Use revenue estimation tools to validate market size before entering
Before building, use tools like Sensor Tower to estimate competitor revenue and confirm the market supports viable businesses. Look for niches with multiple apps doing $50K+/month to derisk market size concerns.
When to use
When choosing which market or app category to enter, especially for mobile apps where revenue data is available through estimation tools
Don't do this
Building in unproven markets without checking if similar apps generate meaningful revenue, leading to viable products in non-viable markets
3 Founders Who Did This
Used Sensor Tower to validate the Christian app niche had apps doing over $50K/month before building PrayScreen competitor
Used SensorTower to confirm the original Quitter app was making $200K/month after 3 months, proving the app category had monetization potential before building Stoppr
Used Sensor Tower to confirm quit-smoking apps were generating strong revenue, identified gap for vaping-specific solution