Kerching! How to monetise your apps

The decline of advertising and alternative business models

Advertising

Source Techcrunch

The Advertising Model ‘0870’

0870 Download Stats

From end of Sept to end of October, 2009 www.simonmaddox.com

Downloads since launch

MoneySavingExpert.comFeatured in Sunday Times

0870 by numbers

• iPhone downloads: 427,484– Best chart position: 4– Approval time: 429 days

• Android downloads: 14,244– Best chart position: 21– Approval time: 1 second

made $2,590.63 so far

Affiliate Network

• You have to be really good at targeting the people who will buy

Some good reasons why to join our programme:

We pay affiliates up to 14% commission on confirmed sales!

Full product feed is available

Our website Average order value is £97

Source Affiliate Network

Why not start you own?

Fremium/Premium

•Make you product so addictive/awesome that you cant live without it/ or only extend to other devices (mobile) if you pay

•Paywall issue 90+% of people will not pay so make sure that the 10% will pay enough to cover the costs of maintaining the 90%

Subscription / Membership

• Best business model (MBA talk!)

• Lots of people have subscriptions that never/rarely use the service

• Remember you need to manage them (failed, expired payment details, etc)

One off purchases

• One of the oldest business models

• Don’t forget the supply chain learn from the old world also online fraud needs to managed and controlled

• Virtual Good have an upside (freeish) and a down side in that almost nobody protects you from fraud and piracy

Being a Marketplace• Taking a cut• Need to have a community that

wants to buy from each other.• Think how easy it is for the big

boys to eat your lunch.

Using a Marketplace• Many people have made their

fortunes!• Take into account the costs of

sale• Remember the Dictionary!

Donations/fundraising

• Donate buttons are very opensource but work for some

• Companies are trying this for content as are artists and publishers. (Radiohead average $6)

Merchandising

• Most of the linux distro’s sell Tshirts

• You need a cool logo and a following

• Can use other sites to create and distribute

• Why not make your Digital Physical

Events

• If you have enough followers

• Really hard work…….• So many events now days so

how to you differentiate yourself?

Rev sharing

• Connect Buyers and Sellers and take a cut

• Consider how you reconcile and get paid

Build and Exit(run!)

• Many example of success• Many more examples of failures• Remember to eat

HOW CAN PAYPAL HELP?Time for shameless pluging…..

Affiliate Network

• One transaction – multiple simultaneous receivers – only primary visible to the buyer

Fremium/Premium/Subscription / Membership

PayPal AP Preapprovals

Like subscriptions but far more flexible.

Permission to charge the Buyer whenever required up to a maximum limit:

Multiple Products at PayPal

One off purchases/Merchandising/Events

• WebSite Payment Standard

• Express Checkout

• PayPal for Digital goods

• Micropayments

Being a MarketplaceAdaptive Payments

Using a Marketplace

Donations/fundraising

Rev sharing

• Connect Buyers and Sellers and take a cut

• Adaptive Payments Split and Parallel.

Build and Exit(run!)

contact

• John@x.com• Johnxcom• www.x.com