Invisible app business how even an app with very few downloads can build a successful business

Invisible App Business: How Even an App with Very Few Downloads Can Build a Successful Business

Puneet Yamparala, App Entrepreneurs Association

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Recently Jason Spero, from Google mentioned in his presentation that developers need to look

beyond downloads to build their app businesses.


Carter Thomas, who is the king of reskinning mentioned the same thing many months ago.


So what do they really mean by this?

How do you build a business without worrying about downloads?


Current App Monetization Models


95% of the app developers currently make money using one of the following strategies:


1. Monetizing with Ads – This is the most preferred medium of monetizing an app for app

entrepreneurs. An app developer integrates …


… an Ad Network SDK in the app and then the app entrepreneur is paid based on the number of views

the ads receive. The payment is usually for …


… every 1,000 views and referred to as CPM (Cost Per Milli). The typical CPM rates which I have been

seeing range between $0.5 to $10.


2. Monetizing with In- App Purchases – In-App purchases have very quickly turned into a preferred medium to monetize the apps.


A lot of app developers release a free app and limit the functionality, slow down progress or

show annoying ads in their free app.


If a user wants to get rid of these constraints or annoyances, the user can make a payment inside

the app.


A well-implemented in-app purchase actually works pretty well and can generate a decent amount of revenue to the app entrepreneur.


3. Monetizing with Paid Apps – This strategy is losing its appeal as more and more apps move towards in-app

purchases as their preferred strategy to monetize apps.


All the three strategies mentioned above work decently well. But the issue with all the above

strategies is …


… that each one of the above strategies has a very specific requirement to be successful.


Succeeding with Current App Monetization Models


Let us take a look at what each monetization strategy needs to be really successful.

• Ads – For an app entrepreneur to make serious money with ads, the app needs to have been

downloaded at least 100,000 times.


Also just getting downloads is not good enough. Most apps lose a majority of their users very quickly. They

have low retention and engagement metrics.


Since your revenues from ads depend on the number of sessions, if your app loses users or has low engagement

then you are not going to make any money from your app.


• In-App Purchases – This type of monetization is the most profitable but at the same time also the most difficult to get right. This strategy also relies on …


… specific types of individuals to make money. The real money through in-app purchases is made when a game

is able to acquire users who are referred to as “Whales”.


Whales are the people who spend large amounts of money to purchase virtual currency to rapidly

progress through an app or a game.


The truth is that most app entrepreneurs are just not sophisticated enough to identify the “whales”

and nurture them to make big money.


• Paid Apps – There is not much point discussing this strategy, as it is widely known that the whole app store

is moving towards the freemium model where …


… app entrepreneurs are looking for alternate ways to make money, rather than making money by charging

people for downloading the apps.


Enter the Invisible Way To Make Money From Apps


Over the last 6 months I have helped about 234 app entrepreneurs with their businesses. While helping all

these app entrepreneurs, one thing which …


… always stood out was that, it always felt a bit weird that app entrepreneurs who had 10,000

downloads did not make much money.


I decided that this had to change and as a result started working with a few other entrepreneurs to create a

business model which allowed app entrepreneurs with …


… even low number of downloads to make good money. We call this model the

Invisible Business Model for Apps.


This business model basically makes it possible for app entrepreneurs with even low download counts to make some good money. The app entrepreneurs also do not

need to …


… worry about the ad networks, user engagement, retention and a whole lot of other issues plaguing other

apps.

This business model is truly a game changer.


Personal Experience - I have personally applied this to a shopping category app I launched recently.

This app is still in its first version and full of bugs.


So I haven’t yet started marketing this app very actively. The app has just about 600 downloads.

The worst part is the app is …


… getting hammered in the reviews BUT I make about $100 for every 40 downloads. I have

the opportunity …


… to make lots more from these same people even AFTER they have uninstalled my app.


Free Guide to Invisible Business Model For Apps


I have documented the complete Invisible Business Model for Apps in the free guide which

can be accessed below.


In the guide I walk you through the 5 steps involved in setting up complete business model.

>>>>> http://bit.ly/1ALnVXW<<<<<

For More App Business AdviceApp Entrepreneurs Associationhttp://appentrepreneursassociation.com


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Invisible app business how even an app with very few downloads can build a successful business