ricky0603•This week
What I learn from my $200 MRR App I built 4 months ago
4 month ago, I am just a 10-years experienced product manager without any software development experience. I have an $3K/month job, but I am so tired, I don’t like my life, don’t like my boss, don’t like my daily work, that make me feeling I already died however I am still living.
I yearn for freedom and want to live each day the way I want to. So I quit my job, and become a Indie developer to build my own business, my own app, even my own life.
I am so grateful for this time and experience, now my app reach $200 MRR, still very little compared to my previous salary, but I never regret.
I have learned lots of things from this time and experience, more than I had in last 10 years.
Here is the time-line of my App:
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Sep 2023: Launch first version to iOS App store
Oct 2023: Release in-app-purchase features and have first subscriber, the revenue in October is $154
Nov 2023: Change from subscription to pay per use, and I did lots of marketing jobs in November, however, the revenue reduced to only $40.
Dec 2023: Change back to subscription, and stop some invalid marketing jobs, only keep the ones that actually work. I almost did nothing in December, and the revenue come to $243.
During this process, I have learned lots of things, there are some of them that I think could help you as well.
Web or App
My App is an iOS app that only can running on Apple’s device such like iPhone/iPad or Mac with Apple silicon. Many people ask me why my product is an iOS app not a website, because they don’t have any Apple device. It's true that promoting an app is much harder than promoting a website. However I am now very glad I made an App and not a website! If I make a website, I don't think it's possible to make $100 in the first month.
My App is about keyword research, to help people find some ideas from search keyword, because every keyword people searched in Google are representing a real need of them, also can be used in SEO field. However there are a lot of website tools about keyword research, some of them are famous like Ahrefs, SEMrush… I have no intention of competing with them. Actually I don’t have any chance. While in app store, there are little apps about keyword research, each of them have terrible data and user experience, that means if my app has better data and experience that could be my chance. In fact, the App store brings me 20 organic installs a day that Google would never have been able to bring me if I had a website, at least for the first few months. Furthermore, Apple nearly did everything for developer, I don’t need to care about user login, payment and so on, Apple did everything, I just need to call their API, that save lots of time, if I build a website, I need to implement login and payment by myself, that would add some extra work. Not to mention I'd need to buy servers and domains, that would cost me a lot of money.
Although Apple will take 30% of the revenue, I can live with that in the early stages because the most important thing for me is to get the product to market as soon as possible. Actually thought Apple’s SMB program, the take rate is 15% now.
So Web or App is not important in the early stage, time is important, if people need my product, it's easy to make a website one.
More Users or More Valuable Users
In November, I notice some users would like use my app, and they were meet paywall, but they never subscribe. I provided 7 day free trail, but it seem that they don’t like it. So I decide to change subscription to pay per use. Because as a user, I don’t like subscription as well, pay per use seem like more friendly. So I change from subscription to pay per use. People can afford $9.99 to subscribe monthly for unlimited use or pay $1.99 for each data they want(First purchase is $0.99 then $1.99). I was expecting more user to pay, but it was the complete opposite! Some users who would have paid a higher subscription fee are switching to a lower priced single payment. Users are encountering paywalls more often, and each time they need to make a decision about whether or not to pay, which increases the probability that they will abandon payment. This resulted in a 75% decrease in revenue in November.
In fact, the mostly of my revenue comes from a handful of long-cycle subscribers, such as annual subscription.
Few bring in most of the revenue, that is the most important thing I learned. You don't need a lot of customers, you just need more valuable ones. That's why it's only right to design a mechanism to filter out high-value customers and focus on them, all the things you want do is just let more people into the filter, and from that point of view, subscription with free trial period is the best way, even if most people don't like it. The rule of 20/80 will always be there. The most important thing is always focus on the 20 percent things and people.
Effort does not always guarantee rewards. Unless one engages in deep thinking, or most efforts are invalid.
I have been working very hard to promote my product for a period of time. It’s about in November. I did a lot of job, such as write script to send message to my potential clients on Fiverr, post and write comments on others post on Reddit, find related questions and answer them on Quora, post and comments on Twitte, etc. During that period, I was exhausted every day, but the outcome did not meet my expectations. There is only little growth on App installation, even less revenue than before. That make me frustrated. I finally realized that If I need to put in a tremendous amount of effort just to make a little progress, there is must something wrong. So I stop 80% of promote work I have ever did, only keep app store search ad, which will bring a installation with less than $0.5 cost. Then I dive into long time and deeply thinking, I spent more time on reading books, investigate other product with great MRR, watch interviews with people who are already living the kind of life I aspire to live, for example, u/levelsio. These things have given me great inspiration, and my life has become easier. It seems that the life I anticipated when I resigned is getting closer. I also have a clearer understanding of my app. Meanwhile, MRR has been growing.
This experience let me learn that effort does not always guarantee results. Many times, our efforts are just wishful thinking, they are invalid, do the right thing after deeply thinking is more important.
What Next?
My goal is reach $3K MRR, as same as my job payment, I will never stop to building things, and I will keep my currently lifestyle.
I still don't know how to get more people to use my app, but levelsio's interviews give me some inspiration that I can verified something by manually instead of build a software. I plan to launch a trend analysis product based on the keyword data provided by my current app. I have always wanted to combine AI to build such a product, but I didn't know how to do it. Now I intend to manually complete it first and start software development once there are paying users. If you are interested to my App, you could try it. Gotrends
