“With annual subscriptions you might not really understand just how bad your retention is until 12 months later... you're getting people who are willing to pay money to try it out but then don't retain, and so you're getting a lot of mixed signals.”

Hard Paywalls Mask Bad Retention — Annual Subs Hide Churn For 12 Months

Jeff Morris's core warning for founders using hard paywalls: annual subscriptions create a 12-month blind spot where churn is invisible. You collect revenue from people who won't renew, mistake it for product-market fit, and only discover the damage a year later. Engagement and retention signals, not early revenue, tell the real story.