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Talking about run rates in the first 6 months is iffy. The run rate difference between #5 and #26 (where they are now on the Mac App Store) grossing are huge.
by webwright 14y ago
Talking about run rates in the first 6 months is iffy. The run rate difference between #5 and #26 (where they are now on the Mac App Store) grossing are huge. Order of magnitude huge. How much of that $500k was when they were featured and making their initial splash? What's their daily run rate now at #26? What's the trend? I'd wager it's been down steadily if it's anything like the iOS app store.
I don't know about the Mac App store, but on the iPhone, their daily revenue was in a state of decline. There is SO much gravity in the app store. Stuff falls-- it's the natural state for almost all apps unless you have an ARPU or some marketing hack to counteract it.
I'm not saying they were in a crappy position-- though I'm not sure that a $2.99 / $9.99 email client is a good business bet for 5 engineers. Email is complex/weird and users will want support-- with a LTV of $2/$6, it's really hard to afford to support them well. You can't afford marketing. You're competing with $200k comp packages for your team.
- stevenwei 14y agoThe Mac App Store has a lot less competition and high quality apps have a lot more staying power compared to the iOS App Store. There are fewer apps to crowd you out of the market, and the high quality ones (of which Sparrow definitely qualifies) stand out a lot more.