{"id":26724,"date":"2019-09-27T14:42:03","date_gmt":"2019-09-27T18:42:03","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=26724"},"modified":"2019-09-27T14:42:03","modified_gmt":"2019-09-27T18:42:03","slug":"subscribers-are-your-true-fans","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2019\/09\/27\/subscribers-are-your-true-fans\/","title":{"rendered":"Subscribers Are Your True Fans"},"content":{"rendered":"

David Barnard<\/a> (tweet<\/a>):<\/p>\n

Paying once for an app really only makes sense if the app provides minimal functionality of limited value and won’t benefit from continued improvement.<\/p>\n

[…]<\/p>\n

With paid apps, people often end up buying several apps just to figure out which one best fits their needs. Let’s say they spent $3 each on 4 apps, that’s $12 they were willing to pay for a great app, but that great app they settled on only gets $3. Since most subscription apps have free trials, and many even have ad supported free tiers, people can try multiple apps and then only pay for the one they actually use.<\/p>\n

[…]<\/p>\n

Sure, some potential customers (or existing customers if you transition from another business model to subscriptions) are going to complain about the subscription model. It’s hard to hear someone tell you that they don’t value what you’ve built, but the smart thing to do is focus on the people who are<\/em> subscribing, your true fans. Figure out who they are and look for ways to reach more people like them instead of focusing on the vocal minority that complain.<\/p><\/blockquote>\n\n

Julian Schiavo<\/a>:<\/p>\n

\n

My apps been rejected with a short message basically saying ‘your app can’t use auto renewing subscriptions’, any tips\/experience on this? All the other apps of this type use auto renewing subscriptions 🤷‍♂️<\/p>\n<\/blockquote>\n\n

Reginald Braithwaite<\/a>:<\/p>\n

\n

The simple model I keep in my head, is that your revenue model should parallel your expense model.<\/p>\n

If they don’t, you’re both running a business AND engaging in arbitrage. That’s two things you have to get right, instead of one.<\/p>\n<\/blockquote>\n\n

David Barnard<\/a>:<\/p>\n

\n

This tweet reminds me of a chart by \n@macguru17. When you’re building an app, even one that doesn’t have ongoing costs like weather data or servers, the cost of continued development keeps putting you underwater before each update.<\/p>\n

I don’t think most people realize how much most indie developers sacrifice to keep the lights on. In 11 years, I’ve probably only been cash flow positive 48 months. With paid apps, I’d build up a war chest with a big launch\/update\/sale, then spend it down working on the next.<\/p>\n

I’ve even gone into debt to squeak by until the next big update. People seem to think all developers are rich & greedy. But it’s like any other small business. Most struggle, some do well, a few really well. But businesses don’t drop prices because they are doing well. 🙃<\/p>\n<\/blockquote>\n\n

Previously:<\/p>\n