“let’s talk about Bending Spoons’ business model. The basic concept is very simple:
- Find a solid app that someone else built and buy it from them (see Splice (acquired from GoPro) and 30 Day Fitness)
- Optimize the monetization of said app (by implementing from scratch or fine-tuning existing subscriptions), thereby driving higher lifetime value (LTV)
- Take that higher LTV and use it to bid on expensive ad inventory (on Google, Facebook, Apple Search) where you can acquire more users (aka drive more downloads) - i.e. leverage performance marketing for growth
- Convert those new downloads to paying users
- Massively ramp revenues and cash flow by combining the new users + the better monetization
- Use the new cash flow - plus the debt from those lovely Italian banks - to fund the next acquisition
- Lather, rinse, repeat
There is absolutely nothing wrong with this business model. What differentiates Bending Spoons, though, is how they do it.
Remini - Bending Spoons’ new app that the press is gushing over - is $10 a WEEK. And Splice, the app that started it all? That’ll set you back a cool $5/week.
Does anyone really think it’s appropriate to pay $10 a week for a photo editing app?”
https://open.substack.com/pub/impassionedmoderate/p/ryan-rey...