{"id":535,"date":"2025-03-24T19:41:24","date_gmt":"2025-03-24T19:41:24","guid":{"rendered":"https:\/\/www.techrepublic.com\/?p=4299474"},"modified":"2025-03-24T19:41:24","modified_gmt":"2025-03-24T19:41:24","slug":"bad-news-for-app-developers-most-apps-fail-to-hit-1000-monthly-revenue-within-two-years","status":"publish","type":"post","link":"https:\/\/blog.tecnoartesanos.com\/index.php\/2025\/03\/24\/bad-news-for-app-developers-most-apps-fail-to-hit-1000-monthly-revenue-within-two-years\/","title":{"rendered":"Bad News for App Developers: Most Apps Fail to Hit $1,000 Monthly Revenue Within Two Years"},"content":{"rendered":"<figure id=\"attachment_4299476\" aria-describedby=\"caption-attachment-4299476\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4299476\" src=\"https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers.jpg\" alt=\"The woman is tired at work.\" width=\"1400\" height=\"900\" srcset=\"https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers.jpg 1400w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-300x193.jpg 300w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-1024x658.jpg 1024w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-768x494.jpg 768w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-50x32.jpg 50w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-770x495.jpg 770w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-370x238.jpg 370w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-270x174.jpg 270w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-740x476.jpg 740w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-540x347.jpg 540w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-1110x714.jpg 1110w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/tr_20250324-news-apps-revenue-developers-810x521.jpg 810w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\"><figcaption id=\"caption-attachment-4299476\" class=\"wp-caption-text\">Image: sun_mio\/Envato Elements<\/figcaption><\/figure>\n<p>AI-powered apps are outperforming several legacy categories and see revenue per install above 63 cents after 30 days, matching health &amp; fitness apps at the same rate, according to RevenueCat\u2019s State of Subscription Apps 2025 of over 75,000 apps on its platform.<\/p>\n<p>\u201cUsers are willing to pay more for meaningful AI-driven experiences \u2014 but simply adding AI isn\u2019t enough,\u201d said Jacob Eiting, chief executive officer of RevenueCat. Developers must build something that is \u201cunique and sticky,\u201d he said.<\/p>\n<p>The report examined data from 2024 and found that \u201csubscriptions alone don\u2019t cut it any longer,\u201d and 35% of apps now mix subscriptions with consumables or lifetime purchases, a trend that is growing, Eiting wrote separately in a <a href=\"https:\/\/www.revenuecat.com\/blog\/company\/the-state-of-subscription-apps-2025-launch\/\" target=\"_blank\" rel=\"noopener\">blog post<\/a>.<\/p>\n<p>\u201cHybrid monetization models are a strong way to capture more revenue without losing the benefits of subscriptions,\u2019\u2019 Eiting said, noting that gaming (nearly 62%) and social &amp; lifestyle (39%) are \u201cleading the way.\u201d<\/p>\n<p>One of the main findings is that most apps fail to garner $1,000 in monthly revenue within their first two years. The median number of days to reach $1,000 is 60, according to the report.<\/p>\n<aside class=\"pinbox right\">\n<h3 class=\"heading\">Must-read developer coverage<\/h3>\n<\/aside>\n<h2><span class=\"ez-toc-section\" id=\"A_widening_revenue_gap_between_top_apps_and_the_rest\"><\/span>A widening revenue gap between top apps and the rest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The top 5% of newly launched apps make $8,880 in earnings \u2013 over 400x as much revenue after two years as the bottom 25%, which make no more than $19, <a href=\"https:\/\/www.revenuecat.com\/state-of-subscription-apps-2025\/\" target=\"_blank\" rel=\"noopener\">according to the report<\/a>. \u201cThis gap has widened dramatically since last year\u2019s 200x difference, proving that the best apps optimize pricing, iterate fast, and retain users better,\u2019\u2019 the report said.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_app_categories_users_download_to_trial\"><\/span>Top app categories users download to trial<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The report shows that health and fitness including medical apps are most often purchased for trial (24%), followed by utilities including weather, reference, and finance at 23%, education (21%) and photo &amp; video (20.5%).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cancellations_within_one_month\"><\/span>Cancellations within one month<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nearly 30% of annual subscriptions are canceled in the first month, according to the report. \u201cIf you don\u2019t win them back over, at the end of that first year, they\u2019re gone,\u2019\u2019 Eiting said. \u201cThe most successful apps engage early and continuously deliver value, giving users reasons to stick around long enough to renew.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Monthly_vs_annual_plans\"><\/span>Monthly vs. annual plans<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Monthly subscriptions drive the highest reactivation rates, likely due to lower commitment barriers, the report said, followed by weekly plans at nine percent, while yearly plans \u201cstruggle.\u201d<\/p>\n<p>In terms of categories, photo &amp; video and productivity lead in monthly reactivations, while gaming underperforms, and the report speculates that this may be due to player fatigue. Shopping also struggles, possibly because of limited recurring engagement, the report said. Media &amp; entertainment and photo &amp; video show the strongest reactivations as both benefit from continuous content refreshes, the report said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image: sun_mio\/Envato Elements AI-powered apps are outperforming several legacy categories and see revenue per install above 63 cents after 30 days, matching health &amp; fitness apps at the same rate, according to RevenueCat\u2019s State of Subscription Apps 2025 of over 75,000 apps on its platform. \u201cUsers are willing to pay more for meaningful AI-driven experiences [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":536,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - 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