Read the transcript
Jeroen Leenarts: Hi, and welcome
to another special edition of my
podcast. I'm sitting here with
David Barnard, you might know
him from another podcast you
might be listening to. And
that's the sub club podcast by
revenue cat. And I asked him to
be a guest on my podcast because
I was interested in his journey
as a person, but also why he
started the podcast with a
colleague within revenue cat,
because it's a company podcast,
but also more of the business
aspects of running an app and in
app purchases, and subscriptions
and all those kinds of things.
So David, welcome to my podcast.
Look forward to talking to you.
Can you tell a little bit about
your background and how you got
started in tech?
David Barnard: Sure. This point,
this goes way back. I was a, I
was a recording engineer. And
that actually got me into being
an apple nerd. So I was using a
power book 17 inch PowerBook in
the recording studio, and
started reading MacRumors, and
really got into the whole kind
of Mac nerd scene, way back in
early 2000. So like 2002, three.
So when I, when I first started,
when I first got my Apple
Computer and started becoming an
apple nerd, I used them in
college and stuff in the 90s,
but never owned one myself until
then, anyways, and then that led
me to all the rumors about the
iPhone coming out. And I waited
in line and was one of the first
people in San Antonio to get an
iPhone, San Antonio is a few
miles away from where I live
now. And I was really blown away
by by the ease of use, and it
just felt like this. You know, I
mean, hindsight is 2020. But
genuinely holding that thing in
my hand watching my, you know,
50 something at the time, your
old dad, and how fluidly he got
it compared to he just had
always struggled with computers.
And it really just felt like
this is a big deal. And so a few
months after the initial
release, in 2007, rumors of the
iPhone SDK started happening.
And the jailbreak scene started
where people were actually
building apps even though there
wasn't an official SDK. And so I
started tinkering with ideas.
And amusingly I was listening to
a ton of podcasts at the time as
well and shout out to Leo
Laporte. He was talking to Amber
McArthur on one of their shows
back in fall of 2007. And they
were talking about the Facebook
platform and how a lot of early
games just kind of rode the wave
of this new platform that
Facebook had created. And so
when the rumors of the iPhone
SDK started circulating, and
then Steve Jobs eventually
confirmed those rumors, I
thought this is going to be an
incredible wave. And so at that
time, I was working, you know,
2pm to 2am, in the recording
studio, and my wife was working
nine to five. And I was just
thinking, I gotta, I gotta find
a way if I'm going to, you know,
raise a family and, and ever see
my wife again, I, I got to
figure something different out.
And then you know, all the
rumors and the business
opportunities seem to be there.
So I actually founded an app
company a few days after the
official SDK was announced in
March of 2008. And had an app on
the App Store in August of 2008.
So this is this, just like last
week was my 14 year 14 year
anniversary of having an app on
the App Store. And every month
since September 2008. I have
gotten a direct deposit from
Apple. So 14 years running, I
don't know how many months that
is. Every month I've gotten a
payment from from Apple. So
yeah, so I operated my company,
as an indie developer, actually
don't code, worked with
contractors and then eventually
started forming partnerships on
the code side of things. So I
focused on product, business
marketing, kind of everything
except code and design. And I
would hire out some of the
design I'm kind of a conflict my
way through being an App
Designer sometimes. And so yeah,
I operated my company for and
it's still operated on the side.
Now that I've joined revenue
cat.
Jeroen Leenarts: So So that's
164 months of checks received
from from Apple. That's really
cool. So and you mentioned that
you you your background in tech
is actually audio engineering,
because you were like a night
owl because of your job. Run the
run your night shifts, probably
at a radio station, I can
imagine.
David Barnard: No, no, I was
actually a recording In the year
like so I was making albums. And
that was just the that was the
musician. schedule of when they
want to record, you know that so
many musicians are used to the
night owl performance schedule.
And wow, so that was just kind
of the preferred schedule for a
lot of musicians. I mean, I'm
exaggerating a little, I mean,
there were, there were plenty of
days where we'd go in at 10am
and leave at 10pm, or, but it
was it was rarely shorter than a
10 to 12 hour day. And I don't
remember ever starting a
recording session before.
Jeroen Leenarts: But I can
imagine that with creative
people, then once they get their
creative juices flowing, they
don't want to stop. And that's
also probably why they pay you
as an audio engineer to just
keep going. Yeah, but that's not
very compatible with an intended
family life at that point. So I
can imagine that you started
looking for other opportunities.
And then basically being there
at the Gold Rush of the of the
iOS operating system, back then
it was iPhone OS, there must
have been like, well, a perfect
storm, really of opportunity to
just be there at that point in
time to actually have to click
in your mind that it is a good
idea to start doing something
with this thing called apps. And
then I'll basically be able to
ride that wave, at least for a
couple of years, very decently.
And I'm still getting checks to
this day by that venture. So
what was your What was your
wife's response? When you
actually said, Okay, I'm gonna
quit the audio engineering, and
I'm going to get into this thing
called apps. And it's like these
little icons on this flashy new
screen by Apple.
David Barnard: She was super
supportive. You know, she was
she was working at the time,
full time. And she was in social
services. So not not making much
money, but it was just the two
of us. And we had a very
inexpensive little two bedroom
condo that we owned. So our
overhead was super low. And you
know, the risk was pretty low.
