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Do most 'other' apps make money?

There's something suspicious about the language/analysis.
Also, maybe $1000 or even $100 a month is meaningful for some developers, if they are beginners or students or living in a place where a dollar can buy a lot more. When I read "no money" my thought was, "how can they know what apps are profitable without knowing their expenses."

I think the big problem is Apple doesn’t allow proper upgrade pricing.
I agree. When I had my first successful app and feature requests started flowing in from users, I realized that "buy once, get updates forever" wasn't reasonable. I would have been happy to use the old business model where version 1.1 is free but version 2.0 is a paid upgrade, but the app stores don't make that possible.

Actually that's less practical anyway when data is syncing automatically between the apps and a website back-end; you want all the app versions to be consistent. After a few years I reluctantly switched to subscriptions and after 10 years I am still pumping out regular updates based on user requests (as well as hosting costs for user data storage, syncing, email and SMS notifications, etc). I also spend about a month each year fixing bugs caused by OS changes. There was a lot of complaining about the switch at first, but hardly anyone mentions this now.

Occasionally someone asks if they can buy a lifetime subscription, but it doesn't really pencil out. How many years worth of a subscription would make a fair lifetime payment? And how many years will users expect that to last for? Can I never retire? I think just paying for what you're using as long as you're using it makes more sense. If you let go of the principle that "subscriptions are bad" and look at the actual value for the money, it can be fine. If you find that an app you subscribed to isn't worth the subscription cost, you can cancel it.

As a consumer, the subscriptions I have a problem with are for products I rarely use. For example, I used Photoshop a few times a year, which was not enough to justify a subscription; so when they went subscription-only I switched to Affinity. I wonder if anyone offers options based on number of uses in cases like that. I have considered pricing my app based on usage, so you would get a bill at the end of the month rather than paying a fixed cost. I decided it was better to just have a simple and consistent price, but maybe I'll come back to that idea at some point.
 
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A subscription model TOTALLY HIDES that process of active thinking.
Doesn't the Apple app store notify you before a subscription renews so you can cancel it? That seems pretty ideal. I bounce between a few streaming TV sites and I wish they did that.

In my own app, I didn't use auto-renewals at all for a long time. You got a notification that your subscription was about to expire and you had to manually renew it. But some users asked for an auto-renewal option so I eventually added that ... with a notification before each auto-renewal payment.
 
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Also, maybe $1000 or even $100 a month is meaningful for some developers, if they are beginners or students or living in a place where a dollar can buy a lot more. When I read "no money" my thought was, "how can they know what apps are profitable without knowing their expenses."


I agree. When I had my first successful app and feature requests started flowing in from users, I realized that "buy once, get updates forever" wasn't reasonable. I would have been happy to use the old business model where version 1.1 is free but version 2.0 is a paid upgrade, but the app stores don't make that possible.

Actually that's less practical anyway when data is syncing automatically between the apps and a website back-end; you want all the app versions to be consistent. After a few years I reluctantly switched to subscriptions and after 10 years I am still pumping out regular updates based on user requests (as well as hosting costs for user data storage, syncing, email and SMS notifications, etc). I also spend about a month each year fixing bugs caused by OS changes.

There was a lot of complaining about the switch at first, but hardly anyone mentions this now. Occasionally someone asks if they can buy a lifetime subscription, but it doesn't really pencil out. How many years worth of a subscription would make a fair lifetime payment? And how many years will users expect that to last for? Can I never retire? I think just paying for what you're using as long as you're using it makes more sense. If you let go of the principle that "subscriptions are bad" and look at the actual value for the money, it can be fine. If you find that an app you subscribed to isn't worth the subscription cost, you can cancel it.

As a consumer, the subscriptions I have a problem with are for products I rarely use. For example, I used Photoshop a few times a year, which was not enough to justify a subscription; so when they went subscription-only I switched to Affinity. I wonder if anyone offers options based on number of uses in cases like that. I have considered pricing my app based on usage, so you would get a bill at the end of the month rather than paying a fixed cost. I decided it was better to just have a simple and consistent price, but maybe I'll come back to that idea at some point.
I think that data syncing can be handled gracefully if you plan for it in advance (with different versions of functions depending on which version of the app is running).

