Make Money from Mobile Apps

App DeveloperThe NY Times has an interesting article about the iEconomy and how most app developers aren’t making any money selling iPhone apps.

This is true today. The competition for apps on Apple’s app store is intense.

There used to be a time when all you had to do to make money in apps was to create a good app and post it in the app store. People would find you there, and you could make money from day one with little to no marketing.

Those days are gone.

Now, in addition to creating a good app, you need to get it noticed, so it stands out. This includes doing the following:

  1. Creating an icon for it that helps it stands out from the crowd.
  2. Testing different pricing models including freemium.
  3. Submitting the app to review sites.
  4. Creating a strategy to make it easier for it go viral.

So is it still worth it to build mobile apps on the app store?

Well the good news is that, even though it requires more work now to create a hit app than it did before on either Apple’s app store or Google’s Play market place, the user base of potential customers keeps increasing as Apple and Google sell more smart phones.

Smartphone sales 2012

So yes, the risk is much higher, but the potential reward payout has also increased in the process.

The other benefit from all this is that most app developers won’t go through the trouble of doing all those steps, which makes it easier for the few that do to stand out.

If you still think it’s too much work, then you can consider creating an app for other mobile platforms like Blackberry 10 or Windows Phone 8. Although they have less users, you would also have a lot less competition from other app developers.

 

How to Hire a Mobile App Designer

So you have an idea for that great, new mobile app. Now you need to hire someone to build it for you. Just find someone who knows how to develop apps, right?

Well, you actually have to find two different people (unless it’s a company that has both) to build the app – one to design it, and one to develop it. Usually, it’s not the same person who does both. The designer only does design, while the programmer only does the coding. So how do you manage this process?

I would recommend hiring the designer first. They will then help you mockup the design of the app. Once you are happy with the look and feel of the design, you can then hire a developer to implement this design into an actual, functioning app.

So how do you hire a designer?

If you’re looking to outsource this process, then the easiest way is to search for a designer that specializes (or has experience) in mobile apps. Take a look at their portfolio to find designs that you like and that you think could work well with your app.

If you’re still not sure if you have the right person, then pay for a few general mockups first – give them a description of what you would like one of the screens in your app to look like, and then get them to do a mockup for you. To make it easier for them, draw your design on a piece of paper and take a picture of it for them. Or you can use a more professional mockup program. If you like what you see, then continue with other screens.

One of the main reasons for going through this process, before you begin actual development of your app, is that it will help you think through each screen, where each element should be, and if the overall design and usability of your app makes sense. Chances are that you will need to make a few changes at this stage. If so, it’s a lot easier (and cheaper) to make such changes in this early stage, before you begin the development process.

Here are a couple of tips for you to consider:

  1. If you don’t see anything in your designer’s portfolio that you can reference, then try to find examples of other apps or designs on the market that you like. This will give the designer and example of the look and feel you’re looking for.
  2. Keep in mind that the designer probably knows more about design principles than you do. So when you have to make choice decisions, ask the designer for input, since their decision may be a better one than your own.

 

Mobile App Pricing and Revenue Models

We’ve all heard stories of developers making millions of dollars from apps. However not all apps make money in the same way. And in fact, there are several very popular apps out there, that don’t make any money at all. How does it all work? How much should you charge for your app?

Pay to Download: This is how most people expect app developers to make money. You create an app, set a price and then people pay that price to download the app. So how much should you charge for your app?

  1. Race to the bottom. Obviously the lower the price of your app is, the more units you will sell. The more units you sell, the more likely it is that your app can rank in the charts. The higher your app ranks in the charts, the more units it can sell. The more units it sells, the more money you make. See how that works? As a result, the price that most people charge for their apps is $0.99. $0.99 is also a price that results in a lot of impulse buys – it’s only $0.99 so people are willing to try out your app, since even if they don’t like it, they are only out $0.99.
  2. Niche Markets: There are exceptions however. If your app is in a niche market that doesn’t have many competitors, then you may find that you get the same number of downloads, whether you price it at $0.99 or $4.99 – so you may want to experiment with pricing to see which price makes you the most money.

