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Case · Yourtunes

Rebuilt unit economics, repriced the plans and got the company ready to scale

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Context

Yourtunes is a platform that helps musicians distribute their tracks to every major streaming service, iTunes and Spotify among them.

The company keeps only its operating costs, bank fees for example, and sends 100% of royalties on to the artists.

After a successful seed round the team faced the next challenge: prove the model scales and get ready for conversations with investors.

The task

The founders already ran detailed analytics: monthly customer inflow, average check, conversion by channel. It was not enough to scale aggressively.

What was needed:

  • unit economics that account for how different cohorts behave;
  • an understanding of how users react to plan changes and new features;
  • retention, churn and LTV measured, so the financial model for investors is accurate and the capital need can be calculated

What we did in a month of consulting

  • Collected and structured a large body of historical data on customer actions: sign-ups, payments, moves between plans
  • Built user cohorts by year, by plan and by acquisition source
  • Identified the key metrics: LTV, churn rate, retention, and average artist income by category
  • Compared behavioural patterns across groups: who started on the free plan, who bought annual straight away, how each reacted to royalty payouts
  • Rebuilt the financial model on that analysis and prepared the templates for ongoing monitoring
Cohort analysis of users LTV and retention by plan Financial model by scenario Templates for ongoing metric monitoring
Examples of what the work looked like inside
You will appreciate, of course, that the numbers are not real. This is highly sensitive information, so we replaced it with dummy data

Insights for the client

  • Confirmed it: the unit economics do add up, the model holds
  • Found hidden revenue upside in reshaping the plan line-up and delivering value faster
  • Recommended switching off a plan that made no money and rebuilding the structure of the rest
  • Framed hypotheses on how to retain customers who had paid once but were at risk of leaving the following month

Instead of a conclusion

Startups often see only the top-level metrics: revenue, user inflow, conversion.

Real growth shows up when you dig deeper:

  • look at how cohorts behave,
  • analyse retention and churn,
  • understand how specific plans move LTV.

Thank you for the work you did 🙌
It was valuable to dive into the data together and turn different parameters in real time.
Happy with the results, ready to move on to the next task 😉

Mikhail ShorinCEO & Founder, Yourtunes

Interested?

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