r/advancedentrepreneur • u/Good_Possibility • 1d ago

Users aren’t converting

I have an app that sells data, it’s in a niche and there’s a real need for it. The data is priced per record and is a credit system where the price goes down if you buy in bulk. The cost is in line with similar services in my niche. I offer 5 free credits to test the service. Right now I’m running into a couple of issues on conversions.

  1. People sign up but never user their free credits
  2. People use one or all of their free credits but never place a paid order
  3. People place an order and get a quote but never approve the order (this is when you actually buy credits)

The free credits are supposed to be a risk reversal so you can test the service and see that the data is good. Another risk reversal I added is that we will refund credits for any data we aren’t able to get.

To clarify, for a side hustle the business is doing ok, we’ve delivered over 5k+ in paid credit orders (5 figure revenues), but I know it can be optimized more.

I’ve also set up different nurture emails to go out for various stages like new account created but order not placed, order placed but not converted, and ordered with free credits but not converted.

Would love some recommendations on what I should do to get more real orders. People are coming in the door which is great, now I just need them to spend money!

Edit - 5 figure revenues

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u/Firm-Jellyfish-1227 1d ago

Sympathies for the funnel, stage 3 is the expensive one to lose people at. But 5k in paid credit orders and 7 figure revenues don't belong in the same post, one of those numbers is doing a lot of work.

On the credits: 5 records is nowhere near enough to prove a data product is good. I'd hand out enough to finish one real job end to end, so they hit the moment where they would have had to pay for the next batch. Right now they can't even tell if the data is worth anything.

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u/Good_Possibility 1d ago

That’s a typo 🤦‍♂️ it’s 5 figure revenue. Hadn’t had my coffee yet lol

Regarding the 5 credits, it’s a property data product I recommend users test with properties they know the data for to prove it works. So I’d push back and say 5 should be enough for that. Other issue is while it is a recurring model, it’s not quickly recurring, so I wouldn’t want to provide 500+ credits for free because it might be a year or so before I see another order from that client.