August 2020 Summaries

In the early days of the App Store, developers faced challenges in sustaining revenue from paid apps due to low pricing models like 99¢, which necessitated high sales volumes to be profitable. As a solution, the transition to subscription-based models became popular, offering continuous revenue and financial stability for app developers. Subscriptions allow developers to receive ongoing support from users who value their products, akin to recurring bills like rent or gym memberships. RevenueCat is highlighted as a tool that simplifies this transition by handling subscription logic, receipt validation, and entitlements management, without the need for developers to manage complex backend processes. The article also discusses the importance of maintaining access for existing users who paid for the app prior to the subscription switch, using entitlements to manage feature access based on purchase history. The implementation of the Purchases SDK and the creation of a CompatibilityAccessManager class are explained as methods to ensure users have appropriate access to premium features, with RevenueCat automating much of the process. The guide concludes by encouraging developers to use the open-source PurchasesHelper library to streamline the integration of subscription models in iOS apps.

In their journey to create RevenueCat, Jacob and Miguel aimed to simplify the management of mobile subscriptions and in-app purchases, drawing from their own challenges scaling Elevate. They launched the tool in 2017 and gradually expanded their customer base, culminating in participation in Y Combinator and a $1.5M seed round. Despite early struggles to meet demand, the COVID-19 pandemic unexpectedly accelerated RevenueCat's growth, tripling sign-ups and straining their resources. This growth led to a successful $15M Series A funding round, driven by a vision to enhance tools for developers and maintain a commitment to prioritize customers over investors. The founders express gratitude to the supportive community that helped RevenueCat thrive, vowing continued dedication to building valuable features and fostering genuine relationships with users.

Apple's introduction of iOS 14 has substantially altered the mobile advertising landscape by requiring developers to obtain user permission before accessing the Identifier for Advertisers (IDFA), a move that significantly impacts companies reliant on targeted advertising, such as Facebook and Google. This change is anticipated to disrupt the economic engine of the App Store, which heavily depends on paid user acquisition, a strategy historically facilitated by the IDFA for tracking and optimizing ad spend. To mitigate the impact, Apple has introduced SKAdNetwork, a system designed to offer some level of campaign attribution without user-level tracking, although its current limitations pose challenges in measurement and optimization. SKAdNetwork restricts campaign numbers, offers minimal developer control, and prohibits retargeting and view-through attribution, compelling the industry to adapt to probabilistic measurement rather than deterministic. Despite these upheavals, apps delivering genuine value are expected to continue thriving, while developers may be incentivized to explore alternative tracking methods. As the dust settles, new tools and strategies are likely to emerge to help developers navigate this transition, with companies like RevenueCat closely monitoring developments and providing guidance.