How To Make Money In the Mobile Apps Business

Quick OverviewMarket RecapTop Business Models Discovery - Growth MechanismsBest Practices for Any App

How Many Apps? Over 1 million apps in apps stores worldwide 59.6% of the apps are iOS Android is 32.3%, Blackberry 4.4% Est. 1,000 new apps added daily to iOS Est. 1,400 new apps a day added on Android

market Top categories include (By volume of apps)

Entertainment - 16.78% Games – 12.36% Lifestyle – 8.02% Utilities – 7.13%

Where is the Demand?

Top Business Models

88% of top 250 grossing iOS apps are freemium Android piracy on the rise, advertising it is!

Paid = PremiumSome Aspects of Premium Apps:Higher retention rates of usersPerception of value is controlled

by price and app store collateralRevenue is realized only oncePaid apps are costly to promote

Premium – What Can You ControlPrice PointIcon, Keywords, Description, ScreenshotsApp Content

Premium – What Cant You Control Placement/Features # of installs Rating

Premium Best PracticesLower the barrier to entry, make

a free version to drive visibilityLaunch with a high price point,

never start with a sale unless you have built in brand awareness

Cross promotion in all existing applications

Freemium – Free with StringsAspects of FreemiumBarrier to entry is lowLifetime value is revenue

measurementPotentially unlimited max

revenue from userPredictable ROI against paid

marketing

Freemium – What Can You Control# of InstallsIcon, Keywords, Description, ScreenshotsApp ContentIAP pricing, ad placements, frequencyRetention

Freemium – What Cant You Control Features/Placement Ratings

Freemium Best PracticesNever limit how much you will

let people payUse Metrics to verify your

businessConsumption, sources and sinks

Incent sharing and activity with virtual goods/other value

Tricks to RetentionIncent return behavior/usageGive reasons to re-enterFocus heavily on the first minute

of experienceBetter to keep people then make

them stayMeasure on day, week, month

and other

Mobile Monday LansingMarch 26th 2012

Reference