# Business model, growth engine, and archetype benchmarks Source: Lazyweb Research 22 data-backed questions on Business model, growth engine, and archetype benchmarks. HTML: https://www.lazyweb.com/research/category/business-model-growth-engine-and-archetype-benchmarks Markdown: https://www.lazyweb.com/research/category/business-model-growth-engine-and-archetype-benchmarks.md ## Questions - [How do tracked apps actually make money — subscription, ads, or transactions?](https://www.lazyweb.com/research/how-do-tracked-apps-make-money-subscription-ads-transactions) Subscription is the default: 418 of 686 attribute-tagged apps (61%) carry a subscription model, more than double advertising at 176/686 (26%) [1]. Cross-subsidized funnel/companion apps (124), market… - [What percentage of tracked apps run on advertising?](https://www.lazyweb.com/research/what-percent-of-tracked-apps-run-on-advertising) 26% — 176 of 686 attribute-tagged apps carry an advertising model, the second-most-common revenue stream after subscription (418) [1]. Advertising is rarely the whole story: it clusters in News, Soci… - [Is one revenue stream the norm, or do apps stack multiple business models?](https://www.lazyweb.com/research/is-one-revenue-stream-the-norm-mono-vs-multi-model) One stream is the plurality but not the majority: 394 of 686 tagged apps (57%) are mono-model, while 292 (43%) carry two or more revenue models [1]. The mean is 1.64 models per app, driven by 239 two… - [Which product archetypes correlate with subscription-first vs freemium/ads?](https://www.lazyweb.com/research/which-archetypes-lean-subscription-vs-ads) Prosumer is the most subscription-first archetype at 72% (85 of 118 apps), followed by Collaborative (60%), Social (58%), Enterprise (53%), and Consumer (51%) [1]. The outlier is the 2-sided Marketpl… - [How do Health & Fitness apps make money?](https://www.lazyweb.com/research/how-do-health-and-fitness-apps-make-money) Almost entirely subscription: 53 of 54 Health & Fitness apps (98%) carry a subscription model — the most subscription-dominated category in the corpus [1]. The only meaningful secondary is cross-subs… - [How do News apps make money — ads or subscriptions?](https://www.lazyweb.com/research/how-do-news-apps-make-money) Both, layered: 39 of 45 News apps (87%) carry advertising and 36 of 45 (80%) carry subscription, so the category is a mostly ad-first hybrid rather than a choice between the two [1]. Growth is unusua… - [How do Shopping apps make money?](https://www.lazyweb.com/research/how-do-shopping-apps-make-money) On commerce margin and marketplace fees, not subscriptions: 25 of 43 Shopping apps carry commerce margin and 17 of 43 carry marketplace/transaction fees, while only 2 of 43 carry subscription [1]. Sp… - [How do Finance apps make money?](https://www.lazyweb.com/research/how-do-finance-apps-make-money) On financial rails, not subscriptions: 29 of 38 Finance apps (76%) carry a financial-rails-revenue model (interchange, spreads, float), with subscription a distant second at 8 of 38 [1]. Growth is pa… - [How do Productivity apps make money and grow?](https://www.lazyweb.com/research/how-do-productivity-apps-make-money-and-grow) Subscription-led with a B2B licensing layer: 42 of 54 Productivity apps carry subscription and 11 of 54 carry B2B licensing [1]. Growth is the most diverse of any category — 8 distinct engines each c… - [How do Games apps make money?](https://www.lazyweb.com/research/how-do-games-apps-make-money) On in-app purchases and ads, essentially never subscription: 7 of 8 tracked Games apps carry IAP consumables/usage and 6 of 8 carry advertising, while only 1 of 8 carries subscription [1]. This is th… - [How do Travel apps make money?](https://www.lazyweb.com/research/how-do-travel-apps-make-money) On marketplace/transaction fees and cross-subsidized funnels: 18 of 41 Travel apps carry marketplace/transaction fees and 15 of 41 carry a cross-subsidized funnel/companion model, with subscription a… - [What growth engines do tracked apps rely on most?](https://www.lazyweb.com/research/what-growth-engines-do-tracked-apps-rely-on) PR leads at 330 of 599 growth-tagged apps (55%), followed by paid performance marketing (298 = 50%) and word of mouth (296 = 49%) [1]. Network effects (217) and product-led self-serve/PLG (179) round… - [Which app categories grow on paid performance marketing?](https://www.lazyweb.com/research/which-categories-grow-on-paid-performance-marketing) Finance, Shopping, and Travel are the paid-marketing categories: every growth-tagged app in each uses paid performance marketing (31/31, 33/33, and 33/33 respectively) [1]. Across all 599 growth-tagg… - [Which app categories grow on content-led SEO?](https://www.lazyweb.com/research/which-categories-grow-on-seo-and-content) News and Magazines are the content/SEO categories: 100% of growth-tagged apps in each use content-led/SEO (45/45 News, 25/25 Magazines) [1]. Content/SEO is far less universal elsewhere — it is only t… - [Which product archetypes use PLG vs sales-led growth?](https://www.lazyweb.com/research/which-archetypes-use-plg-vs-sales-led-growth) Sales-led and cold-outreach growth are concentrated in Enterprise and Collaborative archetypes — Enterprise runs sales-led at 29 of 70 apps (41%) and land-and-expand at 23 of 70 (33%) [1]. Consumer,… - [How do 2-sided marketplaces monetize and grow?](https://www.lazyweb.com/research/how-do-2-sided-marketplaces-monetize) On transaction fees, not subscriptions: 69 of 158 marketplace apps (44%) charge marketplace/transaction fees, while only 35 of 158 (22%) run subscription — the lowest subscription share of any archet… - [How do Enterprise apps monetize and grow?](https://www.lazyweb.com/research/how-do-enterprise-apps-monetize-and-grow) On subscription plus B2B licensing, sold through a sales motion: 37 of 70 Enterprise apps (53%) carry subscription and 27 of 70 (39%) carry B2B licensing [1]. Growth is uniquely top-down — sales-led… - [Do market leaders monetize differently than challengers?](https://www.lazyweb.com/research/do-market-leaders-monetize-differently-than-challengers) Barely — and counterintuitively, challengers are the more subscription-first group: 63% of challengers (105 of 166) carry subscription vs 51% of leaders (145 of 284) [1]. Leaders are marginally more… - [Which product archetype is most common among tracked apps?](https://www.lazyweb.com/research/which-product-archetype-is-most-common-in-tracked-apps) Consumer dominates: 546 of 757 archetype-tagged apps (72%) are Consumer, more than double the next archetype, Social (260 = 34%) [1]. 2-sided Marketplace (158), Prosumer (118), Enterprise (70), and C… - [How do Social Networking apps make money and grow?](https://www.lazyweb.com/research/how-do-social-networking-apps-make-money-and-grow) On a subscription-plus-ads-plus-creator stack, grown by network effects: 22 of 29 Social Networking apps carry subscription, 17 carry advertising, and 10 carry a creator-monetization take rate [1]. G… - [How do Education apps make money?](https://www.lazyweb.com/research/how-do-education-apps-make-money) Subscription-first with a B2B licensing tail: 23 of 29 Education apps carry subscription, with B2B licensing and advertising tied for second at 5 each [1]. Growth is word-of-mouth and PLG-led — 28 of… - [What is a cross-subsidized funnel (companion app) model, and how common is it?](https://www.lazyweb.com/research/how-do-cross-subsidized-funnel-companion-apps-monetize) A cross-subsidized funnel is an app that exists to feed a larger business rather than to monetize directly (bank companion apps, retailer apps, hardware companions). It is the third-most-common model…