I do think that the speed with which Apple deprecates APIs has accelerated which is requiring more developer investment making subscriptions more necessary for long term fixes. However part of this is just that the prices are so low. If an app costs $99.99 its much easier to offer 3 years of support than it is if it costs $9.99
 
I’m a developer in that top 3% making over $10k per month. We use RevenueCat and they are awesome by the way.

Our app is called iCollect Everything. It’s an app to help manage collectibles and home inventory. Check it out on the App Store. We do the following:

- Users get to use the app 100% for free for the first 15-30 items they add into the app (depending on the collectible type they have). No restrictions. Right from the get-go.

- Once they hit the 30 item mark, we ask that they pay a one-time for life fee to unlock unlimited items for that collectible type. For a higher fee (deeply discounted) they can unlock all collectible types. One-time fee, for life.

- Once a user has unlocked unlimited items, a Pro tab appears. In the app this Pro tab has options that are for our most hardcore collectors… and it unlocks things that are OPTIONAL to use if they want. Desktop companion apps for Windows/Mac, extra themes, beta feature access, priority support, real-time estimated values on some collectibles, and more. It’s a yearly fee. But users don’t have to pay it! They can just completely ignore the tab and use the app for life if they want.

- We let people know that we’re simply a two-person company running this amazing app. And we respond to emails within 24 hours. Sometimes people tend to think we’re a big polished company, but when we let them know it’s just two best friends trying to make a living for their family, people are more likely to buy as well. Having that personal connection between developer and customer can go a long way, subscription or not. Many devs are just focused on money money money.

We’ve shown that it works really well when you give people options and you don’t bombard them upfront requiring subscriptions. Our growth and revenue has been crazy good this year, and people feel we provide value on a number of different tier levels depending on their needs. And I think most of our users who subscribe realize why they are paying the yearly fee… because what they are getting isn’t just a mobile app anymore, it’s a complete front-to-back multi-app service with features that aren’t easy to implement and do require maintenance.

I personally hate subscriptions too, so we try our best to only require it when the development work for us requires some type of recurring revenue too.

All of our main competition requires subscriptions no matter what, so I’m proud that we don’t do that and can be successful from it.
Just downloaded your app. Thank you!
 
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I’m a developer in that top 3% making over $10k per month. We use RevenueCat and they are awesome by the way.

Our app is called iCollect Everything. It’s an app to help manage collectibles and home inventory. Check it out on the App Store. We do the following:

- Users get to use the app 100% for free for the first 15-30 items they add into the app (depending on the collectible type they have). No restrictions. Right from the get-go.

- Once they hit the 30 item mark, we ask that they pay a one-time for life fee to unlock unlimited items for that collectible type. For a higher fee (deeply discounted) they can unlock all collectible types. One-time fee, for life.

- Once a user has unlocked unlimited items, a Pro tab appears. In the app this Pro tab has options that are for our most hardcore collectors… and it unlocks things that are OPTIONAL to use if they want. Desktop companion apps for Windows/Mac, extra themes, beta feature access, priority support, real-time estimated values on some collectibles, and more. It’s a yearly fee. But users don’t have to pay it! They can just completely ignore the tab and use the app for life if they want.

- We let people know that we’re simply a two-person company running this amazing app. And we respond to emails within 24 hours. Sometimes people tend to think we’re a big polished company, but when we let them know it’s just two best friends trying to make a living for their family, people are more likely to buy as well. Having that personal connection between developer and customer can go a long way, subscription or not. Many devs are just focused on money money money.

We’ve shown that it works really well when you give people options and you don’t bombard them upfront requiring subscriptions. Our growth and revenue has been crazy good this year, and people feel we provide value on a number of different tier levels depending on their needs. And I think most of our users who subscribe realize why they are paying the yearly fee… because what they are getting isn’t just a mobile app anymore, it’s a complete front-to-back multi-app service with features that aren’t easy to implement and do require maintenance.

I personally hate subscriptions too, so we try our best to only require it when the development work for us requires some type of recurring revenue too.

All of our main competition requires subscriptions no matter what, so I’m proud that we don’t do that and can be successful from it.
Fantastic! I may try your app. It could be useful for me.
 
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Why developers choose to use subscriptions in the first place when they can certainly choose to use one-time payment option! Most of them didn't make the app quality good enough to deserve subscription fees.
Because developers have to pay a subscription to Apple to keep their app in the app store.

On Android it's a one time $25 fee.
 
