Is your app ready to make money? Release Notes 2016

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Ariel Michaeli, Co-Founder and CEO of appFigures talks about strategies for monetization on the app store and the importance of identifying the best one before starting to build an app.

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Is your app ready to make money? Release Notes 2016

  1. 1. Is your app ready to make money? By Ariel Michaeli Co-Founder + CEO of appFigures Is your app ready to make money?
  2. 2. 1. Build an amazing app 2. Put it on the App Store 🎉 3. 🤔😬😶 4. $$$ Is your app ready to make money? What most people think making apps is like:
  3. 3. • Started my first company in 2002 • Studied marketing in college but programming since high school • Built several web companies (most SaaS) • Launched two iOS games early • @appFigures since 2009 Is your app ready to make money? 👋
  4. 4. • Business analytics for app makers • No SDK required • Beautiful, Powerful, Simple • Started early 2009 • Most strict privacy policy • Very affordable Is your app ready to make money?
  5. 5. Is your app ready to make money? The App Store is a busy place * Data source: Explorer, September 2016 2,249,475 iOS apps 2.3 New apps/min.
  6. 6. • There are more mobile devices than ever (thanks, China!) • And 💰💰💰billions paid out to developers Is your app ready to make money?
  7. 7. Is your app ready to make money? Is your app ready to make money?
  8. 8. A great app is a good starting point for making money Is your app ready to make money?
  9. 9. The other most important thing is… Is your app ready to make money?
  10. 10. Incorporate making money into your app’s design before starting to build it. Is your app ready to make money? IMPORTANT
  11. 11. 1. Build an amazing app 2. Put it on the App Store 🎉 3. 😀😀😀 4. $$$ Is your app ready to make money? 0. Figure out your monetization What making apps should look like:
  12. 12. 1. Identify your user - what do they need, and what will they pay for it? 2. Understand your own economics - what do you need to build and maintain this app? 3. Choose a monetization model - one that fits your user and you. 4. Experiment and iterate - Most of your users won’t mind. I promise. Is your app ready to make money? Four (easy) steps
  13. 13. Is your app ready to make money? Identify your user
  14. 14. Is your app ready to make money?
  15. 15. 1. What kind of app do they need? 2. Is there anything comparable now? 3. What do they charge? 4. What can this user pay? Is your app ready to make money? Identify your user
  16. 16. Is your app ready to make money? 5. What will this user pay? 6. How much money/time will you be saving them? 7. how much does the user want this app? 8. how much does the user need this app? Identify your user
  17. 17. Is your app ready to make money? Understand your economics
  18. 18. Is your app ready to make money?
  19. 19. 1. What will the app cost to make? 2. How much to maintain? 3. Can you produce your own content, or license it? 4. Are there ongoing fees? Is your app ready to make money? Understand your economics
  20. 20. Is your app ready to make money? Understand your economics 5. How often would you need to update? 6. Can you do it all alone or do you need to hire help? 7. What do you need to make to keep the lights on? 8. What do you need to grow?
  21. 21. Is your app ready to make money? • Legal (especially if you work with others) • Accounting • Support • Insurance (thanks, Dave) • One-off costs (Black, or Jet Black?) Gotchas
  22. 22. Is your app ready to make money? Select the most appropriate monetization strategy
  23. 23. • Consider all of your answers • Select a strategy that the user will be happy with and wouldn’t consider unrealistic • But also would allow you to keep the lights on Is your app ready to make money? Select the most appropriate monetization strategy
  24. 24. Is your app ready to make money? Monetization strategies • Free with In-app Purchases • Free with Ads • Paid • Subscriptions • Hybrid
  25. 25. Is your app ready to make money? Free with In-App Purchases The good - low perceived risk to users • Free == Easy for users to get started • Very flexible and easy to optimize • Used by 75% of Top Grossing apps • Tiered pricing improves mass appeal • Easy to experiment with
  26. 26. Is your app ready to make money? Free with In-App Purchases The bad - could get complex • Free == Higher support burden • Requires constant optimization • Need to design the app around use-cases and have enough features • Requires lots of free users in order to make money
  27. 27. Is your app ready to make money? Free with Ads The good - users never have to pay • Very easy to implement • Lots of providers who need you more than you need them • Users never have to pay for your app • Fairly predictable revenue • Easy to experiment with
  28. 28. Is your app ready to make money? Free with Ads The bad - requires a large active audience • Higher support burden • Requires lots of active users to make money • Fraction of a penny for 1,000 views (in most cases) • Changes the user experience
  29. 29. Is your app ready to make money? Paid • Simple model that’s very predictable • Less support burden - Users who pay know what they’re getting into • Doesn’t require changes to the app • Easy to experiment with The good - very simple
  30. 30. Is your app ready to make money? Paid • Only 2 paid apps in Top Grossing • Only 19% of all iOS apps are paid • 42% of paid apps cost $0.99 • Increases perceived risk for mass market customers The bad - hard to make money
  31. 31. Is your app ready to make money? Subscriptions • 23% of the Top 100 Grossing apps already use subscriptions • Predictable revenue stream • Easy to experiment with The good - sustainable
  32. 32. Is your app ready to make money? Subscriptions • Requires ongoing content additions • Requires a back-end that provides additional value (syncing, backup, sharing, etc.) • Requires users to make a commitment - Increases perceived risk. The bad - requires a service, not a product.
  33. 33. Is your app ready to make money? Subscriptions Warning
  34. 34. Is your app ready to make money?
  35. 35. Is your app ready to make money? Mixing and matching • Combining could reduce risk for users while increasing revenue • Most common is ads + IAPs • Worth considering • Harder to maintain
  36. 36. Is your app ready to make money? Let’s give this a try Say we have an app that: 1. Is used to take notes 2. Can work on a single device without a back-end 3. Can sync to multiple devices with a back-end Two questions: 1. Who’s the user 2. What are our economics
  37. 37. Is your app ready to make money? Who’s the user • Anyone that needs to take notes • Especially users with multiple devices • Possibly on multiple platforms • That want something better than the stock Notes app
  38. 38. Is your app ready to make money? What are our economics • Large upfront cost for creating apps • Ongoing cost to maintain an scale a back-end • Minimal cost to maintain apps
  39. 39. Is your app ready to make money? Subscriptions If you said You’d be right! 😀😭
  40. 40. Is your app ready to make money? Experiment and iterate
  41. 41. Is your app ready to make money? Experiment and iterate • Every strategy is easy to experiment with • One size doesn’t fit all • Once you selected a strategy - try out different prices or tiers • Set goals and measure everything • (Most) users won’t mind • I know from experience
  42. 42. Is your app ready to make money? 1. Appropriate monetization strategy is key to success on the App Store 2. It needs to fit your users 3. But also requires that you understand your own economics 4. It’s ok to experiment and iterate 5. And important that you track your success Let’s review
  43. 43. That’s it, for now. Come say 👋 and let’s 🍻 Is your app ready to make money?
  44. 44. Ariel Michaeli Co-Founder + CEO of appFigures Is your app ready to make money? Track all of your apps @ appfigures.com @arielmichaeli https://arielmichaeli.com ariel@appfigures.com

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