Hi Everyone,
As has always been our policy, we want to continue with full transparency and disclosure in terms of the thought processes behind our decisions and where all of this is going.
So, I’m sure many of you have heard by now that we are are re-introducing a paid version of RunKeeper (there will be both a premium version and a free one) and we are doing so on a different license, which means you will need to re-download the app either way.
The rollout of this change had been worrying me, as our reasons behind it are a little confusing to explain. But I’m going to give it a shot here, because I think it is important that our users know where we are coming from.
We launched RunKeeper as a paid app in August for $9.99 USD (prices vary from country to country). The price point was easily justifiable, as a Garmin costs $200-300 and the Nike Sport Kit costs $30, and we provide similar (or ultimately more, I would argue) utility on a device already in your pocket with no additional technology or hardware required. We sold a bunch of apps (appx. 5,200) in the first 2 months. Not bad!
Making it Free with Ads
Then, the App Store started getting more crowded, and several competitors moved in, including a couple of free ones. And some smart, well-placed people told us, “we aren’t even in the game unless we make it free” and that “free is the only way to achieve massive scale”. So, we listened. Our iPhone app is only one small piece of a broader strategy, and much of that strategy is predicated around massive scale. Tough pill to swallow for a bootstrapped company, but we gulped and we made it free. And the strategy did work on many levels. In 2 months, we went from 5K downloads to more than 120K, and got lots of press and valuable product feedback along the way. That’s great! But, we shut off our only revenue stream in the process. So now, we needed to figure out how to build a sustainable business.
The Ad-Free Version
Meanwhile, two types of customers were emerging. One said “this is great, and it is free, woo hoo!”. And the other said “I am worried you made it free, I want this to be the best product with the best features, and I would be glad to pay for it to make sure you continue to improve it.” So, we began to realize that we really needed to have two models to satisfy both of these user types. A free model is one, which we can support by advertising. After all, for a free product, the least we can ask is that you see a few ads and enable us to derive some revenue. And a paid model is the second, which would be ad-free and would enable us to fund the additonal enhancements of the premium product. Even at $9.99 USD, this is a one-time, non-recurring fee that is a bargain compared to most traditonal software of a similar caliber.
Requiring New Downloads
Also, here is a little more background info for context. When we launched the app initially, we did so using the license of the outsourced firm that built our initial application. We didn’t have our license yet, and just figured that we would transfer the app to our license once ours got approved. Well, good thing we did it this way, because it took another two months for us to get our license. But, once ours did get approved, we went to Apple to transfer the app to our license and found out this would not be possible. The only way to transfer the app to our license is to pull it from the App Store and re-release it as a whole new application, which would effectively be as if the first app never existed. Now, all of the activities logged on the first app would be safe on the web, but everyone would have to go and download a new app.
Users Who Paid Initially
So, we knew we needed to have both a free and paid version, and we knew we needed to fix this license issue. It only made sense to do it in one shot. Overall, the issue is pretty straightforward, except for one glaring question—what about the users that paid for the app initially? There is no way to enable them (and only them) to download the new premium app for free. At first, we figured, “we’ll just explain this and assure them we will find a way to repay them.” We quickly found out that this did not sit well at all, and in hindsight, I completely understand why! In the brief 7-month history of RunKeeper, I have experienced no worse feeling so far than realizing what I was about to do—burn the people that got us to where we are today! That is no way to build a business, and it is no way to live your life.
So, how could we fix it? Well, the only way I could think of is to make the premium app free for the first 24 hours once it goes live. We could send out emails to all of the initial paid users letting them know the app is live to make sure they can download it without paying again. This isn’t the ideal solution by any means, but we needed to make sure that the initial paying customers were taken care of. Yes, the app will be free to the masses for a day, and yes, we’ll lose out on a bunch of new download revenue because of it, but this isn’t nearly as costly as if we had alienated our early adopters, many of which are a primary part our core userbase. Plus, it is just the right thing to do.
Now that this licensing issue is (almost) behind us, and we will have a sustainable business model in place, it should be much smoother sailing from here on out. I hope that explanation helps demystify our actions a bit, and reassures you that we are as committed as ever to seeing this through over the long haul. Thanks for your support and understanding!
Jason
too long didn’t read
Sounds like you’re doing the best you can given the tricky. Circumstances. Cheers for the detailed explanation and cheers for an amazing app.
Just as a matter of interest, how do you identify “initial paid users”? Are you just assuming that everyone that created an account during the period it was for sale is a paying customer and not worrying about any pirated copies?
Alex, he explains that in the post.
I can’t wait for the new version! The app is the most accurate available. I would love more cycling features and the web site is a little ugly but the features are amazing. I think this app is going to grow in to itself in a really good way.
Thanks Cory. When you say ‘more cycling features’ can you elaborate? I would love to know specifically what you want for cycling that is not in there so we can add it in. Also, we agree the website is raw, but don’t worry, it will get better soon
Jason
Thanks for the explanation Jason – the way you have engaged with us the users since the beginning has been a huge part of the appeal of RK (after the fantastic app of course!). Seasons greeting and I look forward to see RK go from strength to strength in ‘09.
