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Ask HN: What are app developers buisness models?

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Re: Ask HN: What are app developers buisness models?

#12
I'm still learning mobile (iOS) development having got back to software development last year although I've been doing Rails contract work for much of the time. I released my first real experiment http://itunes.com/apps/fastlists (yes it's another lists app but it is currently free, with no ads and has a couple of useful features making it especially useful for reusable lists for shopping, packing etc. The design is functional rather than beautiful).

I'm currently adding some in-app purchase options to test the reactions of the users.

My current idea is to offer the following options: (price tiers equate to $1 or local equivalents I think)

1) No-ads (tier 1 price)

2) Privacy - No anonymous usage collection.(tier 1 price)

3) Raise item limit (by 100 to 200 items) (tier 1 price)

4) Unlimited items (tier 3 price)

5) Everything including future in-app features (tier 5)

For me option 5 is important because I hate feeling I will need to keep paying bit by bit for something. It will include everything that doesn't need server side support and expense. I actually hope most customers choose this, the other items are there largely to justify the pricing of this item.

Ads and anonymous usage monitoring will come in releases after the purchases have become available and for ads I will probably make the first month of use add free to try and get the user stuck in. I may also add some alternate skins as in-app purchases too later although that is lower priority than using the iOS 6 social framework as a way to try to get users promoting the app for me by sharing lists.

There is currently no item limit so I will allow users with more than 50 current items to have their initial limit be 50 higher than the current level.

At the moment this is just a small scale test because I haven't done any promotion for the app yet so the current numbers of users is small although the reviews are currently very good (4.5* average in US and UK) (despite a usability issue leading someone not to work out how to reorder items and give it only 3*- but I'll add some help in the release after next).

To become self sustaining as an independent developer I'm expecting to need to keep a small suite of apps ticking over. Some will be more ambitious than this although others may be even simpler with different unique features or niche target markets.

My wife is in employed work so the time flexibility of being independent is important to cover childcare around school hours than making massive money in the short term so I can take some time to build (knowledge and users)

Any thoughts on the pricing model? Or the app?

Re: Ask HN: What are app developers buisness models?

#13
post #8

Wow, this is a great question. I run newgenapps.com We have been developing apps since July 2008, since the iPhone SDK went public. We have seen the whole app economy grow from zero to what it is today, and we have seen some really interesting business models emerge. 1. The iPhone and iPad have opened numerous possibilities to develop some really amazing apps. Angry Birds was a game waiting for iPhone to happen. So i…

> 5. Localization is an under appreciated feature. Many apps can double or triple revenue after being localized.

Which languages do you prioritise? How many do you need to cover to get the double/triple benefit?

Re: Ask HN: What are app developers buisness models?

#14
Good question.

I run Monologix, which creates driving test prep apps for Canada, US, UK and Australia, for each state/province and vehicle type (eg - "US DMV Driving Tests" app), as well as a free webiste at DrivingTests101.com for 11 countries.

The business model is free lite version (with ads) and in-app purchase on Apple and free apps monetized by ads on Android. Business model on Apple is changing more to free and monetized by ads. O

We have the #2 education app in Canada with very high clickthrough rates and it makes peanuts, but I enjoy the passive income.

When it is a free app, you need a large market, good volume and a high clickthrough rate for ads to make any money. All in all, it is a very competitive and tough spot to make money, but there are one-off successes and the app market and global reach is incredible.

It is fun getting emails from 16 year olds saying they were able to get their driver's license by using our material.

Here's a great email from the parent who made their teenager use our website:

"I can confirm its usefullness. I required my youngest son to use this and pass 10 tests in a row with a 90 or better before we would take him to the DMV for his learner's permit. He aced his test, and has much better road knowledge than my older two sons who I only quizzed directly out of the DMV manual."

Re: Ask HN: What are app developers buisness models?

#16
post #8

Wow, this is a great question. I run newgenapps.com We have been developing apps since July 2008, since the iPhone SDK went public. We have seen the whole app economy grow from zero to what it is today, and we have seen some really interesting business models emerge. 1. The iPhone and iPad have opened numerous possibilities to develop some really amazing apps. Angry Birds was a game waiting for iPhone to happen. So i…

> 5. Localization is an under appreciated feature. Many apps can double or triple revenue after being localized. Which languages do you prioritise? How many do you need to cover to get the double/triple benefit?

Depends on the kind of apps. Japan and China are huge markets, but a western oriented app may not work there. While that same app can work when localized for France, Germany etc

These are the major languages I would look at 1. Spanish 2. Portugese 3. German 4. French 5. Chinese 6. Japanese

Re: Ask HN: What are app developers buisness models?

