Should Domestika prioritize adding more free content to attract new users or focus on premium courses to increase revenue from existing subscribers?

Introduction

The trade-off Domestika faces is whether to prioritize adding more free content to attract new users or focus on premium courses to increase revenue from existing subscribers. This decision impacts user acquisition, retention, and monetization strategies. I'll analyze this trade-off by examining the product ecosystem, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking Domestika's current revenue model heavily relies on subscriptions. Could you share the split between free and paid users, and how it's trending?

Why it matters: Helps understand the balance between user growth and monetization Expected answer: 70% free, 30% paid, with paid slowly growing Impact on approach: Higher free user % might justify more focus on conversion

• User Impact: Based on user behavior, I'm assuming there's a conversion funnel from free to paid. What's the typical journey of a user who converts to a paid subscription?

Why it matters: Identifies key touchpoints for user conversion Expected answer: Users typically engage with 2-3 free courses before converting Impact on approach: Would inform content strategy to optimize this journey

• Technical Feasibility: Considering content creation, I'm curious about the scalability of producing high-quality courses. What's our current capacity for creating new premium vs. free content?

Why it matters: Determines the feasibility of rapidly expanding either content type Expected answer: Premium courses take 3x longer to produce than free content Impact on approach: Might limit how quickly we can scale premium offerings

• Resource Allocation: Given the potential shift in strategy, I'm wondering about our current team structure. How are our content and marketing teams currently split between free and premium initiatives?

Why it matters: Assesses our ability to pivot resources Expected answer: 60% focused on premium, 40% on free content Impact on approach: Might require team restructuring based on chosen strategy

• Timeline and Urgency: Considering market dynamics, I'm curious about the competitive landscape. Are we seeing increased pressure from competitors in either the free or premium space?

Why it matters: Helps prioritize short-term vs. long-term strategies Expected answer: Increasing competition in free content space Impact on approach: Might necessitate a more aggressive free content strategy