Cheers,
Steve.
Any ETA on when the new versions will hit iTunes?
We submitted to Apple over a week ago. It is out of our hands, but we are hoping and expecting it will be some time this week. We’ll let you know!
Jason
Hi there, I’ve just downloaded this onto my Iphone, seems a great product! Just to let you guys know that I’m from the UK and was lucky enough to stumble onto this site so perhaps more advertising for UK users might benefit your company. I for one shall be putting the word out for you.I wish you the best of luck for the future!
Hi Jason, Without a doubt this is the best app ever! More importantly it’s brought back enthusiam into my runs. I’ve only had it a short while, but have already told many of my friends about it. I can’t wait for the Premium version to come out and feel that it is worth every cent! I also appreciate all the explanations and keeping us informed. I look forward to the future release and don’t mind at all paying for it.
PS – I also enjoyed looking at your jog around Boston!
Happy new year firstly!
Sorry i have not replied till now, just not had the time. I understand your points about making the transitions – when we went from lifecast to having a lifecast pro – we decided to rename lifecast to lifecast lite. that remains free and the lifecast pro first version we release is also free. The more FEATURES we put in that lifecast lite does not have the more we think that time spent on our backend service warrants charging a fee for it.
My only thing that i said about it was the fact that selling a better version for $9.99 without new features just minus advertising would not be a strong draw for me to buy it, i also felt that equating the product to garmin and nike was one that put me off. You made it sound like “well if they can charge that so can we” sorta thing – just my 2 cents.
Personally, i would totally buy the app if it was $4.99 or maybe even $5.99 IF it has the pro features to mentioned. Maybe something like tweeting at the end of a run would be VERY nice.
Overall a very detailed post and for that i applaud you. You certainly have the gift of the gab as we say in england!
Hi Jason,
Count me in – i’d be happy to pay for the pro version. One request I would like to see – embedding google maps is great (iframes for blogging), but It would also be great to track more user details (time, distance in the left column) along with the distance / speed / elevation graph.
Thomas
If a paid version funds a nicer website with more view/analysis options, then I’ll buy it and recommend my friends do the same.
Good job so far!
When is the free 24 hour download – what date?
Thank you for communicating the details on the changes. Other vendors would not want the backlash so they would rather not even explain these types of changes the way you did. Kudos!
As for the download, I looked for it but could not find the “pro” version. Did I miss when it would start?
SM
So i received the email today that the the version is now live however i cannot find it in the AppStore. Only the free version. Any ideas?
BTW, one of the better apps out there. Great Job!
When will the new ad-free version be available for download? I received the e-mail today alerting me that since I was an initial paying customer to download Runkeeper Pro… but I can’t find Runkeeper Pro in the app store??? I don’t want to miss the window!!
P.S.
This is an amazing app…I LOVE IT!!
Lindsey
I got your e-mail announcement and went on iTunes but only saw the free version not the RunKeeper Pro. Let me know how to download the premium version. I’ve been using this app for months now and love it. I mostly bike and it has never let me down.
I don’t want to lose it now!
I just got the email about this at around 10 pm on 1/13, so I went to iTunes and typed in Runkeeper, and I see Runkeeper Free, but I don’t see Runkeeper Pro at all!!! What gives? I did a search, and nothing comes up. When should I look again? I’m too busy to have to go check and check and check and check again every hour or so to see if the program is there or not, or if I can download it free or missed the boat by a few minutes or seconds!
I’m ready to download the pro version but you didn’t tell me when the 24 hours begins. I have searched around to no avail.
Thanks
[...] anti-KRAPPS Certified seal of approval (also check out the great user reviews in the App Store). Click here to read the developer’s blog and why they chose to offer RunKeeper Pro free of charge for 24 [...]
Bought the first version now got the “free” Pro
Thanks a lot! This app is really good!!
Thanks Jason!
Here in the dutch iTunes Store is de pro version for free, thanks a lot!
thanks for explanation have already downloaded new app good luck with the business
[...] will no longer be updated. For a better understanding of why we are making this change, read this RunKeeper Blog Archive Why the New Changes to RunKeeper? As initial paying customers of RunKeeper, we do not feel that it is fair to charge you again for [...]
Thanks for the explanation. It seems to make sense, but you seem to have gone through the mill to get here. I use it for cycling round the New Forest & it’s great to be able to see, on a map, where you spent the day.
Good work fellas.
[...] this sounds a lot like a Crazy Eddie scam (”EVERYTHING MUST GO!”), Jacobs explains things fairly decently on his blog. When he started, he was the only game in town. Now lots of competition has essentially forced him [...]
[...] of RunKeeper learnings here. Premium version ($9.99) sold 5k in two months…changed to ad supported free version that [...]