And I actually borrowed money
from family to kind of get that
the first to get it launched and
start getting income. And so she
was she was very supportive. And
then we actually got pregnant. I
think two months after I started
the company, so May of 2008, we
found out she was pregnant. And
that changed a lot. I mean, you
know, she was continuing to be
very supportive, but it was kind
of, for me, incredibly high
pressure, like I got to make
this work or find another job,
ASAP.
Jeroen Leenarts: Yeah, it's
just, it's not just next month's
rent that you're facing, but
also college education, like
1020 years down the line. That's
also all of a sudden, in the
back of your mind, when you're
making financial decisions.
David Barnard: Yeah, and her not
being able to work to mean, I
don't think her I don't think
she even got a maternity leave
from the job. She was working at
the time, you know, that, you
know, we're very fortunate these
days, and especially in tech to
have very generous maternal and
paternal leave policies. You
know, we were pretty much
planning on, you know, her not
having an income for at least a
little while, and thankfully,
things didn't take off enough to
where she she actually has
hasn't really worked since then.
She She finished her master's
degree and got licensed as a
professional counselor. And
actually, just next month, we'll
start her private practice. Our
youngest is now four years old.
And so through this whole
adventure, she's been, you know,
supporting me and wrangling the
kids. And like I said, finishing
her master's degree and getting
licensed as a as a counselor. So
it's been it's been a wild ride.
Jeroen Leenarts: Yeah, I can
imagine because a four years
old, that's also the age when
you have a kid that is able to
play for a little bit of an
extended period without your
interference. And it's, it is a
game changer when these kids
start playing on their own,
because my youngest is also four
years old. And it makes a huge
difference having like,
something in diapers or
something that's running around
and able to entertain itself. So
family life, put a lot of
pressure on you, or at least the
intention of half of creating a
family, which wife
David Barnard: if you're going
to release a video of this, but
if you see all this gray hair
that was having four kids and
running a small business for 14
years.
Jeroen Leenarts: Yeah, but
that's also interesting, because
you run you run a small business
for 14 years, but what was the
first product that you released
with this business?
David Barnard: So the very first
app I released was trip copy,
and it was too early on, you
know, when I started thinking
about business opportunity, you
know, one of the key things I
honed in on was, and maybe
regrettably because there were
tons of other apps that made a
ton of money, but I really tried
to focus on useful kind of money
making and money saving tools.
So the first app I released was
called trip Cubby. And it was to
track mileage for reimbursement.
My wife in her social services
role, at the time was doing a
lot of driving and was not
tracking her mileage. And I kept
telling her, you know, if you
track your mileage, you'll
you'll you get reimbursed from
your company from the from the
place she was working at. And
she wasn't even getting those
reimbursements regularly. And
then then, of course, if you you
know, for me, once I started my
small business, I knew I could
write it off on my taxes. And so
it was just something I knew
people needed and that the
iPhone could make better. So
that was the first one. And then
pretty soon after that, I
launched gas Cubby. And so the
company name was app, Cubby. And
the idea was, there were going
to be a bunch of cubbies for
your data. So gas kabhi was the
second one. And it was tracking
fuel economy and maintenance. So
to remind you to change your
oil, you would enter your
mileage and your phillips and it
would calculate your MPG and
kind of help you know how you're
doing on fuel economy. And then
the next one I released was
health Cubby, which was like a
health tracker. It was so early,
you know, I don't even know if I
lose it lose it. It's one of the
oldest kind of health apps, it's
still going these days. And I
think it may have even been
before lose it launched. So they
were there was a ton of
opportunities. And looking at
hindsight, you know, I
definitely took a very kind of
indie developer approach. And,
and a lot of huge companies have
been built around some of the
early things that I was
exploring. You know, MileIQ is a
great example where, you know,
they built an incredible
business got acquired by
Microsoft, you know, while I was
just kind of tinkering around
treating it as a side project
kind of mentality and a very
indie app developer kind of
mentality. And then same with,
you know, these health apps
where they were lose it, and my
fitness pal and a whole bunch of
other, you know, massive apps
were built. And my health cubby
app kind of flopped, really.
Jeroen Leenarts: But that's the
advantage of having a number of
products that you're working on,
or that you have launched at
some point. But what's
interesting with the apps that
you created, and 14 years of
track records with creating a
product on the iOS App Store and
running it there is that you've
also been through all the
transitions of monetization
opportunities that Apple has
provided, because initially, it
was just pay once and be done
with it. And then yeah, that was
you could only have like a
successful app, if you kept
getting more customers, it
seems. And then, at some point,
subscriptions, or in app
purchases, it was actually in a
purchase was the first thing
that they released. So then you
had consumables, and that was a
big change. And then at some
point, subscriptions, but what
does that mean for you, as a
business owner of 14 years
running an app company?