As an example, here is a snapshot of the top selling apps (unit sales) in the US on Apple’s app store.

Top Paid Apps

If you look at the pricing, you’ll notice that 16 of the top 20 best selling apps (80%) were priced at $0.99.

Free app: There are 4 ways to make money from free apps:

  1. Make your app free, and run ads on the bottom. Unfortunately though, unless your app has broad appeal and is used by hundreds of thousands of users, then it is hard to make significant money from this model, using traditional markets. If your app is targeted at a niche market however, you may be able to manually charge for ads.
  2. Create a lite version of your app that lets users try out your key features. If it’s a game for example, the free version could let you try out the first level or two. If they like your app, then you hope that they pay full price to upgrade to the paid version. This is also knows as the freemium model. You may even find that you can get away with charging a higher price for the paid version since the user is now sold on your app.
  3. Many apps are given away for free, in order to promote a brand, website or other product. A finance website might create a financial calculator app that is free, but that promotes their website brand. Or a car company might create a driving simulator app that is free, but that promotes theirs cars.
  4. In the last few years, in-app purchases have been extremely popular. They allow developers to charge users to unlock specific features and add-ons from within the app. So now an app can be free, or for a lower price, and users only have to pay for features they will use. How popular are in-app purchases? Take a look at the picture below:

Top Grossing Apps in the app store

Even though this is the “Top Grossing Apps” list, 17 of the top 20 apps here are free! The rest of their revenue comes from in-app purchases which provides them with even more revenue than standard paid app sales.

Which of these strategies fits best for your mobile app? Are there any additional add-ons that you can include as in-app purchases to increase your revenue further?

Mobile Apps Versus Mobile Sites

FoodJingThese days more and more users are using smart phones and tablet like devices to access the internet. So while most businesses already have websites to promote themselves, they now have to make a decision on whether to create a mobile app or a mobile site for their business. What is the difference between a mobile app and a mobile site? Does your business need either one?

First, we have to define what a mobile site and mobile app are: A mobile site is a version of an existing website that is formatted to fit the smaller screens of smart phones and tablets. Some of the proper formatting elements could include:

 

  • Adjusting the width of the site, so the user just needs to scroll down. So a multi-column site could turn into a single column, so that the user doesn’t have to scroll left or right.
  • Adjusting the size of the text. Since users will be viewing your site from a smaller screen, the size of the text font you use may need to be a bit larger, so they can read your content, without having to zoom in further.
  • Removing banner ads and other distracting elements from the sidebar that may get in the way of the user being able to view your content.
  • Making use of mobile specific features like user location (for maps) or Call buttons that automatically dial phone numbers.
  • Updating elements that require a mouse (eg. popups or dropdown menus that only show when you hover over a section) to ones that respond to touch.

mobile app is a piece of software that your user would need to download onto their smart phone first, before they can use it. Usually, it is downloaded from an app store – Apple and Google have the largest app stores. In addition to the defining features of a mobile website, a mobile app provides the following additional benefits:

