🧠💰 Why Adding Friction Made BetterHelp $1 Billion

The response to last week's post was incredible, hundreds of messages from founders, designers and marketers. Thank you so much!

Eleven months ago, we set out to solve something that drives us all crazy: launching campaigns blind, burning budget on messaging that doesn't work, waiting weeks for customer feedback.

We had a simple vision: growth should feel magical.

Know which campaigns will convert before launching. Get customer feedback without waiting for customers. Cut the guesswork, eliminate the waste.

We're building it with Atlas, and it's almost ready.

MasterClass have a new homepage design that drastically increases revenue.

But before showing you...

Q: Name the #1 problem with the current design?

Version A: Old Homepage

Take a minute to think. Got it? Scroll down...

There's more than one problem...

But the main one is the high commitment barrier.

We've all been there…

You land on an interesting page, but the only way to learn more is to click "Sign Up."

Every user knows this means handing over personal details and potentially paying. It's a big step, and from the homepage alone, it doesn't do an amazing job convincing you why you should take that leap.

Q: So how did MasterClass solve this?

Try to imagine a better solution The new approach below...

They created a quiz funnel, but... 4 key changes stand out:

1. 🎯 Low commitment start: They start with a simple question about what you're looking for, no contact info or payment details, leveraging the sunk cost bias.

2. 📚 Showcasing Value Better: While users might check out the homepage a $180/year subscription for one specific course can be a bit expensive. In their onboarding they show that a subscription gets you unlimited access to all 200 courses and asks you questions to show other courses you might be interested in.

This improves the perceived value with users thinking they may find 4-7 relevant courses, making it easier to justify the cost.

3. ⏰ Objection handling: Address time constraints proactively They ask "How much time do you want to spend learning?" then immediately show how their format works for ANY schedule—whether it's 30 minutes or 2+ hours per week.

4. 🔄 Labor illusion: Loading screens that build perceived value just like Expedia showing "searching 500+ airlines," MasterClass shows "understanding your goals, selecting your top content, building your results." This makes users perceive higher value in the personalized recommendations they're about to receive.

Why This Beats "Reduce Friction" Thinking

Most product teams obsess over removing steps and shortening signup flows.

But companies generating billions have learned: Strategic friction increases willingness to pay.

• BetterHelp ($1B+ revenue): Starts with goals → builds to therapy matching

• Noom: Weight goals → personalized meal planning

• Hims: Health concerns → treatment recommendations

• Flo Health: Cycle needs → comprehensive health insights

When you ask for payment immediately, you compete on price. When you first help users understand their problem and quantify the solution value, you compete on value.