David Barnard: Yeah, I mean, I
could I could talk about that
for the whole hour, I actually
did a did a podcast, I guess we
can, I can find it later and
link it in the show notes or
something. But I spent the
better part of an hour talking
about the history of
monetization on iOS. Because it
really, you know, if you go deep
and think about the different
phases, you know, when the app
store was paid up front that
incentivizes a certain type of
app, including all sorts of
things like it incentivize the
kind of race to the bottom, as a
lot of people have called it
where you could get attention by
cutting the price of the app. So
you take it from, and there were
a whole sites dedicated to these
kind of price cuts. And so there
was incentive to drop your price
to get attention in these price
cut websites and apps. And then
once you did cut the price, more
people would download it in the
top charts are based completely
on volume. So the number of
downloads, not the amount of
revenue. And so if you drop your
price in 99 cents, you get more
downloads, and that shoots you
up to charts. And then when
you're in high on the charts,
you get more exposure from
people looking at the top of the
charts. And so, you know, being
paid up front and then even so
many aspects of wave the way the
App Store itself was assigned
incentivize certain actions in
certain incentivize certain
kinds of apps. It incentivized
certain kinds of business models
like if you could be the IB rap,
and just charge 99 cents for a
gimmick. You know, there was so
many stories of of making
hundreds of 1000s of dollars on
these gimmicks. And it was very
different where you didn't have
to prove any kind of value over
time. It was just kind of not a
pump and dump but it was you
know, you could build up a bunch
of marketing around something
and have this big successful
launch and make a bunch of money
all up front and in the app
didn't necessarily have to
deliver on that. And then within
App Purchase was kind of like
the next phase where you could
then launch a free app, and have
this kind of freemium model
where you really did have to,
you know, deliver some amount of
value, to convince people to go
ahead and pay the in app
purchase to unlock features. So
I experimented with this in my
timer app in my mirror app, like
I launched a bunch of apps 30
total over the 14 years. So I've
experimented with all these
different monetization models
over the years in the same app,
releasing new versions, but then
also in brand new apps.
And then in 2016, when Apple
opened up subscriptions to all
apps, that really was kind of
the most fundamental changes
that, you know, if you built
something that does deliver
value over time, a subscription
model makes sense as a way to
charge for that. So, you know,
if somebody's using, you know,
my weather app, you know, it
cost me on an ongoing basis to
provide that service. So I
actually had a paid up front
weather app. And the way I made
that work was actually to sign a
deal with a weather provider
where they just took a
percentage of revenue. So I
didn't have to worry that if I
dropped the price to 99 cents,
it might actually cost me $5 in
weather data over the lifetime
of an app user. But now that I'm
able to do subscriptions in my
weather app, I feel like it
really is much more aligned with
my customers in that I need to
provide that value over time,
they need to feel like they're
getting that value. And then
it's worth subscribing to
otherwise, you know, they're
just gonna leave, go download a
free weather app, you know,
switch to another subscription
weather app. And so from those
early days of, you know, if you
got enough kind of marketing, if
people were curious, you know,
you could you could make a
little money have this pay day,
to now with a freemium
subscription app, like you
really have to, you know,
demonstrate value, and then you
have to provide that value over
time to build a good business on
top of it. So, so yeah, the the
monetization opportunities of
the Appstore has very much
shaped the opportunities that
I've pursued the way I've run my
business, the experiments I've
done. And, you know, I mean, I'm
a little biased working for
revenue cat these days. But I do
feel like the, the subscription
model is a great way to align
incentives and to kind of force
app developers to just build
better apps. Because if you
build a bad app, that's not very
retentive, you're gonna struggle
as a business. And so it's
really aligned with providing
that value to the users. Now, I
will say, I don't think
subscriptions are for everyone.
You know, there's a lot of apps
that do provide a more kind of
limited time value that or don't
provide that value of your time.
And so I don't think that works
for everyone. I still wish Apple
had allowed a paid update model.
In some ways, you know, I do
think that that's maybe a relic
of the past. And maybe maybe
subscriptions really are just
the better way to do it. But app
developers never had the
opportunity to explore the paid
update model, and what that
could mean for their business.
And so, you know, again, I mean,
I'm pretty bullish on
subscriptions generally. But I
still personally wish we had
other options. Because the more
monetization options you have,
as a developer, the more you can
do what's right for your
business and align things. So as
I was saying, just a second ago,
I don't think subscriptions are
right for every app, if it's a
more of a one time use or more
of a, you know, just you don't
deliver the value over time,
then charging five bucks up
front, and then having a $5
upgrade two years from now might
be a great way to run your
business. But that's just not
even an option. And so, to build
those kinds of models, now you
have to launch a freemium app
and use an in app purchase. And
then you pay gate the new
features with a new in app
purchase. And it's really less
user friendly and kind of more
customer hostile than I think it
could have been if Apple had
ever supported, paid updates on
on the App Store natively.
Jeroen Leenarts: Okay. And
you've been doing your own app
business for 14 years. You're
still doing that right now.
Because you mentioned earlier
that you're still getting these
monthly checks by Apple. But
when did revenue cat became a
part of your day to day life?
David Barnard: So in 2017, I
started working on a whole new
version of my weather app that I
had launched in 2011. Ivan as
perfect weather. And by 2017, it
was pretty clear, especially for
an app like a weather app where
you have ongoing costs over time
that subscriptions were the way
to go. And so I launched weather
Atlas in the action was right
around this time in 2017, so
about five years ago, and we
launched it with a subscription
model. And it was a struggle. So
a lot of the time that we should
have spent working on
differentiating product
features, we were building out
subscription receipt validation,
and, you know, how do you renew
the monthly subscription and
keeps status updates and
everything. In the app, we
actually did it all client side,
which is a huge nono. But a ton
of apps were doing it at the
time. And it just created so
many bugs. And you know, we
never, we didn't track the
amount of time we put into it.
