Only 20% of mobile apps crack $12k in ARR

RevenueCat seems like a savvy, well-run business for mobile app developers trying to subscription payments in the land of native in-app purchase APIs. Every year they take the data on their platform and publish a survey of the results. Granted, there's definitely a selection bias at play—certain kinds of developers are surely more inclined to run their payments through a third-party as opposed to Apple's own APIs.

That said, it's a large enough sample size that the headline results are, as Scharon Harding at Ars Technica put it, "sobering". From the report itself:

Across all categories, nearly 20 percent reach $1,000 in revenue, while 5 percent reach the $10,000 mark. Revenue drop-off is steep, with many categories losing ~50 percent of apps at each milestone, emphasizing the challenge of sustained growth beyond early revenue benchmarks.

Accepted without argument is that subscription-based apps are the gold standard for making money on mobile, so one is left to surmise that these developers are way better off than the ones trying to charge a one-time, up front price for their apps. And only 5% of all of subscription apps earn enough revenue to replace a single developer salary for any given year.

Well, if you've ever wondered why some startup didn't have budget to hire you or your agency to build a native mobile app for them, here you go. Outside free-to-play games, the real money is going to companies that merely use mobile apps as a means of distribution and who generally butter their bread somehow else (think movie tickets, car insurance, sports betting).

Anyway, super encouraging thing to read first thing while sitting down to map out this subscription-based iOS app I'm planning to create. Always good to set expectations low, I guess.