Reid DeRamus, formerly of Hulu, Crunchyroll, HBO Max, and Substack, joins CJ in this episode to discuss B2C business models and growth strategies. Reid sheds light on some of the profound evolutions he’s experienced in his career at the intersection of tech and media. The discussion dives into the nuances of price increases in B2C subscriptions—how they affect revenue growth, customer acquisition, and retention—and explores strategies for effectively communicating these changes. They examine the pitfalls of discounting, the pros and cons of annual plans, and the art of segmenting consumers who may be willing to pay more. Reid introduces the concept of “elevating the cohort floor” and emphasizes the importance of the initial subscription period for retention and conversion. The episode also tackles the paradox of "too healthy" metrics and why you should consider pairing your KPIs up. The podcast is not over until they touch on balancing advertising and subscription models, and discuss unique monetization lessons from platforms like OnlyFans, among others.

—

SPONSORS:

Vanta's trust management platform takes the manual work out of your security and compliance process and replaces it with continuous automation. Over 9000 businesses use it to automate compliance needs across over 35 frameworks like SOC 2 and ISO 27001. Centralize security workflows, complete questionnaires up to five times faster, and proactively manage vendor risk. For a limited time, get $1,000 off of Vanta at vanta.com/metrics.

RightRev automates the revenue recognition process from end to end, gives you real-time insights, and ensures ASC 606 / IFRS 15 compliance—all while closing books faster. Whether it's multi-element arrangements, subscription renewals, or complex usage-based contracts, RightRev takes care of it all. That means fewer spreadsheets, fewer errors, and more time for your team to focus on growth. For modern revenue recognition simplified, visit rightrev.com and schedule a demo.

Brex offers the world's smartest corporate card on a full-stack global platform that is everything CFOs need to manage their finances on an elite level. Plus they offer modern banking and treasury as well as intuitive expenses and accounting automation, bill pay, and travel. Brex makes it easy to control spend before it happens, automate annoying tasks, and optimize your finances. Find out how Brex can help you make every dollar count at brex.com/metrics.

Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.

—

@cjgustafson222 (CJ)

LINKS:

Growth Croissant - https://www.reidtandy.com

—

TIMESTAMPS:

(00:00) Preview and Intro

(02:00) Sponsor – Vanta | RightRev

(04:40) Reid’s Career Path Through Evolutions in the Media World

(11:40) Price Increases for Revenue Growth

(15:14) Why Price Increases Impact Subscriber Acquisition More than Retention in B2C

(18:00) Sponsor – Brex | Planful

(20:25) Strategies for Price Increases Without Dropping Subscriptions

(24:32) Pricing B2C to Allow for Room to Discount

(25:52) Can Discounting Cheapen Your Brand

(29:26) The Pros and Cons of Pushing People Towards Annual Plans in B2C

(34:50) The Hierarchy of What Monetizes Best in Paid Subscriptions

(39:59) Targeting Consumers Who Are Willing to Pay More

(45:00) The Importance of the Initial Subscription Period for Retention and Conversion

(50:01) Why Your Health Metrics Can Be Too Good

(51:49) Paired Metrics: Growing Two KPIs at the Same Time

(54:08) Balancing Advertising and Subscription

(01:00:49) The B2C Business Application of OnlyFans

(01:04:35) Substack and the Value in Focus

(01:07:07) Interesting Emerging B2C Apps

(01:07:59) B2C Apps Becoming B2B Apps

Get full access to Mostly metrics at www.mostlymetrics.com/subscribe

A Masterclass with the Michael Jordan of B2C Subscription, Reid DeRamus

Run the Numbers