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Under this rubric, there’s no merit or point to open-source community-maintained software.

In this sense, I question your core argument.
The Open Source community are NOT trying to make money off their software. Their motivations for maintaining their software is either for fun for because they use it.

It's hard to justify having an app in the app store "for fun" when it costs money to keep in the app store .
 
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The Open Source community are NOT trying to make money off their software.

OSS code gets created for all kinds of reasons.

But, even for a hobbyist project, there's always a cost involved. Yes, Apple's annual fee adds to that, but you also have to factor in hardware purchases and other costs before you get to your own time, which will be by far the biggest cost factor.

 
The Open Source community are NOT trying to make money off their software. Their motivations for maintaining their software is either for fun for because they use it.

Good.

Now, draw a line between software which manages to work for several years and across several platforms, with regular security updates up-streamed, and not seeking to run with a rapid turnaround of making cash money; against “apps” (scare-quoted owing to the prevalence of many apps being Electron skins over an extant web portal) whose developers can either be bona fide and accommodating to their many users, or be fly-by-night-once-the-money-is-taken, and whose updates typically centre less around core stability improvements, wider compatibility, or security updates, and more around satisfying API changes which are constantly in flux and centred on user data usage telemetry and customizing the advertising experience.

It's hard to justify having an app in the app store "for fun" when it costs money to keep in the app store .

You’re correct.

The folly here is conceding the idea, once driven home by the “walled garden” ethos, that apps, in 2024, are only to be found/trusted/used when found within an app store and not from any other means — not even community-reviewed, community-tested, and community-maintained software with a transparent chain of accountability (i.e., nightly versioning, source code access/review, etc.). Accepting that concession as “normal” is a real devil’s bargain.
 
Apple would take the same commission fee for upgrades, so I can't see the difference, unless you wish for the developer to make less money.

Apple and developers are in the same boat. The more money developers make, the more money Apple makes.
Same commission percentage sure but if the upgrade is once in 2-3 years for a modest price then consumers will love it. Apple will hate it.

The more money developers make, the more money Apple makes. Of course that's what Apple wants but not the consumers (a.k.a subscription model). Before subscriptions there always used to be an upgrade fee for software. Minor versions supported but Major are not.
 
The more money developers make, the more money Apple makes. Of course that's what Apple wants but not the consumers (a.k.a subscription model).

Correction: the more money developers make, the more money Apple shareholders make.

None of this is, in the grand picture, customer-friendly — nor is it meant to be. In this model, customers and users are the remainder which make the above equation balance out, as envisioned.
 
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Most mobile apps with subscriptions do not make money, a new in-depth analysis finds.

iOS-App-Store-General-Feature-Clorange.jpg

The "State of Subscription Apps" report comes from RevenueCat (via TechCrunch), a prominent mobile subscription toolkit provider. With nearly 30,000 apps utilizing its platform for monetization management, RevenueCat is able to provide a reliable overview of the subscription app landscape thanks to its data collection capabilities. The analysis delves into data from over 29,000 apps and 18,000 developers, collectively responsible for more than $6.7 billion in revenue and over 290 million subscribers.

RevenueCat found that while the top-performing 5% of subscription apps amass revenue 200 times greater than those in the bottom quartile, the median monthly revenue for apps after one year is less than $50. Only 17.2% of apps cross the $1,000 monthly revenue mark. Reaching this milestone significantly boosts the likelihood of further financial growth, with 59% of these apps progressing to achieve $2,500 in monthly revenue, and 60% of those reaching the $5,000 mark. A mere 3.5% of apps achieve $10,000 in monthly revenue.

Health and fitness apps generate at least twice the revenue of all other categories combined, both in the bottom quartile and among the top 5% of earners. In contrast, travel and productivity apps face the most significant challenges, with even the top performers in these categories struggling to make over $1,000 per month after a year on the market.

Despite these statistics, the subscription app market continues to grow and the average price for monthly subscriptions has increased by 14% from $7.05 to $8.01. However, the report also noted a recent shift in consumer behavior, with a 14% drop in subscriber retention over 12 months.

Article Link: Report: Most Subscription-Based Apps Do Not Make Money
So often I am just shocked that developers think their Spicy Reminders app is worth ten bucks a month, forever.
 
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I can't believe people "subscribe" to a media player

Like .. what are we doing here?

