Caveduck partnered with MAF to give non-paying users new ways to keep chatting with AI characters while still driving revenue. By integrating the MyChips offerwall, the platform saw a 134% increase in incremental revenue and a 66% boost in ARPDAU, all while improving user satisfaction.
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Incremental revenue
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ARPDAU
Background
Company
Caveduck is an online platform for chatting with AI characters, developed by Warp Space Corp. It allows users to design, interact with, and share digital personalities through natural conversations. Launched in 2023 with the mission to help people connect with virtual friends across diverse themes, the platform quickly gained traction. Today, it’s especially popular in the US, Korea, and Japan, with over 800,000 registered users.
Challenges
Freemium Model
Caveduck operates on a freemium model, giving users daily Feathers (the website’s basic currency) to chat with their preferred AI characters. Once these run out, users can purchase Wings (the premium currency) to continue conversations or unlock premium models. Alternatively, they can subscribe to a membership plan that offers unlimited monthly access to basic models.
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Monetization Block
As with many freemium platforms, the majority of users rely on the free tier, even when it doesn’t fully meet their needs. While Caveduck’s strong user base showed clear interest in longer, deeper interactions with AI chatbots, the paywall created friction. The company needed a way to let non-paying users engage more with the platform, improving their overall experience while still driving monetization.
Solution
Rewarded Model Expansion
Due to Caveduck’s referral rewards, they noticed that users were willing to invest time instead of money in exchange for Feathers. Showing potential for a rewarded monetization strategy. To explore this, Caveduck partnered with MAF and integrated the MyChips offerwall into their website. With MyChips, web-based users could earn extra Feathers by engaging with offers, such as exploring new games or brands. Giving them more opportunities to keep chatting with their favorite AI characters without the need to pay.
Results
Users embraced the model from day one. By giving non-paying users a free way to extend their experience, Caveduck boosted both satisfaction and revenue. The integration led to a 134% increase in incremental revenue and a 66% increase in ARPDAU, turning previously non-monetized users into a new revenue source.
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