But I would bet something like a
fifth to a quarter of the
development time that we spent
on the app over the next two
years. And even building up to
that launch in 2017 was building
out the subscription payments,
and then also maintaining it,
because we just had so many
bugs. And so by early 2019, I
was just I was fed up, I was
like, you know, I would be
pushing like, hey, let's let's
get this new feature out, let's
fix this. And the developer was
troubleshooting monthly
subscriptions. And then then I
was like, You know what, just
remove the monthly, if we're
having trouble with monthly
subscriptions, just remove it,
because what was happening as
people would subscribe, and at
the end of the month, it would
cut off their access as if they
had unsubscribed. But they still
had an active subscription. And
so we had some flawed logic and
how we were updating the receipt
client side, which again, it's
not a good thing to do. So So I
think it was like maybe fall of
2018. I was like just removed it
to hang monthly subscription.
But we're still having the same
bugs with the annual
subscription, but at least it
was occurring less frequently.
And so we got less support about
it. And so I was just I was just
fed up. And I think the first my
first introduction to revenue
cat was Jacob the revenue cat
CEO, when they were just like
four people in 2019. DM to me or
cold email me or something is
like, hey, you know, I saw on
Twitter, you're you're having
trouble with your subscriptions,
you know, check out this
project, I'm working on revenue
cat. And so So I took a look.
And I was super impressed had a
bunch of kind of nerdy questions
for Jacob on on like privacy and
what, and then I was really
leery of startups, I had been
burned by the parse acquisition,
we had built a bunch of
infrastructure on this company
called parse. And I believe
Facebook acquired them and then
rent it for a little while, and
then shut it down. And we were
kind of left to scramble to,
like, rip out that
infrastructure. And thankfully,
we didn't actually have to
replace it, because a feature we
were using for just didn't
really take off. So we just kind
of end the life, the features,
but it was still like this huge
issue to have to rip out all
this stuff. And so I was really
leery of, you know, installing a
third party SDK to manage
payments. And you know, what
happens if if problems happen?
You know, what about user
privacy? What about the company
shutting down? You know, are
your SDK is reliable? Are they
open source? You know, I had all
these questions. And I mean,
every single answer was what I
would have hoped for, you know,
it was the SDKs were open
source. So if there was a and
still are to this day, you know,
so if there's a crashing bug, we
could, we had the power to go
fix it ourselves. We knew what
was going on, we knew what data
was collected, we knew. And so I
started the process of getting
revenue cat installed in my
apps. And then revenue cat had
hired a kind of marketing ish
person. And that didn't work out
and and I forget exactly if I
asked Jacob or Jacob asked me,
but
we ended up chatting about me
working in some kind of role at
revenue cat. And my apps had not
been performing well, that kind
of couple of years leading up to
it. And I was kind of getting
tired of, you know, the end life
and not having a paycheck. And,
you know, a lot of apps the way
my app business would would run
as I'd, I'd have a big launch
and make a lot of money and then
I'd spend down that money and
then I'd make some money, and
then I'd spend down that money.
And so it's very kind of
inconsistent revenue, of course,
because I was just then kind of
starting to make the transition
to subscriptions. And so made a
lot of sense. So I actually
joined revenue cat, part two I'm
in 2019. And it's been really
fun, you know, coming to revenue
cat as a customer, and then
seeing how well it solved my
problems gives me a really
unique perspective for, you
know, to work with my colleagues
inside revenue cat, and then to
also kind of be a very public
person representing revenue cat
to the developer community more
broadly.
Jeroen Leenarts: So a lot of
things to unpack there. So, app
business of 14 years, and then
three years ago, so when you
were 11 years in, you started
getting involved with draft new
cat. And it seemed to solve a
lot of your most pressing
issues. So it basically took a
lot of headache away, it seems.
And, but but is there a common
thread that you and your
colleagues at revenue cat, that
they all have their own
experiences with, basically, an
app store business, and then
they come across revenue, cat,
start using it, and then I don't
know, at some point, you cross
the thresholds, and you're
hired.
David Barnard: You know, it
feels like early on that was
maybe a little bit more the
case, we actually have this kind
of club inside revenue cat in
the app, kind of club where we
meet and chat about apps, I've
actually been a little while,
but my colleagues have kept the
flame going. So it's probably
probably only, you know, six out
of now we're closing on 60
employees who have active apps
in the App Store. And now, you
know, with back end engineers,
and, you know, security
engineers and data engineers and
data scientists, and, you know,
the just the breadth of folks
that we're hiring and product
marketing and content, marketing
and sales people and, you know,
we're a pretty big company now
closing in on 60 employees. And
so that's just much less the
case these days. Although for a
lot of our I would say, you
know, more key hires, like a
couple of our head of product
was was not an indie developer,
but worked at an app company.
And that experience just
translate. So directly, he
worked at a subscription fitness
app. So he really did understand
our customer, he essentially
could have been our customer,
and was working on all the same
problems. Another one of our
product managers came from IAC,
where, you know, again, he
wasn't an indie developer, but
he was VP of product for one of
IAC subsidiaries called taltech.