  • After it is downloaded, an icon for the app is created and placed on the user’s smart phone, making it easy to return to it later. (Users can also manually add icons for mobile websites, but this is not an automatic step, like it is for apps).
  • Mobile apps can do a better job of accessing additional features from the user’s mobile device, like the user’s photo library, camera, sensors (GPS, NFC etc.), contact list, SMS function etc.
  • Mobile apps can also send notifications to the user’s device, informing them of new features or offers you may have for them.
  • It is easier for users to make purchases from you from within your app – using Google or Apple’s built in payment system.
  • Many mobile apps are self contained, with all the information and data stored on the user’s device. This way information can be loaded quickly, without having to access the internet. Examples include games and utilities whose entire functionality is stored within the app.
Here is a summary of the differences between mobile websites and mobile apps:
Mobile Site Mobile App
Discoverability Google / Search Engine App Store
Usage Type URL Download app, then click on app icon to launch
Interface Standard website interface Can have custom, more unique and more interactive interface
Internet Connection Required Optional
Feature set Standard website features Can make use of phone’s custom features (eg. Camera, GPS, address book, sensors etc.)
Speed Limited by internet connection Usually faster, since most elements are stored locally on device
Approval process Not required May be required, to be listed on an app store
Compatibility All internet capable devices (if designed with mobile in mind) Requires separate design for each mobile type (eg. iOS, Android etc.)
Development Cost Low – many free resources and cheap hosting plans are available Higher – requires specialty development for each platform

 

So now that you know what the difference between a mobile website and a mobile app are, which should you get for your business? Here are some points to consider:

  • If you currently have a website, then it’s always a good thing to make sure it adapts properly to mobile devices.
  • Apps usually have some type of unique functionality that you cannot find in a website. Apple for example specifically rejects apps that just repackage content that can be found on a website.
  • If your website is primarily for marketing your company or services, then an app should not be used, as it doesn’t provide any long term, functional utility to the end user.
  • If you have some type of utility or functionality that could be accessed directly from a user’s phone, without needing to access your website, then you could consider developing a mobile app. For example, if you run a finance site, you could create a financial calculator or currency converter type app. This way you are providing utility to your user, while advertising your website in the process.
  • Is there content on your website that you could package and sell separately as a mobile app? I did this by taking content from my CLO site and releasing it as an app that users could purchase. The content is the same as on the website, but is packaged in an easy to consume mobile app.

Outsourcing Tips: How to Weed Out Proposals from your Description

When posting a project on an outsourcing site, expect to receive a lot of proposals that you have to read through. This can be a lot of work – how do you decide which company to hire? 

Here is a quick tip you can use to help you weed out a lot of proposals.

A lot of outsourcing companies bid on a lot of projects at once. In order for them to do so, they frequently bid without reading the details of the project description. You can tell who these companies are by the generic copy in their proposals.

To weed out these companies, ask a very specific question in your project description that they would need to answer in their proposal. The question could be related to your project like:

Please let me know in your proposal, what platform you would recommend for this project?

Please let me know if your proposal, what design choice you would recommend and why.

Or if the project is fairly straight forward, you can ask an unrelated question like:

What is your favorite fruit, and why?

What kind of music do you like to listen to?

The answer is not important (although it can help you gauge their personality). You are more interested in seeing if they actually answered your question or not.

You may be surprised to find how many proposals do not answer these questions. If they can’t follow your instructions in their initial proposal, what kind of quality can you expect from them in your actual project?

So now, instead of having to choose from 20 different companies, you may only have to choose between 5 or 6.

Good luck with your project, and let me know if there are any questions on outsourcing that I can answer for you.

 

8 Tips to Manage your Habits – Good and Bad

One benefit of being an entrepreneur is that you don’t have a boss telling you what to do. However a downside of being an entrepreneur is that you don’t have a boss telling you what to do. Which means you need to know what to do each day. Is what you are doing now the most important thing you could be doing for your business?

It is very easy these days to get overcome by meaningless distractions and come home at the end of day without having been very productive at all. There are tasks we know we should be doing but yet find hard to do. Maybe it’s cold calling clients. Or going to a networking meeting that you don’t feel like attending. Or perhaps just doing more reading in your field.

What steps can we take to increase our productivity by replacing bad habits with good ones?

Recognize the Pain versus Pleasure Factors

Every decision we make is governed by pain or pleasure. All the small decisions you make either move you towards pleasure, or move you away from pain. Your mind is constantly evaluating which factor is greater in order to make the best decision.

For example, if I place a cookie in front of you, you need to evaluate whether the pleasure of eating that cookie is greater than the pain of gaining weight from it. Overweight people obviously value the pleasure more than the pain.

