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The Single-App Vendor Survival Guide

Our analysis of 500 single-app vendors reveals who survives and who fails. The data points to 3 critical factors for long-term success.

V

Vectanex Research

Market Intelligence

December 20, 20247 min read

The Single-App Dilemma

Running a single-app business in the Jira Marketplace is precarious. Our analysis of 500 single-app vendors over 5 years reveals a stark reality: only 35% remain active and growing.

Outcomes for single-app vendors over 5 years
Only 35% remain active and growing after 5 years

What Happened to the Other 65%?

  • 30% - Abandoned (no updates in 12+ months). See our deep dive on why 40% of apps haven't updated.
  • 20% - Acquired (mostly absorbed without continuation)
  • 10% - Pivoted (moved to different platforms or products)
  • 5% - Explicit shutdown (voluntary exit)

The Survivors: What Do They Have in Common?

We analyzed the 35% that survived and identified three critical success factors:

#### 1. Revenue Threshold: $8K MRR Within 18 Months

$8,000 MRR threshold for vendor survival
Reaching this threshold within 18 months is critical

Vendors who reached $8,000 MRR within 18 months of launch had a 78% survival rate. Those who didn't? Only 12% survived.

Why this number? $8K MRR is approximately the threshold where a single developer can:

  • Sustain full-time focus on the product
  • Afford basic infrastructure and tools
  • Weather a few bad months without panic

#### 2. Category Leadership or Clear Niche

Surviving vendors either:

  • Achieved top-3 position in their category, OR
  • Owned a clearly defined niche within a larger category

"Middle of the pack" vendors almost universally failed. Saturated categories like time tracking make this especially challenging.

#### 3. Customer Relationship Investment

Surviving vendors maintained:

  • Average support response time < 24 hours
  • Regular communication (monthly at minimum)
  • Public roadmap with customer input

These factors align closely with our findings on what makes Jira apps succeed.

The Dangerous Middle Ground

Warning about dangerous middle ground revenue
Moderate success often leads to slow failure

The most dangerous position is "moderate success"—1,000-5,000 installs, $3-7K MRR, steady but slow growth.

This middle ground is dangerous because:

  • Revenue is too high to abandon without regret
  • Revenue is too low to justify full-time focus
  • Growth is too slow to reach sustainability
  • Competition is constantly improving

Strategic Recommendations

If you're pre-launch:

  • Validate demand before building
  • Set clear success criteria with a deadline
  • Plan for the pivot if criteria aren't met
  • Consider targeting blue ocean opportunities where competition is less intense

If you're in the dangerous middle:

  • Honest assessment: Is reaching $8K MRR realistic within 6 months?
  • If yes: Double down, go full-time, cut everything else
  • If no: Consider selling, partnering, or graceful shutdown

If you're a survivor:

  • Build a second app to diversify revenue—our blue ocean analysis can help identify opportunities
  • Consider building a team to reduce key-person risk
  • Document everything for eventual exit optionality

Stay updated on market dynamics with our quarterly trends reports.

#vendors#business-model#sustainability

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