So yeah, it's kind of kind of a
mix, I'd say maybe six employees
who kind of actively still have
apps in the App Store and or
kind of came to revenue cap from
the indie scene. And then
probably another six or eight
employees who worked at other
app companies. And I mean, you
know, our co founders, Jacob and
Miguel, they were actually doing
subscription app infrastructure
at elevate the brain training
app. And that's what kind of
inspired building revenue cat
because they were kind of,
again, facing all the same
problems I faced of, of what a
hassle it was to build and
maintain this subscription
infrastructure. And at the time,
I believe elevate was like
1020 30 employees. So it wasn't
like they were a tiny indie
company, it's just really hard
to do. And even these days was
shortcut to making it somewhat
easier. You know, if you operate
across multiple platforms, if
you're doing Android and iOS and
collecting web payments on on
stripe, you know, yes, circa two
makes it it easier if you want
to just do it yourself. But once
you start, oh, now I want to get
the data from my AP into
amplitude. So I can get better
product analytical. Now you have
to, you know, have the server
server side back end, you need
to start adjusting the server,
the server notifications, you
need to build a tool to get
those events forwarded to
amplitude that oh, now I want to
do like wind back campaign. So I
need to to put together a CRM.
So now you're now you're kind of
rebuilding your internal data
stack, because there's things
you didn't realize you needed
that now you need. And you have
to build a tool to get that data
into braze or iterable, or some
of these other CRM platforms.
And so So yeah, so we we handled
kind of the base level, kind of
in the complexity of like, I
just want to get my app working.
But now, you know, we solve that
in a way that works for the
biggest apps in the App Store. I
mean, we're working with notion
and visco and like a bunch of
huge apps, that you know, have
the teams that that they could
build it themselves. But you
know, we we build it in a
scalable way. We've worked John
Smith is another customer hit
number one in the app store.
And, you know, we can handle
that kind of scale. You know, we
talked on the podcast with David
Smith about how, you know, if
he'd have been trying to run his
own subscription infrastructure,
it probably would have fallen
him over and cost him hundreds
of 1000s of dollars, because the
scale of him hitting number one
in the App Store was just
insane. So yeah, it's it's super
fun to kind of have come at this
from that indie mindset and have
a lot of employees who come
from, you know, their smaller
app companies or, you know,
somewhat larger teams, but then
realize we're scaling and
building this for the biggest
apps in the App Store.
Jeroen Leenarts: Indeed, and, of
course, the case that you
mentioned there with, with
Richard Smith, that was like,
over the past few years, one of
the really big runaway successes
that we've seen in the app
store, I think. And of course,
if you have a big enterprise,
that that's doing in app
subscriptions and stuff, that's
a different skill altogether.
But yeah, just seeing what a
social media success can do to
to a product of an indie
developer. I can't imagine that,
that David had like his his
moments when this all was
happening, Will everything Stay?
Stay up? Will everything keep on
working? And what was revenue
cat at that time? Like
operating? Like, yeah, we're
fine. It's like, or wasn't
really like, okay, something's
happening here. And now we need
to make sure that we, that we
batten down the hatches and try
and weather the storm that we're
in right now a good one to have,
but still,
David Barnard: yeah, no, I mean,
I'll be honest, it was a it was
a firestorm inside revenue cat
for about a week, there were a
lot of late nights, you know,
I'm not on those teams. So you
know, it didn't impact my life.
But our, you know, everybody
from Jacob and Miguel, the CEO
and CTO to our infrastructure,
folks. Thankfully, we are fully
distributed. And so there was a
little bit of being able to,
like one of our lead back end
engineers in Taiwan. And so
there was some kind of being
able to pass the torch and not
stay up all night. But, you
know, it taught us a lot about
the kind of areas that we needed
to work on. And it was
incredible growing experience
for us. And it really, it was
one of the things that was kind
of the I mean, looking back, I
don't know that Jacob and Miguel
say this. But to me, it felt
like perfect timing, because it
helped us to get all of those
things nailed down and
understand where kind of the
bottlenecks were in preparation
for over the next year, we
started landing bigger and
bigger and bigger apps that were
bigger and bigger scale. And
then since then, I think we've
had three or four other apps hit
number one in the App Store,
three or four other customers
hit number one in the app store.
And so So yeah, that that week
of firefighting, and then the
months of kind of fixing things
on the back end and stuff was
was pivotal to us, you know,
being prepared to grow like we
have the couple of years since
that happened. So we didn't go
down, you know, there was no,
you know, data loss, no, you
know, we just Smith customers
were able to purchase and
subscribe and all that kind of
stuff. And so while there was
you know, firefighting and it
was tough keeping things up, we
we managed and didn't have any
downtime during that, that
crazy, we quit, it was just
going insanely viral.
Jeroen Leenarts: It's a pressure
cooker, then you quickly
discover where the where the
problems are in your
infrastructure and where you
need to, like beef up some
things to make sure that you can
hang on and maybe even optimize
some code here and there. Yep.
You also mentioned that you're
kind of a public person, and
especially in your role with
revenue cats, that's clearly the
case because you run a lot of
their public facing marketing,
at least that's the impression
that I have, but have you always
been like, the outgoing type the
public face of a company or
brand of something? Or is it
something that you grew into
over those 14 years of being an
app business owner?
