Monetizing mobile apps

  • 4,273 views
Uploaded on

10 Ways to Monetize Your Mobile Apps. …

10 Ways to Monetize Your Mobile Apps.

My presentation from the MobileSlopes conference in Ogden, Utah on March 16.

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • NIce slides - love the cat ;-) Consider recording your comments to the presentation to elaborate on the findings - that would be great
    Are you sure you want to
    Your message goes here
  • Great presentation, however i think you might have to remind also the social advertising via innovative SDK offered on the market today permitting to monetize but also promote and socialize the app.....

    Michael
    www.appoptim.com
    Are you sure you want to
    Your message goes here
  • Great...loved it...I also have written some post on Android Marketing @ http://creatiosoft.com/forum/forumdisplay.php?fid=11 ,which includes Pre Launch strategy and Post Launch strategy... I would love to have your comments and feedback to make my posts more interesting and useful.
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
4,273
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
150
Comments
3
Likes
3

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n

Transcript

  • 1. MONETIZING MOBILE APPS Dave Stevenson @dnstevenson
  • 2. I SELL APPS(only iOS and Mac)
  • 3. STEVENSON SOFTWARE• Selling Apps for 2+ years• Over 40 iOS Apps• Top-Selling Gardening App - Landscaper’s Companion • Top 100 iPhone, Top 10 iPad• Featured by Apple a Few Times
  • 4. 10 WAYS FOR YOU TO MAKE MONEY WITH APPS1. Paid2. Advertising3. In-App Purchases4. Webapp Subscriptions5. Subscriptions6. Sponsorships/Promotions7. Lead Gen8. Affiliate Sales9. Analytics10. Super-Secret Way
  • 5. #1 - PAID• Simple: You set your price, people buy• Apple keeps 30%• Don’t forget about ongoing costs: support, hosting, etc• Customer for Life - People Expect Free Upgrades• Higher Price != More Money Day One
  • 6. PAID•A 0.99 cent app makes you 0.70 cents• Some Math • Price_of_App - Apple_Cut - Your_Costs = Your_Profit • (0.70 - costs) * app_sales = your_target_number• Considerations: • Is your target audience big enough • What is your competition priced at?
  • 7. #2 - ADVERTISING• Typical with Free Apps• Is Your AppUsed One-Time or Does it Have a Long Lifespan?• Need a lot of downloads to make any sizable money• Expect pennies per day for each 100 downloads per day Airplane Quiz
  • 8. ADVERTISING• Different Ad Types • Traditional Banner Ads • Full-Page Interstitials • Referral/Action Ads• Earn $ per display and/or per click/action• Easy to Implement SDKs • iAds is built-into iOS SDK • Google Adsense, Tapjoy, Millenium Media, Lift Media - there’s hundreds! • Aggregators: Mobclix, Adwhirl
  • 9. Verbs & Jamie’s Recipes#3 - IN-APP PURCHASES
  • 10. #3 - IN-APP PURCHASES• Lots of Flexibility • Free + In-App (“freemium”) • Paid + In-App• Different In-App Purchase Types: • Tokens (consumable) - think Games • Upgrades (non-consumable) - Free-to-Pro Upgrades, Additional Levels/Content• Expect 1-5% conversion rate • If 100 people download app, 1-5 people will make in- app purchase Tattoo You
  • 11. #4 - WEBAPPS• Users Pay for Services through Webapp• Distribute Your Mobile App for Free • Reach More Customers• Requires Double Work: Mobile App + Webapp Evernote
  • 12. #5 - SUBSCRIPTIONS• In Order to Get New Content, User Must Subscribe• Typically Magazines• Not Widely Seen Yet• 1-5% conversion Kids-In-Mind
  • 13. #6 - SPONSORSHIPS / PROMOTIONS• “Brought to you by XXXX”• Like Advertising- Companies Pay You to Feature their Product or Service Twitter
  • 14. PROMOS• Do Your Own Promotions• Make a Free app that has marketing to your paid app Plant Pictures
  • 15. #7 - LEAD GEN• Companies Pay You to Get them Sales Leads• High Trust is Required• Sometimes viewed as “slimey”• Super Low Conversions • Volume, Volume, Volume Zillow
  • 16. Chomp & iRecommend #8 - AFFILIATE SALESEarn a % on Purchases User Makes Through Your App
  • 17. AFFILIATE SALES• Apple Pays 5% on Purchases • http://www.apple.com/itunes/affiliates/• Amazon: Up to 15% on Purchases • https://affiliate-program.amazon.com/• Lots of Others: Clickbank, Commission Junction, ShareASale• Usually Low Margins - 5% on 0.99 = 4 cents
  • 18. #9 - ANALYTICS• People will pay for anonymous analytics data from your app• Not Against Apple’s Standard TOS to collect SimpleNexus
  • 19. #10 - DON’T• Not All Apps Need to Make Money • Banks, Marketing, etc• You Can Still Make Money • Build Them for People • Invest in Them • Work for Them Chase
  • 20. GETTING PAID• iOS Contractors are earning $75+ / hour• Little Experience Salaries: $75+• Experienced: $100k +
  • 21. REVIEW: 10 WAYS TO MONETIZE YOUR APPS1. Paid2. Advertising3. In-App Purchases4. Webapp Subscriptions5. Subscriptions6. Sponsorships/Promotions7. Lead Gen8. Affiliate Sales9. Analytics10. Don’t
  • 22. MONETIZING CONSIDERATIONS• User Expectations• Your Costs• Market• Do Some Math• Mix & Match
  • 23. USER EXPECTATIONS• There is a race to the bottom - $1 is almost too much for some users• Monetize and Price According to Category Expectations • Simple Games = Free + In-App Purchases or Paid • Niche Apps = Paid w/ Higher Price? • News App = Advertising
  • 24. YOUR COSTS• One Purchase == Customer for Life• Lifetime-Value of Customer == 0.70 ?• Support, Infrastructure (Hosting, Bandwidth), APIs, Partners • Instagram’s Monthly Hosting Bill: 2 nice cars each month!
  • 25. MARKET• How Many People are in Your Target Market?• Now, How Many of those People Have iPhones?• Next, How Many of those People with iPhones will Purchase Your App?• Rule of 1% • 1.5m gardeners, 15k w/ iPhones, 150 will buy my app
  • 26. DO SOME MATH• 100 apps downloaded each day at $0.99 = $70 or $2,100 per month• $2,100 per month is $25,200 per year (just above poverty)• Thinking of Doing Adwords? $0.25 per click + 25% conversion rate = cost $1.00 to make $0.70 • Even worse with realistic 1-3% conversion rate• Typical Apps will Cost > $10k for v1.0
  • 27. MIX & MATCH• Monetization Methods can (and should) be Combined • Paid App + In-App Upgrades • Free w/ Advertising + In-App Purchases/Upgrades • Free w/ Lead Gen + Advertising• Affiliate Sales - Anytime You Have Links to Outside Content
  • 28. PARTING THOUGHTS• Each Monetization Strategy May Have Different Business & Marketing Strategies• Paid and Advertising are Easy to Dip Into • Just remember to watch your costs• Freemium will be the most interesting space to watch
  • 29. GOOD LUCK!
  • 30. THANKS!• web: http://www.stevensonsoftware.com• email: dave@stevensonsoftware.com• twitter: @dnstevenson