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It doesn't matter if it's games or not games. These numbers ring basically true to me. I've done enough apps that the math doesn't work out to me anymore. Simp
by programminggeek 12y ago
It doesn't matter if it's games or not games. These numbers ring basically true to me.
I've done enough apps that the math doesn't work out to me anymore. Simply put, you're selling candy bars, but without the disposable aspect, so your customer LTV on a $1 app is $0.7. If you have a suite of 5 or 10 $1 apps, even if you had a huge cross sell of 5 of those 10 apps, your LTV is 70% of $5... $3.50.
In that scenario, to get paid $70,000, you need 20,000 customers to buy 50% of your products each year.
Honestly, if you can get 20,000 to buy your app you've either hit a top list or you are so good at marketing that it is nonsensical that you would be selling $1 apps.
So yeah, for most developers the app store business isn't much of a business at all. Maybe leveraging it to get interest in desktop or console apps where the per unit price is closer to $20-100 would help.
Even then, I don't think you will see or hear many stores about app store millionaires going forward. The money might be there, but it's too diluted to make much of a dent.
Might as well buy a lottery ticket, it costs you less time and money with basically the same outcome.