So you want to get rick quick, eh? iPhone apps are certainly the way to do it. Knock up a popular one, and you’ll soon be raking in hundreds, if not thousands each month. But it’s not as simple as bashing out just any old code and slapping a price tag on it. Here are our top tips for making a profitable iPhone app.
1. Do one thing very well
Resist the urge to bulk up your app with extra features. Whatever it does, make it small, simple and very efficient. Whether it’s providing travel information, entertaining iPhone owners on the move, or simply making fart noises, the smaller it is the faster it will run, and by keeping the footprint small, you’ll also ensure it can be downloaded by the mobile App Store as well as desktop iTunes. That last consideration will reduce the risk of potential users not having enough free space for it on their phone too. Don’t let extra features creep in later into its development either. If they’re genuinely important, save them, work on them and release them in the next update, or as part of a “premium” app which you can charge more for.
2. Time your price cuts well
According to iPhone analytics firm Pinch Media, a well-timed price cut can send demand for your app sky high, increasing demand by a stonking 130%. But do it too early, and you’ll be cutting off the larger revenues available at the beginning of your app’s life cycle. Typically, the best time to slash prices is as demand begins to plateau. It might not sound like rocket science, but plenty of developers offer their apps free “for a limited time” to begin with, and while it builds buzz around the app, it also means they’re losing out on the meatier profit margins available at the beginning.
3. Make the most of your popularity
So your app is available, and people are downloading it. Unfortunately, the App Store is getting pretty crowded, so if you’re lucky enough to find yourself on the “most popular” list, make the most of it. You’ll need over 20,000 downloads to earn a place in the Top 25 list, and once you’re there, you’ll see a natural increase in downloads as your app gets more exposure. However, that’ll drop off again once it has sat there for a while. It won’t be long before your app has achieved maximum exposure and its popularity will begin to wane. Now is the perfect time to release the new, updated version you’ve been working on since the first version was released. You could even build an “alert” into the existing app to flag up the new version’s availability and spur on more downloads to catapult yourself back up the rankings.
4. Don’t give anything away
It’s tempting to think that by giving your app away you’ll be able to earn a solid, and regular income from ads. Unfortunately, in most cases, that simply isn’t true. Currently, mobile advertisers are offering rates of $0.50 to $2.00 CPM (cost per thousand impressions). Pinch Media’s iPhone app analytics reports that to match the income of even the cheapest paid app, a free app with ads would need to command a CPM of more like $8.75, based on the average number of times a user opens free apps on their iPhone. What’s more, since usage of all iPhone apps (both paid for and free) drops off dramatically after they are first downloaded, it’s unlikely ad income will continue at that rate for very long. In short, unless your app is offering something that’s available free elsewhere anyway, always slap a price tag on it and guarantee your income.
5. Find new ways to make money
Charging for your app and considering ads aren’t the only ways to make the iPhone pay. Just like a website, it’s possible to earn revenue in other ways. Maybe you could charge a monthly fee for premium features, or let users download extra content in paid for chunks. If your app recommends products or services why not cash in on affiliate programmes being run by retailers, all you need to do is build the appropriate links into your app and watch the money roll in.
