Most Apps Fail to Hit $1,000 Monthly Revenue Within Two Years

Most Apps Fail to Hit $1,000 Monthly Revenue Within Two Years

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AI-powered apps are outperforming a number of legacy classes and see income per set up above 63 cents after 30 days, matching well being & health apps on the identical price, in response to RevenueCat’s State of Subscription Apps 2025 of over 75,000 apps on its platform.

“Customers are keen to pay extra for significant AI-driven experiences — however merely including AI isn’t sufficient,” mentioned Jacob Eiting, chief government officer of RevenueCat. Builders should construct one thing that’s “distinctive and sticky,” he mentioned.

The report examined information from 2024 and located that “subscriptions alone don’t minimize it any longer,” and 35% of apps now combine subscriptions with consumables or lifetime purchases, a pattern that’s rising, Eiting wrote individually in a weblog put up.

“Hybrid monetization fashions are a robust method to seize extra income with out shedding the advantages of subscriptions,’’ Eiting mentioned, noting that gaming (practically 62%) and social & way of life (39%) are “main the way in which.”

One of many essential findings is that the majority apps fail to garner $1,000 in month-to-month income inside their first two years. The median variety of days to succeed in $1,000 is 60, in response to the report.

A widening income hole between prime apps and the remainder

The highest 5% of newly launched apps make $8,880 in earnings – over 400x as a lot income after two years as the underside 25%, which make not more than $19, in response to the report. “This hole has widened dramatically since final 12 months’s 200x distinction, proving that one of the best apps optimize pricing, iterate quick, and retain customers higher,’’ the report mentioned.

Prime app classes customers obtain to trial

The report exhibits that well being and health together with medical apps are most frequently bought for trial (24%), adopted by utilities together with climate, reference, and finance at 23%, schooling (21%) and picture & video (20.5%).

Cancellations inside one month

Almost 30% of annual subscriptions are canceled within the first month, in response to the report. “If you happen to don’t win them again over, on the finish of that first 12 months, they’re gone,’’ Eiting mentioned. “Probably the most profitable apps have interaction early and repeatedly ship worth, giving customers causes to stay round lengthy sufficient to resume.”

Month-to-month vs. annual plans

Month-to-month subscriptions drive the very best reactivation charges, probably as a consequence of decrease dedication obstacles, the report mentioned, adopted by weekly plans at 9 %, whereas yearly plans “battle.”

By way of classes, picture & video and productiveness lead in month-to-month reactivations, whereas gaming underperforms, and the report speculates that this can be as a consequence of participant fatigue. Purchasing additionally struggles, probably due to restricted recurring engagement, the report mentioned. Media & leisure and picture & video present the strongest reactivations as each profit from steady content material refreshes, the report mentioned.

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roosho Senior Engineer (Technical Services)
I am Rakib Raihan RooSho, Jack of all IT Trades. You got it right. Good for nothing. I try a lot of things and fail more than that. That's how I learn. Whenever I succeed, I note that in my cookbook. Eventually, that became my blog. 
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