David Barnard: Yeah, you know, I
never thought about it quite
that way. You know, with a
recording studio it was a very
kind of interpersonal you know,
getting to know the musician
over many long hours in the
studio and kind of politely
working through the challenges
and you know, the you know, when
singers performing and they're
off pitch and having to say,
hey, let's, let's try that one
again. And let's work on that
pitch and so you know how to had
a little bit of that kind of
experience and the the job as a
recording engineer, if you have
a music producer, are with you,
the music producer kind of acts
as a sort of product manager of
the album, where they kind of
manage budgets and time and kind
of keep things moving forward.
But, you know, a lot of the, I
was just working in a small
recording studio. So we just had
all sorts of bands who didn't
have the money for a producer.
They weren't, you know, signed
with a record label or anything.
And so I ended up kind of being
the the kind of, you know,
producer and kind of product
manager for that for the album.
So got a lot of experience there
kind of that led to the kind of
translated somewhat into being
app developer of kind of
managing the the apps I built.
But then transitioning into the
app development, it was really
more about, about what I could
do to learn and get attention
from my apps and early on. And
still to this day, I probably
over rely on getting press and
attention for my apps. And so
back in 2008, pretty soon after
the launch of actually before
trip hub even launched I mean, I
was emailing the unofficial
Apple weblog, and Macworld and
like all the Mac rumors and all
the big sites back then and
saying, hey, you know, talk to
me about this app. And then that
actually, then I started
blogging, and John Gruber,
linked to my blog, various blogs
that I wrote about the
experiences as an app developer.
And then that led to getting
quoted in the New York Times and
Wall Street Journal, I did an on
air interview with CNBC. And so
it just kind of snowballed not
necessarily, intentionally, and
I never, you know, never took a
kind of PR class or, you know,
learn anything about public
speaking. But I started getting
invited on podcasts. And so I
would, you know, do interviews,
you know, Rene Richie,
interviewed me for the no fish
shop, what was he at TTIP. I
always forget what it stands
for, but, and then eventually,
forget all the names of the IMO
is what it transitioned into.
And so yeah, it just somewhat
happened by accident that, as I,
you know, immersed myself and
wrote more and more and was on
Twitter and in the community
that I just kind of got asked
and thrown into that kind of
public spotlight more and more,
and just got really used to, you
know, talking to people in the
press and talking to people
throughout the industry.
Jeroen Leenarts: And the
recording stuff that you did
before the app work that you got
involved with, how long have you
been a recording engineer before
you got into the whole app
ecosystem.
David Barnard: So I I started
tinkering with recording music
in the early 90s. When I was
like 12, I played the piano and
then ended up playing in bands
and stuff like that. And so I
knew since I was like, 12, or
13, that I wanted to be a music
producer. So so when I went to
school actually studied sound
recording technology at
university, I spent a couple of
years bouncing around. Before I
actually landed the it was kind
of a contract gig with a
friend's recording studio, where
I was kind of a contract
engineer where we would just
split the money 5050 For
whatever, you know, we could
book and that back to your
earlier comment about you know,
working 1012 hours in the studio
wasn't just kind of not wanting
to interrupt the flow. It was a
we charged by the day, not by
the house. I didn't do a very
good job of saying hey, it's
it's a 10 hour day you're paying
for it not a 14 hour day. And so
they would, you know, if we
especially if we were in the
flow is really hard for me to
just cut things off. So I
started that in like 2003 So I
was a freelance recording
engineer for four or five years
professionally before I started
the company.
Jeroen Leenarts: So are you
seven nice kid or an 80s? Kid?
David Barnard: Born in 79,
Jeroen Leenarts: so that's a
good that's a good that's good
built here because that's also
my built here. Nice. Yeah, I'm
actually this week is my
birthday. So Congrats. Thanks.
Um, and so you got started as a
recording engineer, then you got
into app development then you
came across revenue cat got
employed by them because the the
monthly payment of salary was
very enticing. Must have been a
good offer as well. But did you
get started with with podcasting
right away when you started
drafting cat was that part of
your goal when they hired you or
what's the deal there because
supply up as a podcast. To me
it's been around for a while
now. But
David Barnard: yeah, so the
podcast is Two years old this
month actually, I had to be
convinced. I was a recording
engineer, you know, loved the,
you know, audio and all that
kind of stuff. But honestly, in
2009, I mean to 2019 It just
felt like everyone was starting
a podcast. And I was like, Do we
really need another podcast? And
so if, you know, funny enough,
Jacob and our head of marketing,
Corey, really had to convince me
that it was something worth
doing. I mean, I wish I could
take credit, like, I pitch them
on, on, on the idea of a
podcast. And I think when I got
hired, I did actually put in
there as kind of one thing I
could work on, potentially with
a podcast. But by the time you
know, they, it was time to
actually start doing a podcast,
it was, it just felt like
there's so many podcasts who
would actually listen to it.
And, you know, they, they
convinced me there would be
value in it. And, you know,
again, having been on a bunch of
podcasts, having, you know, even
been on camera with a big news
organization, you know, had some
level of personal skill. And and
I will say that, I mean, I
listened back to some of those
early episodes and cringe.
