Is 1800 USD In Revenue Enough To Validate an MVP?
Hi,
About a year ago, after some friend told me about an issue she had, I made this app on Android that has generated since then 1500 GBP or around 1800 USD.
Some details about the app:
- Retention of the app is around 10%. From 39400 installs 3500 people still have the app on their phone
- 200 people use the app daily
- Monetisation: It's a freemium model where users can do something with a limit and have to buy 1 or 3 credits (4.99$ or 9.99$) if it crosses that limit.
I did not do any type of marketing and all the downloads are organic.
I never cared about the app and I only did a few updates. It's only available on Android.
The app has low rating, but people still use it and pay when they need it.
The low rating is mostly because it uses a 3rd party API and that I did not care to fix bugs or do more than what it is.
Do you think that this app made enough money to prove that it could be a solid business and be developed into an iOS app too?
Thanks
What’s the app
I remember back in the day even $1 in revenue is considered validation.
Now even nearly $2k in revenues isn't considered validation?
The reason why I'm asking it is because there are other factors to consider when considering a product validated. Like churn, potential market, what would be a good amount to charge that would make a good business. Right now, the app is a side project, but if it were to make it a full time project it would need to make financial sense.
For an MVP you are looking for, "I love this app but..." from paying customers. If that is the reason for the low rating then fix the issues and see if it improves. If it does then you have your answer. However, if the corrections do not help then it may not be.
There are usually comments like "great app and it helped me a lot". Most of the low ratings are related to money they have to pay or that the APIs did not work for them ( I do not control those )
well. depends. i think it's a great validation of the app's value.
next is to project how many people in the world are like the people who are using the app now, and how to reach them.
and, how much is enough? ;-D.
Yea, this is the question I'm asking myself. Can I found enough people to pay for it and convert it from a side project to a full time thing.
How would you find how many people in the world are like the people who are using the app now?