As Tinypass Grows, Clients See 2.7% Conversion Rates

Tinypass, an e-commerce platform that allows online publishers to set-up metered paywalls, just announced that it raised $3 million in funding led by investment firms

Tinypass, an e-commerce platform that allows online publishers to set-up metered paywalls, just announced that it raised $3 million in funding led by investment firms Cascabel Management and Plough Penny Partners.Tinypass has been growing steadily since its initial seed funding of $1.2 million in 2012. In fact, the company grew its client base from 45 clients in January to now 250.One of the reasons for that growth — other than funding — has been the company’s metered paywall system. Andrew Sullivan’s The Dish is so far the company’s most visible client, but other B2C online publications seem to be adopting the platform given it’s ease of use.However, ease-of-use, while desirable, is not the only factor subscription site publishers should take into account. Much like Press+, Tinypass has a very branded look, instead of matching the look and branding of their clients’ sites. This is always a problem as consumers are less likely to convert if they feel they are being taken away from the site they’re interested in.But on the plus side, CEO Trevor Kaufman reported that Tinypass clients are getting 2.7% conversion rates (I assume on average), which is very good, and on the higher end of the 1%-3% range reported by subscription marketers in our 2013 Online Subscription Benchmark Report.An earlier version of this story incorrectly stated that Tinypass started with a “tip jar” and then created a paywall system, when in fact the company started with a paywall platform.

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