Hosting a podcast is a different
skill set. Yeah. Knowing how to
ask questions and try not to
ramble on and I still have
really bad verbal tics that I'd
like to work on. That you notice
just 100 times more when you're
when you're hosting a party.
Jeroen Leenarts: Oh, yeah, the
worst thing that you can do is
editing yourself, right? Yeah.
Yeah, I have to do that every
week. So but so basically, you
got started at revenue cat, but
and you did audio engineering,
you had an app business? What
did they hire you for them?
Because it was not for a podcast
straight up that that came
later. Because that it sounded
like they thought a we have we
have David here, he knows
something about audio, podcast
audio, Hey, David.
David Barnard: You know, it was
it was a bit of a fluke. And
looking back, it was probably
just the right time to hire
somebody like me, but also crazy
to hire somebody. I think that
thinking was more in my title,
there is Developer Advocate.
It's doesn't, I'm not a
developer. So that's always been
a little tricky. But the kind of
idea that Jacob was kicking
around and hiring me was that I
would kind of be the voice of
developers inside revenue cat,
and then the voice of revenue
cat, in the broader developer
community. And so, you know,
with my contacts, you know,
having so many friends in the
industry, having so many friends
in the press, having so many
friends at Apple and other big
companies. And then just knowing
the industry inside and out.
I've just been able to do all
sorts of stuff inside revenue
cat. And so I don't have a super
defined job role. I mean, I kind
of do a lot of things that a
typical developer advocate
wouldn't do. You know, I mean, I
was hosting webinars, but but
not, you know, some of the
webinars, we'll talk about our
product. And then now we're
doing webinars more just kind of
broadly about, you know,
learning the business
fundamentals, you know, the
podcast, I actually have a
community called the sub club
community. And it's a private
community where we chat about
all things subscription app
related, and there's hundreds of
folks in there, you can get to
chat dots up club.com and sign
up for a waitlist, if that
sounds cool. So yeah, I've just
done all sorts of stuff inside
remedy can. And I think it does
make sense in that, you know,
really early in a company. You
need people who can wear a lot
of different hats. And as a
longtime entrepreneur, myself, I
was no stranger to wearing a lot
of hats. And so, you know, early
on, I was, you know, helping out
with product and just helping
with whatever folks needed and
beta tests, helping the beta
test features and writing
content. You know, I had written
a post on my personal blog years
ago called The Ultimate Guide to
subscription app testing. And
then we we ended up migrating
updating and migrating that blog
post onto the revenue cat blog.
And it's, it's been one of our
best performing posts we've ever
done from an organic stamp
organic search standpoint. So
yeah, I really kind of put my
hat in a lot of rings and just
pitched in in all different ways
I could over these these last
three years. So
Jeroen Leenarts: you could you
could condense it down to that
revenue cat came up to the point
they thought, Okay, we need
something to be a liaison
between our own developers and
the broader develop community.
And that's, that's a Developer
Advocate now start waving hands
in the air, Jacob, something in
that regards. And then they,
they came across you, an
entrepreneur with apps in the
App Store familiarity with the
subject matter of the company
being in app purchases and
subscriptions, you had a track
record of being able to show
that you can do all kinds of
different things so that you can
do what needs to be done to get
the work to the finish line. And
there was a position open and
you were willing, and that
combined. And then at a later
stage, the podcast became a
thing. They pitched it to you.
And it really sounds like it was
like, Hey, we have an audio
engineer, let's do a podcast Is
that about right? Oh, what's it
really,
David Barnard: it really isn't,
it was really more just a, you
know, so one of the taking a
step back. And this is actually
something that attracted me to
revenue cat as an employee
written out again, I started
contract actually didn't go full
time until just the spring, or
summer of 2021. So I've only
been full time for a year as a
as an actual employee versus
kind of a contractor. But one of
the things that attracted me to
the company is that our revenue
model is that we charge a
percentage of our customers
revenue. So we have different
plans with different amounts,
it's somewhere in the ballpark,
depending on what plan you
select. And then you might have
breaks for enterprise customers
get a lower rate. But it's in
the ballpark of 1%. And so you
know, we manage the transactions
track the revenue, it's we have
a figure called we call monthly
tracked revenue. So however much
revenue we tracked in our
system, we bill you based on
that, what that has done for us
is, we're highly incentivized to
help our customers make more
money. And so that was maybe
even the broader thesis behind
hiring me as well is that if and
starting the podcast and
building the community, and so
much of what I do, ends up being
about helping our customers make
more money. So by by
interviewing some of the top
folks in the subscription app
space by talking to people like
Curtis Herbert, who is
incredibly, you know, inspiring
story of an indie developer
success, you know, We're
inspiring our customers to to
follow those patterns to learn
from those things and grow their
businesses, which then in turn
directly affects our bottom
line. And so, you know, so much
of what we do ends up being very
highly aligned with our
customers, because of the way we
charge this customer. So, if we
charged as a lot of companies do
by user, so you know, I think
Mixpanel still charges per user,
will Mixpanel is not very
affordable for a freemium app,
because you have a ton of people
using it for free and only a
small portion pay. So there's a
real imbalance there, which I
actually used Mixpanel, for a
little while for one of my
freemium apps, and it was just
ridiculous, it was just way too
expensive. And then you have the
other side of a company like
amplitude where their billing
per API call or event or
packages, which I don't remember
exactly, and they, you know,
have evolved this over time. But
essentially, it's kind of a pay
per API call use, or pay per
event tract kind of usage. And
so then, you know, they're
highly incentivized to get you
to use more events, and you're
highly incentivized to use fewer
events, even if using more
events would actually be more
beneficial to your business. And
even though on their end,
tracking more events, isn't
really that much more expensive
incrementally.