Infuse had a lifetime price which works out to about 7 years of annual subscriptions. At the time, I wasn’t ready to pay the one lump sum for it yet, so I subscribed for a year, and have stuck with it since. Will I still be using it 7 years later? Who knows. Maybe the app gets discontinued. Maybe I find something better. Either way, $10 a year hardly breaks the bank.

I see people suggest VLC, but the app is seriously bad. Like I use it only for playing avi files which infuse doesn’t support, but it’s so barebones that it’s not really a replacement for anything.
 
I see people suggest VLC, but the app is seriously bad. Like I use it only for playing avi files which infuse doesn’t support, but it’s so barebones that it’s not really a replacement for anything.

Wait… you’re having issues with VLC? :: puts on troubleshooting brain-hat::

On what Macs, with which macOS builds, are you trying to use it? And on which versions of VLC?

Over the years of using many media players, many from open-source community projects (mplayer, ffmpeg, VLC, XviD, and so on), the principal issues I’ve experienced with VLC occurred typically when the latest versions available were for Tiger and Leopard only: they would have trouble decoding/playing several video codecs (all of this before HEVC or AV1). The Tiger version (0.8.6i) excepted, which worked under very specific conditions, issues around video playback centred less on software and more on limits of single- or dual-CPU (not dual-core) systems with fairly limited clock speeds and lacking the decoding power to decompress newer, more efficient codecs (like certain h.264 encodings and, almost invariably, h.265/HEVC).

Are you, by chance, finding trouble running VLC on iOS/iPadOS and not macOS?
 
Wait… you’re having issues with VLC? :: puts on troubleshooting brain-hat::

Are you, by chance, finding trouble running VLC on iOS/iPadOS and not macOS?

I was referring to VLC on iOS, not the Mac (the Mac version runs beautifully, and I prefer it over QuickTime). On my iPad, it’s not that I have issues running it. It’s just very limited in its functionality.

I don’t have a reason to use infuse on a desktop. On my iPad, it’s a a nice container for storing videos or streaming them from cloud storage.

Another app I like is Play, which is a way of triaging YouTube content.

And as a bonus, they both have Apple TV apps. Which I feel justifies the subscription model, if it means they are willing to support all Apple devices.
 
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Subscriptions for content: OK
Subscriptions for features: Not OK

I stoped buying apps for iOS / iPadOS because today we need a monthly insane subscription. Apple should review this. There’s many abuse on subscriptions.

As developer, why not an upgrade price for X.0.0 releases?
 
Great to read this news! Subscriptions only make sense for media-based apps that keep adding content, like Netflix, Spotify, Apple Music, etc.
I view a subscription as a way of saying "I support the developer in what they are doing, and wish to continue supporting them financially so they can continue to work on the app for the near foreseeable future".

Take for example an app like play. It is, at its very core, a RSS feed for YouTube videos. It doesn't generate any content of its own. However, I like that the developer (basically a 1-man show) is supporting it on the iPhone, iPad and Apple TV. I like that it supports the apple tv's up next feature. I appreciate the care that went into designing it, and it's constantly being updated with bug fixes and new features. I like being able to browse my feed and add videos to my watch list from my phone throughout the day, then view them on my Apple TV when I get home.

All this takes time and energy (especially when iOS updates sometimes break stuff. I know iOS 17.4 seems to have broken the way dark mode renders text on my iPad's YouTube app, and google has been very slow to remedy the issue). So I certainly appreciate it when developers hop on a reported issue and are able to address it with a degree of nimbleness that I don't see in companies like Google.

At $20 a year, it hardly breaks the bank for me. That's even less than the price of eating out for a single meal. Personally, I am a tad disheartened to see that even as people spend more on hardware, they seem even more reluctant to spend on good software, which is really what makes your hardware's capabilities shine.
 
I view a subscription as a way of saying "I support the developer in what they are doing, and wish to continue supporting them financially so they can continue to work on the app for the near foreseeable future".

Counterpoint: pre-app store models of revenue generation notwithstanding (keep reading), we now have Patreon as a way of supporting a creator. Creators include software developers. If their product, the application, shines, then the creator gets supported financially and incentivizes them to continue cultivating their work.

Personally, I am a tad disheartened to see that even as people spend more on hardware, they seem even more reluctant to spend on good software, which is really what makes your hardware's capabilities shine.

