Or how you can estimate subscription revenue with a leaky bucket

Given Apple’s push behind App Store subscriptions and the number of apps that have made the switch like DayOne, Ulysses, 1Password, and our very own Astropad Studio, if you’re an app developer you should take a serious look at subscriptions.

Now switching to subscriptions isn’t a panacea, it’s a much more complex business model that pays off over the long haul. To get a grasp subscriptions and make reasonable revenue estimates you’ll need to get a handle on things like LTV (Life Time Value), Churn, MRR (Monthly Recurring Revenue), and Trial-To-Paid conversion. For this post, I want to focus on churn, which is the percentage of users that cancel their subscription in a given time frame, typically a month. In fact, churn has a direct effect on the total number of possible subscribers you can have. Let me explain…

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