“A big market is great only if you can take a substantial share of it” — Patrick Falzon, The App Shop

This week on the Sub Club podcast, we’re joined by Patrick Falzon, co-founder of The App Shop and former General Manager at Mosaic Group. Patrick brings a wealth of experience from his time managing and scaling subscription app businesses, offering insights into market sizing, feature strategy, and preparing for acquisitions. In this episode, Patrick shares valuable lessons he’s learned during his career in the subscription app industry and how developers can apply them for long-term success.

Market size matters

When it comes to choosing a target market for your app, size matters — and bigger isn’t always better. As Patrick explains, it’s important to strike the right balance between size and competition. The bigger the market, the more potential users may be available, but the higher the competition. “A big market is great, but only if you can take a meaningful share,” he said. According to Patrick, some categories (like VPNs) are simply too competitive to sustain long-term growth and profitability. While smaller, more niche app categories may seem less attractive, they often provide better opportunities to differentiate your app from the competition and win market share. Apps that focus on delivering specific, high-value use cases in manageable markets can build strong, enduring brands without fighting for scraps in overcrowded spaces.

The straight and narrow

One of the biggest questions app developers face when scaling an app is whether to continue adding new features or spin them off into a separate app. While adding new features can boost user retention and revenue, sometimes it can have the opposite effect: feature-heavy products may overwhelm and confuse users. In Patrick’s opinion, it’s better to keep your app narrow and focused rather than add too many features.

If you’re trying to decide between adding a new feature and building it into a separate app, Patrick has some advice: think about the core purpose of your app. As he explains it, “if a feature doesn’t fit seamlessly into your app’s core purpose, it might be better suited as a new product entirely.” Apps with a clear, simple value proposition often perform better than those that try to do too much.

Always have an exit strategy

For developers considering an eventual exit, Patrick can’t overstate the importance of strategic planning. He explains that aligning early with potential buyers, whether private equity firms or strategic partners, is essential for maximizing value. Patrick emphasizes the need for clean operations and professionalized systems, which help attract buyers and streamline the acquisition process.

As you plan for an acquisition, think about the different types of buyers in the app space: from financial players looking for consistent cash flow to strategic buyers seeking alignment with their core business. Regardless of the type of buyer you’re hoping to attract, “buyers want simplicity and clarity,” Patrick says. It’s important to think long-term about how your operations and market positioning will appeal to potential acquirers.

Conclusion

With a long career building successful app portfolios, Patrick’s advice is a great blueprint for app developers who are looking to build sustainable, scalable businesses. By making smart decisions about market selection, feature development, and exit preparation, developers can position their apps for success in an increasingly competitive landscape. Tune in to our full conversation with Patrick to get more tips on thriving in the app economy.