A ‘Cash Cow’ is on the Agenda

The Great Mac App Sales Crisis of 2017

The ‘Cash Cow’ Model

Inspiration Courtesy of Sketch

Aren’t Subscriptions the Way Forward?

How Is Agenda’s Model Better?

  • Not only can customers trial the app for free, they can keep using the base features as long as they like (à la freemium).
  • The latest version of the app is available to everyone, including all bug fixes. Nobody need be ‘stuck’ on an older version.
  • The customer is not locked into a subscription to keep using the app. The features they have already purchased are unlocked forever.
  • There are no major upgrades, forcing customers to pay to keep using the app. Customers can decide whether new features warrant a new purchase, and keep using the latest version even if they decide not to upgrade.
  • When a customer makes a purchase, it is clear what they are purchasing: access to a concrete set of premium features.
  • Agenda can be downloaded from either the Mac App Store, or the Agenda website, and the customer can switch between the two variants while maintaining their existing license. For example, you can purchase via a download from the Agenda web site, and later install via the Mac App Store.
  • As with subscriptions and paid upgrades, a single customer can generate recurring income for the developer.
  • The development team is not forced to disappear for 6 months to develop a major new release. The app is continually evolving, with new features and bug fixes.
  • With no major updates, there are no opportunities for large scale customer disappointment being reflected in a wave of poor reviews and negative feedback. Updates are spread out, as are customer purchases.
  • Customers who do not immediately purchase are not necessarily a lost opportunity. They can continue to use the app for free, and may be tempted to purchase in future by newly introduced features.
  • It is quite easy to incentivize customers to help spread the word. For example, we could introduce bonus time for referrals. If a customer referred someone to the app, resulting in a new purchase, the referrer could receive an extra 3 months of premium features. You can conceive of many variations on this theme.

The Nitty Gritties

Concluding

Agenda Links

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store