MONETIZING MOBILE APPS        Dave Stevenson        @dnstevenson
I SELL APPS(only iOS and Mac)
STEVENSON SOFTWARE• Selling Apps   for 2+ years• Over   40 iOS Apps• Top-Selling   Gardening App - Landscaper’s Companion ...
10 WAYS FOR YOU TO MAKE MONEY            WITH APPS1. Paid2. Advertising3. In-App Purchases4. Webapp Subscriptions5. Subscr...
#1 - PAID• Simple: You   set your price, people buy• Apple   keeps 30%• Don’t      forget about ongoing costs: support, ho...
PAID•A   0.99 cent app makes you 0.70 cents• Some    Math • Price_of_App     - Apple_Cut - Your_Costs = Your_Profit • (0.70...
#2 - ADVERTISING• Typical   with Free Apps• Is Your AppUsed One-Time or Does it Have a Long Lifespan?• Need  a lot of down...
ADVERTISING• Different Ad Types  • Traditional   Banner Ads  • Full-Page   Interstitials  • Referral/Action Ads• Earn   $ ...
Verbs & Jamie’s Recipes#3 - IN-APP PURCHASES
#3 - IN-APP PURCHASES•   Lots of Flexibility    •   Free + In-App (“freemium”)    •   Paid + In-App•   Different In-App Pu...
#4 - WEBAPPS• Users     Pay for Services through Webapp• Distribute Your   Mobile App for Free • Reach   More Customers• R...
#5 - SUBSCRIPTIONS• In  Order to Get New Content, User Must Subscribe• Typically   Magazines• Not Widely     Seen Yet• 1-5...
#6 - SPONSORSHIPS / PROMOTIONS• “Brought   to you by XXXX”• Like Advertising- Companies Pay You to Feature their Product o...
PROMOS• Do Your   Own Promotions• Make a Free app that has marketing to your paid app                                     ...
#7 - LEAD GEN• Companies     Pay You to Get them Sales Leads• High Trust   is Required• Sometimes     viewed as “slimey”• ...
Chomp & iRecommend    #8 - AFFILIATE SALESEarn a % on Purchases User Makes Through Your App
AFFILIATE SALES• Apple   Pays 5% on Purchases • http://www.apple.com/itunes/affiliates/• Amazon: Up    to 15% on Purchases ...
#9 - ANALYTICS• People will pay for anonymous analytics data from your app• Not Against Apple’s   Standard TOS to collect ...
#10 - DON’T• Not All Apps   Need to Make Money • Banks, Marketing, etc• You   Can Still Make Money • Build Them    for Peo...
GETTING PAID• iOS   Contractors are earning $75+ / hour• Little   Experience Salaries: $75+• Experienced: $100k     +
REVIEW: 10 WAYS TO MONETIZE YOUR               APPS1. Paid2. Advertising3. In-App Purchases4. Webapp Subscriptions5. Subsc...
MONETIZING CONSIDERATIONS• User   Expectations• Your   Costs• Market• Do    Some Math• Mix   & Match
USER EXPECTATIONS• There   is a race to the bottom - $1 is almost too much for some users• Monetize   and Price According ...
YOUR COSTS• One   Purchase == Customer for Life• Lifetime-Value   of Customer == 0.70 ?• Support, Infrastructure   (Hostin...
MARKET• How    Many People are in Your Target Market?• Now, How       Many of those People Have iPhones?• Next, How      M...
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 (j...
MIX & MATCH• Monetization    Methods can (and should) be Combined • Paid App    + In-App Upgrades • Free   w/ Advertising ...
PARTING THOUGHTS• Each    Monetization Strategy May Have Different Business & Marketing Strategies• Paid   and Advertising...
GOOD LUCK!
THANKS!• web: http://www.stevensonsoftware.com• email: dave@stevensonsoftware.com• twitter: @dnstevenson
Monetizing mobile apps
Monetizing mobile apps
Upcoming SlideShare
Loading in …5
×

Monetizing mobile apps

4,868 views

Published on

10 Ways to Monetize Your Mobile Apps.

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

Published in: Technology, Business
3 Comments
3 Likes
Statistics
Notes
  • NIce slides - love the cat ;-) Consider recording your comments to the presentation to elaborate on the findings - that would be great
       Reply 
    Are you sure you want to  Yes  No
    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
       Reply 
    Are you sure you want to  Yes  No
    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.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
4,868
On SlideShare
0
From Embeds
0
Number of Embeds
169
Actions
Shares
0
Downloads
159
Comments
3
Likes
3
Embeds 0
No embeds

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
  • Monetizing mobile apps

    1. 1. MONETIZING MOBILE APPS Dave Stevenson @dnstevenson
    2. 2. I SELL APPS(only iOS and Mac)
    3. 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. 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. 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. 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. 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. 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. 9. Verbs & Jamie’s Recipes#3 - IN-APP PURCHASES
    10. 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. 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. 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. 13. #6 - SPONSORSHIPS / PROMOTIONS• “Brought to you by XXXX”• Like Advertising- Companies Pay You to Feature their Product or Service Twitter
    14. 14. PROMOS• Do Your Own Promotions• Make a Free app that has marketing to your paid app Plant Pictures
    15. 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. 16. Chomp & iRecommend #8 - AFFILIATE SALESEarn a % on Purchases User Makes Through Your App
    17. 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. 18. #9 - ANALYTICS• People will pay for anonymous analytics data from your app• Not Against Apple’s Standard TOS to collect SimpleNexus
    19. 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. 20. GETTING PAID• iOS Contractors are earning $75+ / hour• Little Experience Salaries: $75+• Experienced: $100k +
    21. 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. 22. MONETIZING CONSIDERATIONS• User Expectations• Your Costs• Market• Do Some Math• Mix & Match
    23. 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. 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. 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. 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. 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. 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. 29. GOOD LUCK!
    30. 30. THANKS!• web: http://www.stevensonsoftware.com• email: dave@stevensonsoftware.com• twitter: @dnstevenson

    ×