Shopify Appstore Earnings Model

Shopify Appstore pricing comes with its own challenges but also opportunities. A major difference of having an Appstore as a traffic source is that every install has an influence on an apps rating and therefore changes the barrier for subsequent installs. To show this, we built a simple model that sets out to capture this aspect. Also you can play with different scenarios like making the app free at some point, to pick up users more quickly.

The model tries to show the interaction between App pricing, Appstore ranking and Total Revenue. It works under the assumption that a more installs lead to a higher Shopify Appstore ranking (disregarding e.g. reviews and conversion rate) which in turn gives more visibility for an App which increases install rate. Higher App price in turn decreases the install likelyhood.

Want to learn where your App is really heading? Check out – Analytics for Shopify Partners