BlueThrone · B2C · app acquirer
Before buying an app, compare its return per dollar with more ad spend
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What they did
Use the 'ROI of a dollar' framework: know what $1 of marketing returns on your current app (e.g. $50 by month 3, $200 by month 12). For a candidate acquisition, estimate the return on its price from its revenue, resubscriber rate, retention, churn and LTV, and compare like-for-like with spending the same amount on marketing your current app. Especially useful for apps in your own niche.
In their words
Sub Club by RevenueCat · Buying vs. Building: Scaling Beyond a Single App — Josh Peleg, BlueThrone“And one of the frameworks we use at Blue Throne is really the ROI of a dollar.”
“You're then in a position to directly compare the ROI of that dollar to whether you spent a million more dollars on marketing your current app, because you should know that data.”
Related topics
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More from BlueThrone
All 8 BlueThrone tacticsMore from this episode
- BlueThrone: Buy about 100 small utility apps valued mostly on profitMany had been pumped before sale and died; shallow products didn't last
- BlueThrone: Buy only a few apps with strong organic traffic and invest in their teamsPortfolio cut to 5 apps, each a category leader or on its way; guest says it works
- BlueThrone: After buying a music app, hire a GM from Spotify and triple the teamMAU grew from 200K to almost 6M; still near the top of its category
- BlueThrone: Build an in-house team making cheap UGC TikTok videos for the appsFirst viral video took 6 months and several people; gets faster with practice
- Plarium: Sell mugs, t-shirts and hoodies to a game's biggest spenders
- Soundmap: Sell power-ups on top of the subscription, like 2x more songs nearbyGuest says it captures what each user is willing to spend; no numbers
- Build solo without VC money, then sell the app within 18 monthsSold for over $4M; deal closed in 3 months with no investors involved
- Opal: Charge $120 a year and pitch it as paying for itself in work timeGuest says it unlocked very high LTV; no figures beyond price
- Cal AI: Launch a rough app, prove people pay, then build the real techHost says it's now a genuinely great app; no numbers
- Push the lifetime plan on the paywall right before selling the appKnocks down negotiations; the buyer can't monetize those users again
- Cut ad spend from $50K to $10K a month to look profitable before sellingDownloads eventually follow the drop; guest calls it riskier than pushing revenue
- Add in-app coins that people earn from ads or buy in packsApps that crack consumables reach deeper LTVs, per talks with hundreds of founders
- BlueThrone: Stack category downloads over time to see if new apps grow the marketScreen time market grew with each new entrant; buying a non-leader looked OK
- Strava: Keep a bought app separate and sell one subscription for both apps