Paywalls: Balancing User Experience and Revenue Growth

Company
RubyLife
Product
Ashley Madison
Segment
Dating
Role
Product Designer
Research Methods
Competition analysisUser interviewsSurveysA/B Testing
Ideation
WorkshopsUser journeysUser flowsPaired sketching

The Challenge

The platform was facing two issues:

  • Female users were overwhelmed with a high volume of low-quality messages and requests, diminishing their experience
  • Many male users, though interested, lacked a clear incentive to upgrade their accounts to the full paid version
Inbox full of automatic messages from the platform

The Goal

To create a monetization system that improved platform quality and increased revenue without compromising user experience. Specifically:

  • Reduce spammy or low-effort interactions
  • Encourage high-intent behavior from male users
  • Introduce a fair and intuitive paywall system
  • Increase conversions without disrupting user experience

Research

We combined user interviews, surveys, and competitive analysis to understand where the platform's incentives were breaking down:

  • Female users cited message fatigue - Interviews and surveys pointed to a flood of low-effort, automated-feeling messages as the top complaint
  • Male users lacked a clear reason to upgrade - Without a natural trigger, buying credits felt optional rather than necessary
  • Competitors staged their paywalls - Competitive analysis showed successful platforms introduced limits only after users had already invested time in the product, not on day one

These insights shaped a strategy built around timing, transparency, and scarcity—rather than blocking access outright.

Solution

Paywall 1: Early Expectation Setting

Immediately post-signup, users were introduced to Ashley Madison’s credit-based messaging system, which:

  • Set expectations early that meaningful actions require credits
  • Expectations prevented later friction and improved transparency
  • Pricing tiers were displayed when exploring credit package options
onboarding screens stacked with the new paywall
Paywalls 2 & 3: Scarcity-Driven Conversions

We then modified two previously unlimited features, Private Key Requests & Winks, with the following:

  • Limited to 3 free requests per day
  • Further winks prompted a subtle paywall modal
  • Additional requests required credits
wink flow
Key Design Decisions
  • Three Free Actions Per Day - Encouraged trial but created enough scarcity to prompt upgrades
  • Deferred Paywall Activation - Let users explore and interact before introducing any friction
  • Soft Language and Design - Reinforced platform value instead of hard-selling credits
  • Consistent UI Across Paywalls - Used a unified style and copy tone to reduce cognitive friction
wink flowwink flow with creditswink flow with no credits

Results

For Female Users
  • Fewer low-effort interactions
  • Higher quality engagement
  • Less spam and increased satisfaction
For Male Users
  • More selective and intentional interactions
  • Increased response rates from female users
  • Clear upgrade path with understandable value
Business Impact
  • Notable increase in monthly recurring revenue
  • Improved user retention, especially among high-intent users
all paywall screens

Lessons Learned

  • Scarcity works best when timed right - Users are more likely to convert when they’ve already invested effort
  • Transparency improves trust - Introducing the credit system up front minimized confusion and churn
  • A better user experience drives monetization - Prioritizing quality interactions over volume strengthened both user satisfaction and business performance

Next Steps

With the initial implementation successful, we started to explore:

  • A/B testing alternate daily limits (2 vs. 3 vs. 5)
  • Possibly restricting other parts of the website until a user has a positive credit balance
  • Bundled incentives (e.g., credits + Prime) for high-intent users
  • Analytics improvements for tracking conversion by user segment