And so, you know, with revenue
cat being aligned with our
customers revenue, the podcasts
just made a ton of sense. So,
you know, it probably is a
marketing channel for us, you
know, people hear about revenue
through the pipe revenue cap
through the podcast, they know
we're doing good work, they
know. You know, we're talking to
the the biggest apps in the App
Store and sharing strategies and
best practices and things like
that. So there, there is a
marketing component to it. But I
would say kind of the the even
more important thing to me
personally, and then probably to
revenue cat over the, you know,
five or 10 year time horizon is
that the more of our customers
and even just the subscription
app space broadly, that we can
aspire to build great
businesses, the better we're
going to be in the long run. And
so So yeah, it's it's been an
honor and an absolute blast to
to run the podcast and to talk
to really smart folks and get to
ask them all sorts of questions.
And you know, I reveal my own
naivety probably more than i i I
would like, you know, having
only ever worked on very small,
not especially successful apps,
I have a very different
perspective. But it's really
fun, you know, getting to talk
to people who work on apps that
do 10s, or hundreds of millions
of dollar a year revenue, and
really understand what it takes
to succeed at that level. And
kind of the different ways that
those companies operate, then an
indie developer does. But again,
it's like we talked to people
all up and down that spectrum.
Because even you know, smaller
developers have incredible
stories to learn from and have
strategies that can can be
pushed up to more successful
apps. And then there's more
successful apps sometimes have
strategies that can work for,
you know, a startup that's just
getting going. So it's, it's
been so fun to chat with so many
people in the industry and learn
so much from them along the way.
Jeroen Leenarts: Okay, well,
that basically covers two of the
questions I had on my list. So
we're checking them off right
now. So just to give a short
recap, revenue cat as a company
is very interesting for an end
user or developer to get
involved with because they are
incentivized to help you along
your journey to grow your
revenue, so that they can take
that 1% cut off that revenue. So
if you as an individual grows,
then their revenue grows as
well. So that's why the
incentives for revenue cat and
you as an app developer date
align very nicely. And also the
the payment requirements that
they put on you as a customer is
very decent, I think just taking
away a lot of headache for for
less than a percent is sounds
like a good deal to me, right?
And then there's the sub club
podcast that's it's run by you,
for revenue cat. And the gimmick
of sub club podcast is that it
actually goes into the details
and the nitty gritty of what it
can actually take to to build an
app store based business either
through in app purchases or
subscriptions. What are the
difference between the two? When
should you consider your
options? And what options do we
actually have? And what does it
take to actually grow beyond a
certain level, you know, we all
have the tip jar in our in our
own little apps. But once you
really grow, and you you get
customers and you have
subscriptions, and you're
dealing with churn, and you want
to make sure that you keep your
churn, rate out, rate down, but
then also grow your customer
base, the strategies that are
involved there, and what kinds
of problems you can actually run
into there. Those are all talked
about in the sub club podcast, I
think. So not only technical,
but also on the business side of
things. I've been listening to
it for quite a while now. And
David Barnard: we probably focus
more on the on the business side
than the technical and
development side. And, you know,
we've had investment bankers on
we've had multiple VCs on who
focus specifically on
subscription abs. We have had
some developers on but we've
also had a lot of marketers like
consultants, you know, people on
all different sides of the
equation. And actually, I'm
scheduling one with a data
scientists. And that's going to
be a really fun episode, because
we're going to talk about, like,
what is data science for
subscription app? So yeah, I
really, I really enjoy getting
to cover a really kind of broad,
get a really broad set of
perspectives and ask a really
broad set of information of
questions to elicit different
perspectives on the industry
from from a VC who's investing
and what you need to do to
entice them to fund your app to
the you know, when you're when
you're huge thinking hire a
dedicated, you know, content
marketing person, like how do
you run that show? And so, kind
of like, you know, kind of
spreading it out across like so
many different functions in the
in the subscription app space.
Jeroen Leenarts: Okay, cool. If
people want to know more about
revenue cat, they should go to
revenue cats.com. If you're
interested in the sub club,
podcast, if you haven't heard
four, sub club.com Where can
people find you online?
David Barnard: Probably the best
is just Twitter. Like, don't
tweet a ton and rant about all
sorts of random stuff. But
that's where I do kind of talk
about app industry related
stuff. So Dr. Barnard on
Twitter.
Jeroen Leenarts: Okay, cool. I
think we covered everything that
we wanted to talk about David.
So unless you have something
else to add or share, I'd say
enjoy the rest of your day. And
I look forward to maybe someday
meeting you in person, you know,
somewhere.
David Barnard: Yeah, I wish I
was going to 360 I do have so we
to meet each other next week if
I were but but I'm not so maybe
WWDC next year or sure I'll be
over in Europe not too distant
future going to conferences and
whatnot so yeah I'd love to love
to chat in person sometime