That is the nature of what app stores retrained end-users to value most. It is, of course, a devil’s bargain, in that “free” within those walled gardens ushers a considerable collection of user data. “Free” gets often coupled with ads and disabling subroutines which need to be “unlocked” (like a game achievement), via microtransaction, in order for a user-consumer to assess whether the unlocked version is all it was sold to be.

The app store model also facilitated disruption in the user-creator relationship with an aggressively, necessarily capital-oriented model.

It’s a model which, as a side-benefit, compensates developers in part for some of their work, but a disproportionate wedge of that revenue pie goes to the app store’s company and, thus, to shareholders whose fiduciary (and often solitary) interest is in extracting the most exchange-value possible from a revenue-generating structure, such as an app store (which is sold to shareholders as an efficient vehicle for delivering minimal exposure to “risk” for money they invested in ownership shares).

Developers were making money prior to the invention of app stores. They were doing so without ceding significant chunks of revenue to a third party. There were different models of generating that revenue: as solely commercial products; as shareware products; and as donationware products. Freeware was also an option, especially for fledgling developers who were offering what they coded on an as-is basis. (This is also how they found their swimming legs.)

What this also meant was there were fewer applications or utilities for aggregating, say, RSS feeds (when another application, like a browser, didn’t supply that as an integral feature). But those which delivered that feed in a very handy, standalone way had the grounds to adopt one of those three models of revenue generation, as they so sought.

Now, as many (though not all) applications are no longer actual binaries insomuch as they’re either Electron wrappers around a web portal or encapsulated scripts scarcely more sophisticated than an Applescript in a tidy, self-contained executable, the “app” ecosystem enables all manners of aggressive competition over the eyeballs of app store users.

[Sidebar: App stores also enable questionable activity by parties which use the app store model to overpromise, under-deliver, and charge for it as a requirement for an app user to access what was promised (whether or not the promise was true). Yes, an app store can kick and ban that party and yes, app stores have made public overtures to make that harder to pull off, but all that booted party needs to do is to sign on with a fresh profile to do the same, with a different “app”, once again. Expecting this fraudulent cycle is baked into their own moneymaking scheme. In some cases, this may include organized crime, better known as cyber-criminals.]

App makers, both legitimate and illegitimate, barrage search results to clamour to the top of a “download me first, and oh, if you like this, you can get the ‘pro’ version for $3.99” list. This doesn’t make it terribly straightforward for a user to figure out, as a glance, whether other apps can do the same task, but better, and without the smoke and mirrors of “free to try” or other tacit enticements attached (like user/usage telemetry whose disclosure of collection is often implied or “just a given”). Search results determine which apps get seen first, and search results can (and often are) paid for — sometimes as “Sponsored”, other times not.

Once, there may have been one or two, very well thought-out standalone RSS feed aggregators, and they did what they did well.

If there were two or three, they competed and improved on their products. Word of mouth got around, as did a search to find them (back when SEO was not yet a tool to game results and obviate the point of a search engine with an advertising engine). If they adopted a revenue model, they got paid by those who supported and appreciated their work. Banking exchange fees aside, they got nearly all of that support without a third party pulling out 20, 30, or even 40 per cent.

So yes, a reluctance for some to spend a few dollars on good software comes from a conditioning around oblique language like “free to try”, “free to play”, and “free*” (free-asterisk) as they pore through SEO-gamed search results in their app store — with variations on “free” bombarding them in most of the top search hits.

Entire generations, now hitting age of majority, have only ever been treated as “consumers, not as “users”. They have, generally, known of no other software model than an app store’s “walled garden”. Some older users, aware of other ways of doing developer-user business, know there are other ways of compensating good development, but nevetheless prefer the convenience of not having to put effort into finding them. Enter the app store.

There is no free lunch. App store middle-players — Apple, Google, Samsung, Epic — want developers to know that acutely and would prefer consumers not be reminded of it. Consequently, app makers, some of them bona fide developers, now fight each other over consumer eyeballs. It’s a race to the bottom for getting those eyeballs. Shareholders, via the company, stand to benefit over all this. Consumers get left with illusion of choice and, in most cases, are going to be drawn to whichever app offerer is best at grabbing those eyeballs — not the best tool for the job.

We made our bed like this. That means having to sleep in it. This is not a sustainable or healthy bargain for either bona fide developers or for end users.
 
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