Hello friends 👋,

What a year 2023 has been…

2023 was a standout year for First 1000, a year where I dove deep into raw data, transforming it into straightforward, actionable insights. However, the start of the year wasn't as smooth. I was done with rehashing second-hand stories about how companies snagged their first 1000 users. After two years of writing this newsletter, I found myself at a crossroads, feeling both trapped and drained.

My response? I slowed down, focusing on quality over quantity. I penned just 23 issues, most of which were hands-on and practical, with only a few on founding stories. Looking ahead to 2024, I plan to stick to this approach, dedicating more time to crafting issues that are both tactical and actionable.

The core of First 1000 will continue to be product research. It's all about delving into, analyzing, and distilling insights from different sectors. A key element of this process has been examining A/B tests from various companies. These tests are goldmines of information, showing what's effective and what's not, and provide the often-missing context when you're just looking at competitors' flows or features.

Last year was a deep dive into product research, A/B tests, and their wealth of knowledge. Here's a rundown of all the product research findings I shared on First 1000 in 2023 👇:

Monetization:

• Writing copy

  • It is better to say 1 month than to say 30 days for a free trial

  • Packaging features as exclusive to subscribers improve bookings

  • Writing CTA copy for buying a consumer subscription

    • For Free Trial eligible products: Use Start as a verb and mention Free (e.g., Start a free trial, Start free 7 days)

    • For Free Trial ineligible products: Use 1-2 words and make it short (e.g., Subscribe, Continue, Subscribe now)

• Package Selection

  • It is better to preselect the annual plan than the monthly plan, even if monthly is much more popular.

  • For paywalls: Simple, direct, and functional >> creative and cute

• Pricing insights for consumer subscription products (source)

  • Forever plans are priced at X2.8, the next highest tier

  • Yearly plans are equivalent to 6 weeks or 10 months

  • The most common price points are $4.99 (weekly), $9.99(monthly), and $59.99 (yearly)

  • 67% off is the magic discount number

  • Streaming platforms like monthly-only plans

  • Quarterly and semi-annual plans are underutilized

• Free vs. Premium

  • Comparison tables comparing free to paid are high ROI.

  • Bigger numbers are not always better for stats like “premium members are X more likely to…”

Acquisition:

Sign up conversion

• Explaining benefits on the account creation page improves conversion

• Explaining benefits on the account creation page is better than using testimonials

Onboarding

• Social proof on the app landing page (still) works

• Simple, direct, and functional >> creative and cute

User experience

• Use high contrast and colors to highlight the most critical information

Big bets

• Big companies are taking big bets either optimizing feeds for total strangers’ posts or optimizing feeds for super-tight friends.

• Figuring out product discovery is another place big companies were taking big swings in 2023.

Inflection points

Techcrunch: The story about Google Acquiring YouTube in 2006 put Techcrunch on the map
Cash App: Introduction of #CashAppFriday: a weekly social media giveaway where Cash App users can win money by posting with the hashtag, boosting engagement and brand visibility.

Writing good product stories:

• Good stories are unique, surprising, and correct

• Examples of good stores include

  • The Purple Boys YouTube series

  • Girl swiping right on every guy on Tinder pitching her startup

  • Tipping investors $1 on Venmo

  • A Skittles Broadway show

  • A seagull drone pooping Nivea sunscreen on a random beach

  • Hilarious office manager job post for a remote company

• What makes a good story is different than what makes a good product

—
2023, you were awesome!

You gave me the focus I needed. You re-oriented my compass.

2024, you are going to be awesome 🙌. I have not been this excited about First 1000 for a long time!
-
Ali Abouelatta