Aren’t there some sort of tokens that you can create and distribute to your paid users to enable free downloads? I think developers use them to hand out “review copies” of their apps and things like that.
Jason,
Sorry to hear about your mess & thanks a lot for posting it. There is a lot to be learned here. I do have a question about your licensing issue? You mentioned in the post that it was a good thing you built the app under the license of the company you outsourced too. But in the end you had to transfer over to your own license and deal with the mess. Is it just better to start out & wait until you have your own license?
Jason, can you share the name of your outsourcing company and how did you find them? I am looking for one and any experience you can share would be greatly appreciated. Thanks!
The problem is FREE! What other store in the world gives away products for free. Maybe if you buy something you get something for free. What’s the difference between .99 cents and free anyway. There should not be any FREE apps there at all!!
Thanks for the explanation. I think your case can be instructive for many other startups looking to build an iphone app and a core base of customers. Good luck with the new version.
I thought that you were going to send an e-mail that would allow current users to download it for free………..first e-mail I got about the app being posted was today (Jan 17th) and upon going to iTunes I find out the app was posted on Jan 13th (thats more than 24 hours for the “math impaired”. I guess I’ll have to spend ANOTHER $9.99. Thanks for all your help.
I agree with you Chris. I received the same email today, Jan. 17, 2008. Looked on iTunes hoping to get it for free but shocked to see that I was going to have to pay another 9.99. What gives???
The email was sent to me 10 min. Ago. 9:00 pm on jan 17 th
After using the free version several times, I ordered an iPhone armband – waiting for it’s arrival – though running with the iphone in hand (in rubber case) is not so bad.
Here’s some suggestions for new features (I would like to pay if more features are added):
1. Able to tap the locked screen to get a verbal cue on my time/pace/speed – similar to nike model
2. Ability to alter the display to time/distance vs time/pace … make it configurable … my eyes are not so good with small numbers
3. Ability to archive web content. I deleted my iphone entry by mistake and the web content was lost almost immediately
4. Ability to annotate a workout – like “it was really not” “headwind for 1/2 the trip” “Had to stop midway to work out a leg cramp”
5. Ability to see data as a table on the web … see totals by month …
That’s my ideas for now. Great app! Thanks
72 hours after the fact I get an email that tells me I have 24 hours to get an upgrade to what I have already paid for. Nice.
Thanks for being transparent! I’m excited to download ur new version!
I think it’s a great application and would have no problem in paying to ensure ongoing support and development but I’ve found it very unreliable. The stats it produces in the IPhone are typically 20/30% out from reality i.e. ran 10 miles, Run Keeper says 8, (this is on a route I’ve measured in the car by the way). Maybe someone could contact me with some suggestions.
Thanks for the explanation. I got the email Sat Jan 17 at 6.49pm, and didn’t see the Pro for free in the USA iTunes store this morning (Sun Jan 18). Did I simply miss the ‘free window’, or will the price be dropped later today?
Yeah, that sounds good.
[...] Gründe sind kompliziert und besser nachzulesen im RunKeeper-Blog. Es handelt sich vor allem um verschwurbelte bürokratische Lizenzregeln und [...]
I see your problem and downloaded the free one with a new username. Then I thought, well why not support these guys and pay/upgrade to the pro version. But how do I import my past history into the program or is it gone forever and has to stay in the original one?
Hi Jason:
Thank you for you explanation. I downloaded the new version and love it. One suggestion, can you please add calories to RK apps?. I agree with most of the people in the blog. You have done a wonderful jog with this apps. And thank you for being so sincere with us.
Hey Everyone!
Thanks for all of your comments. While the blog comments are a great way to show your questions/concerns/feedback/support/insight, I am also finding it is a difficult vehicle for me to respond to each one of you individually. If you want a personal response, may I also suggest posting in our forum at http://www.runkeeper.com/forum or sending an email to info@runkeeper.com?
Thanks!
-Jason
Hi Jason
I downloaded the free version and I have not had good look with the GPS, when I press start it keeps searching and unable to search my location. I use the iphone 8G previous version of the iphone 3G. I would not mind paying for it, but I want to make sure that it will work with my iphone. Any suggestions?
Yes, go to the forum, there are a lot of good tips. Some quick ones are:
- try the GPS filter on ‘none’ in RunKeeper settings
- try going to maps outside of RunKeeper, finding your location, and then opening RunKeeper
- make sure you are outside when you use RunKeeper
Let me know how you make out! The forum is a better place to go for detailed tech support.
Jason
[...] First Tweet runkeeper Jason Jacobs Highly Influential @philcampbell here you go. Interested to hear your thoughts http://www.runkeeper.com/blog/?p=52 view retweet [...]
[...] sa vizualizam istoricul activitatilor fizice si sa ne laudam cu ele pe Twitter sau Facebook. Lansata in august ca aplicatie cu plata, RunKeeper a facut, in primele 2 luni, peste 50.000$. 3. FriendBinder – un [...]