#17
post #8

Wow, this is a great question. I run newgenapps.com We have been developing apps since July 2008, since the iPhone SDK went public. We have seen the whole app economy grow from zero to what it is today, and we have seen some really interesting business models emerge. 1. The iPhone and iPad have opened numerous possibilities to develop some really amazing apps. Angry Birds was a game waiting for iPhone to happen. So i…

Agree with all points except for #2.

Me too apps are the least-risky way to make money. You are going into a known market with little technical risk. All that remains is to beat the other guy, and the smaller the market, the bigger the chump the other guy is likely to be.

Want to make a billion dollars? Don't make the 100th bible app.

Trying to pay rent? Don't make your new creative photo-sharing app.

Re: Ask HN: What are app developers buisness models?

#18
post #8

Wow, this is a great question. I run newgenapps.com We have been developing apps since July 2008, since the iPhone SDK went public. We have seen the whole app economy grow from zero to what it is today, and we have seen some really interesting business models emerge. 1. The iPhone and iPad have opened numerous possibilities to develop some really amazing apps. Angry Birds was a game waiting for iPhone to happen. So i…

> 5. Localization is an under appreciated feature. Many apps can double or triple revenue after being localized. Which languages do you prioritise? How many do you need to cover to get the double/triple benefit?

Sort by economic wealth, but really, why prioritize? It's only .07 per word to translate an app, less if you are creative.

Re: Ask HN: What are app developers buisness models?

#19
Get Set Games here. I'm not one of the founders, but I'm the first non-founder engineer.

We released Mega Jump for iOS just over two years ago. This was after a couple of paid games that didn't really get traction. The first version was developed in about 5 weeks by one engineer and one designer.

Initially, it was priced at $0.99, but then the price was dropped to free for a weekend, to do OpenFeint's free game of the day. That weekend, the game got about one million downloads, but there was no in-game store nor ads to monetize that at the time. However, that experience caused the founders to change to a freemium model.

We currently make money with in-app purchases and voluntary ads-for-ingame-currency. We've done 17 updates to the game, and it's currently approaching 30 million downloads, split about 25 on iOS and 5 on Android. After two years, we still get about 400 thousand daily active users.

We released Mega Run for iOS on May 30, and it was designed to be freemium from the start. It's possible to play the entire game without paying anything, and we shipped with 4 themed worlds (we seem to have erred on the side of giving away too much). In any case, the game blew through 5 million downloads in a couple of weeks, and currently has over 500 thousand daily active users. We were #1 on the iTunes free charts for about a week.

Mega Run was a long dev cycle -- about 18 months total. Initially, it was just one engineer and 1.5 artists. I joined on contract for the second half of development, and by the end the whole company (3 engineers, 3 designers, 1 producer) were working on it.

In terms of conversion rate ( people who spend $ > 0 / all downloads ), we're at the high end of average. An often quoted average is 1% conversion. We find that historically Android has converted at about 1/10 of iOS, but that's changing, and we're seeing strong Android growth after just being featured in Google's staff picks. Historically, we've outsourced all Android development.

The company started with 4 active founders. About a year and a half ago they hired an intern for community support who's now gone on to do level design and artwork, as well as a producer. I came on board on contract about a year ago, and started full-time in Jan. We've just hired engineer #4.

All of the engineers we've hired so far (as well as the founders) are lead-programmer quality. The expectation is that any one of us can do any engineering job within the company. The two founding designers are brothers and did some work on Counterstrike back in the day. Several of us have taught game design and/or programming at local community colleges.

This is the best environment I've worked in. Dual 30" monitors and beastly machines all around. All expense paid GDC and WWDC conferences. Beer. No dress code (wearing flip-flops right now). Very low-ego co-workers and founders who are actively involved in production. No comment if I come in at 10:30 (but maybe if I come in at noon :). The occasional crunches are not nearly as bad as the rest of the game industry, and it's not expected. I've worked on a weekend once, the week before release.

We're completely self-funded, and growing organically as we find great people. We're in Toronto, Canada, easily accessible on foot or by public transit. We're always on the lookout for great people that we can work with, although we're not hiring for any specific roles right now.

Also, we do a lot of cross-promotion with other indie devs with high-rated games that we like.

Re: Ask HN: What are app developers buisness models?

#20

Earlier quoted context omitted.

> 5. Localization is an under appreciated feature. Many apps can double or triple revenue after being localized. Which languages do you prioritise? How many do you need to cover to get the double/triple benefit?

Sort by economic wealth, but really, why prioritize? It's only .07 per word to translate an app, less if you are creative.

Where do you get your translations done, if you don't mind me asking?
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