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    Home » Blog » Bad News for App Developers: Most Apps Fail to Hit $1,000 Monthly Revenue Within Two Years

    Bad News for App Developers: Most Apps Fail to Hit $1,000 Monthly Revenue Within Two Years

    March 24, 2025Updated:March 24, 2025 Tech No Comments
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    According to RevenueCat’s State of Subscription Apps 2025 of over 75, 000 software on its platform, AI-powered software outperform some traditional classes and earn above 63 percent after 30 time. They also rank above 63 cents after 30 days.

    People are willing to pay more for engaging experiences that use AI, according to RevenueCat’s CEO Jacob Eiting, who added the company’s chief executive officer. He said that builders has create something that is “unique and sticky.”

    According to the report,” subscriptions alone don’t cut it any longer,” and 35 % of apps now mix subscriptions with consumables or lifetime purchases, a practice that is expanding, Eiting wrote separately in a blog post.

    According to Eiting,” Hybrid monetization models are a powerful way to capture more revenue without sacrificing the advantages of subscriptions,” noting that “gaming ( nearly 62 % ) and” social & lifestyle” ( 39 % ) are” leading the charge.

    Most programs fail to make$ 1, 000 in quarterly profit within their primary two years, according to one of the major results. According to the report, 60 days are the average number of days needed to make$ 1, 000.

    Must-read engineer coverage

    A growing income gap between the top apps and the remainder

    The top 5 % of newly released apps earn$ 8, 880 in earnings, or 400 times as much as the bottom 25 %, which earn no more than$ 19, according to the report. This disparity has grown significantly since last week’s 200x difference, demonstrating that the best apps optimize prices, iterate quickly, and keep users much, according to the report.

    Major app categories users try out for free

    According to the report, health and fitness, including medical apps, are most frequently purchased for trial ( 24 % ), followed by utilities like weather, reference, and finance ( 23 % ), education ( 21 % ), and photo and video ( 20 % ), and photo and video ( 20 % ).

    refunds made within a fortnight

    According to the report, almost 30 % of annual subscriptions are canceled in the first quarter. Eiting said,” If you don’t get them back, at the end of that first year, they’re gone.” The most effective programs get users interested before they can buy more and consistently deliver value.

    plans for regular versus annual amounts

    According to the report, monthly membership account for the highest reactivation charges, which are most likely caused by lower commitment requirements, followed by weekly plans, which account for 9 %, and yearly plans struggle, respectively.

    In terms of categories, image & video, productivity, and productivity account for the majority of regular reactivations, while gaming, which the report speculates may be a result of, performs worse. Shopping even struggles, the statement said, maybe as a result of a lack of recurring wedding. According to the report, media and entertainment and pictures and entertainment experience the most strong reactivations because both parties benefit from constant material refreshes.

    Source credit

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