What about smoking? Those who smoke value the pleasure of smoking greater than the pain of any health side effects.

By recognizing this decision process, you can evaluate how much weight you are giving to certain priorities, which should help you make better decisions.

Keep in mind also that what is pleasure to one person can be very different for someone else, so it is important to recognize what kinds of things motivate you to work harder. Some people are more motivated by moving away from pain than they are by pleasure. Some people work better under a lot of pressure, whereas others can’t compete in such situations.

Once you know which type of person you are, you’ll be better equipped to get things done!

Create Lists

When it becomes to big projects that look overwhelming, you can make things a lot more manageable by breaking the project into small, manageable tasks. So take a 3 month project and figure out what needs to be done each month. Then break down those tasks further into weekly and daily tasks. Now the pressure of completing your daily tasks should be a lot less than trying to complete the entire project all at once.

Create Barriers for Bad Habits

Are there bad habits you have that are killing your productivity? Perhaps you check Facebook too often. Or maybe you take one too many smoke breaks. What can you do to reduce these bad habits?

One method is to create barriers for your bad habits.

If you have Facebook constantly open in a separate browser tab, or if you have your phone set to automatically notify you of incoming Facebook posts, then it becomes very easy (too easy) for you to become distracted, since it’s always just one click or glance away. What if you didn’t have it in a separate tab? What if you shut off your Facebook notifications.

Now, all of a sudden it becomes harder to check Facebook since it involves extra steps. Maybe now the pain of these extra steps becomes higher than what pleasure you may gain from checking Facebook.

So figure out all the bad habits you have on a daily basis, and erect barriers to make it more difficult for you to do them. If you’re a smoker, then maybe buy smaller packs of cigarettes. Perhaps the pain of having to go to the store each time to get new cigarettes becomes greater than the pleasure of having a quick smoke.

You can use the same approach to keep junk food out of your house. This way it becomes harder to satisfy that midnight craving.

Decrease Barriers for Good Habits

Want to read more in your chosen field? Have your book ready, in the right chapter sitting right on your desk. Now it becomes much easier to pick it up and start reading.

Want to eat more healthily? What if your fridge was always stocked with healthy food. Now the pain of having to go to the store to buy junk food is more than the pain of eating a carrot stick from your fridge.

See how this works?

Use Carrots and Sticks

The idea here is to reward yourself for reaching certain goals and potentially punish yourself for not doing so. For example, if you make 5 sales call this week, then treat yourself out to dinner. If you don’t send out all the emails you were supposed to, then no beers for you next week.

Obviously you’ll need to be honest with yourself about whether you’re meeting or not meeting your goals and whether you actually follow through on the punishments or not. Depending on your personality, you may find that you respond better to rewards than to punishments.

Create Deadlines

For more important goals in your life, create a deadline for when you want to achieve it. Make sure you know when that deadline is, and and as stated above, create consequences for not reaching that deadline. Some people work better when they have clear targets with clear deadlines to hit. Without a deadline, you may find some tasks languishing forever.

Add Peer Pressure

If you find yourself not able to give yourself enough pressure to meet your productivity goals, then you can add pressure on yourself by making your goals public. Let your coworkers, employees, family or friends know what your goals are. You may find that this added pressure of not losing face to them is enough to boost your productivity.

Follow Up

At the end of the day, you can make all the lists and deadlines you want, but it won’t mean anything if you’re not following up on them. What tasks did you complete and which ones are still not done? Did you meet the goals you set for yourself? If not, did you follow through with the punishment you set for yourself?

As mentioned before, you’ll find yourself responding better to some aspects of the above than others, so experiment to see which techniques produce the best results for you, then implement them as a regular part of your routine.

Imagine how much more you could accomplish in life if you were able to increase your productivity by even 10% or 20% per day, then extrapolate that tothe rest of your working life!