In August 2018, Studio Wombat turned 1 year old! Aside from celebrating with coupon codes, we’re also reflecting on our first year as a WordPress business. If you’re curious to find out how we’ve been doing this past year, read on!
Our year in numbers
- We have 7 plugins, both small and large.
- 5 Plugins have a premium version.
- We created 3 plugins during the course of the year.
- We sold 670 licenses.
- We retracted 15 licenses due to refunds.
- We had 1 dispute. It’s still under investigation but I’m sure we’ll lose it.
- We made $348 in our first month.
- We made $3,836 in our best month.
- We had 263 days where we sold at least 1 product. We had 103 days without sales.
- We offer both Stripe & PayPal as payment methods. Paypal is the most popular method, with $4,200 more in transactions.
- The largest amount of profit in a day was $399.19.
- Our top three of countries: United States, UK, Australia.
- Our top selling plugin, WP Optin Wheel, raked in $19,000.
Our gross profit for the year was $27,500, including refunds. Payment processors take about 5% and our we paid $350 for hosting. We have no other costs as we created our own software to handle licensing. This leaves us with a net profit of $25,775 or a little over $2,000 per month.
These results are not too bad for the first year! Many plugin businesses struggle so we’re happy to prove it’s still possible to run a profitable plugin business in 2018.
What makes us successful in our first year?
Our success is largely due to 2 of our plugins: WP Optin Wheel and Business Hours Indicator. Here’s why we think they are a success:
Business Hours Indicator
When looking at the WordPress plugin directory, it became clear there weren’t many feature-rich opening hour plugins on the market. So we saw an opportunity and created an easy-to-use plugin with all the bells & whistles. It goes so much further than just displaying dynamic opening times. Our customers appreciate the beautiful settings screen which makes it more fun to use and implement on their website.
WP Optin Wheel
We had seen this type of software on Shopify stores but nothing like this existed for WordPress. Again, we saw an opportunity and built it specifically for WordPress. Being the first plugin of its kind, it received a head start and some good momentum. By now, many others have followed and competition is tough.
The plugin also integrates with WooCommerce, which is a popular e-commerce plugin and the market is willing to pay for good WooCommerce-based software.
How do we go from here?
More (WooCommerce) plugins
The most straightforward way to grow our business is by creating more premium plugins. We found that focusing on WooCommerce products increases our chances of sales because WooCommerce users are used to paying a decent price for plugins that extend its core functionality. According to BuiltWith Trends, WooCommerce is still the leading e-commerce platform, so there’s a huge market to sell to.
We’ll be running A/B experiments with price increases and decreases, as well as some changes to our website. We’ll also think of new ways to up our marketing game. Studio Wombat is a classic tale of run-by-a-developer so marketing will definitely need some more work.
We’ll finish our integration with Paddle, which handles payments, multiple currencies, and VAT for us (and it’s awesome!). We’ll also build some more reporting tools so we can closely monitor our earnings.
We’re pretty happy with the way our website looks at the moment but we’d like to change a few things:
- Plugin icons should be more modern.
- The plugin page should better reflect what we’re selling. Right now, it’s a basic page with some text, icons and a pricing box. We’d like to redesign each of these pages to sell the plugin better. That means better copy, more icons/images, and talk about all features in a more salesy way.
But for now, we’re just enjoying the success of our first year and keep improving existing products.
On to year two!