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by 10char 5586 days ago
It's certainly possible to make a living on the App Store, but you can't depend on a megahit like Angry Birds or Tiny Wings.

My theory is that you'll need probably a dozen or so apps in the $1.99 - $4.99 range. The $0.99 point has too many psychological problems in terms of perceived value and competition to be worth it IMO. Ads also aren't a viable source of steady revenue for any non-Top 100 apps.

Each of my (paid) apps get downloaded around 10 times a day (and trust me, I have some pretty obscure apps [1]), so this theory is based on 10 apps * 10 downloads/day * $2.99 avg price * .7 Apple Tax = $210/day = $75k a year. That's not quite Google money, but it's all you, which (for me) makes up for the other $40k.

So there you have it: have a dozen moderate, long-tail successes to make good money on the App Store. And with what, 80 million? iOS devices in the wild, how hard is 10 downloads per day? (easier said then done, right? ;))

Other tips:

- MOST IMPORTANT: be well-designed. App Store buyers love that (take a look at Dylan's app, it's very pretty).

- If you can't design, then try stick with Apple's default look. It might not be unique, but it definitely won't be ugly.

- Have a reusable app design. It's so convenient to be able to write the core app once and just swap out data sources for each new app.

- Build apps fast and be agile; don't focus on one app for months on end without launching. MVP and get real-world feedback.

- Make it clear that your users can get in touch with you via email or Twitter. And then respond to them!

- Update often!

- Try Lite versions of your apps with In-App upgrades.

Full disclosure: this is what I'm trying to do :)

[1]: http://itunes.apple.com/us/app/brocabulary-new-and-improved/...

4 comments

> and trust me, I have some pretty obscure apps

This is a very good point. Everyone gets fixated on being the top-whatever in the category but the key is to be in the top 5 for your niche category. For example, search Salsa. I have on good authority that one of those top 5 paid apps was selling in excess of several thousand copies a month.

Do your market research. Dominate your niche. Compete in that niche. The App Store is a closed marketplace - people are looking for their niche interest. Some niches are more profitable than others.

> But I can earn twice as much in the corporate world. (Software engineers are paid well.)

I don't know why he is doing this silly line of argument. This is mostly passive income. He creates a product and it sells itself (with updates irregularly). When you work for a company, you trade time for money. Time == Money in the corporate world. That is a linear relationship. The beauty of marketing and creating your own product is that the linear relationship can become geometric - you can change the equation - with hard work, luck, and delivering what customers want.

And stop thinking of apps as revenue generators and start thinking of them as lead generators, portfolio pieces. Not all businesses make money from product.

> This is mostly passive income.

As a non-iOS developer I don't really know if an app that's 1 years old and has not been updated will continue to generate sales.

I make lots of comments on HN. Each of those is theoretically `passive income` for karma, but that doesn't mean I will keep getting karma for those comments...

Yes they do, but how much depends on your rating and amount of competition. A few months ago I killed a $1.99 app that hadn't been updated in over a year, yet 3-4 people were still buying it a day. I just felt bad charging for something I had no plans to go back to, and that had become a lot less useful after changes Apple made in iOS4.

Clearly you're not going to live on $5 a day, but I think a good strategy is to build a decent number of smaller "library" apps while working to fry bigger fish.

> - Build apps fast and be agile; don't focus on one app for months on end without launching. MVP and get real-world feedback.

In general I believe the whole lean/MVP thing, but I wonder about its applicability in the app store.

Launching without a fully baked product may hamstring you for a while if you get bad reviews/ratings upfront. Also, by having a great product from the start, you may be able to get ranked higher because you get free exposure in the "new" lists. If you have a barebones product, aren't you essentially wasting the free exposure you get for being a new app (that you won't get when you update)?

Very true point, as it's a crucial difference between your typical web app launch and an App Store launch.

Example: When I launched Brocabulary two years ago, I thought it would be a good idea to have a "free week" promotion. Results: 150+ reviews permanently attached to the rating that are far from representative of the current product. And a good chunk of those reviews are (justly) not so hot.

Ratings and reviews are killer on the App Store. Bad, edge-case experiences only really hurt you on the web if they're by a famous blogger or the like. On the App Store, you get a bad review because someone didn't read the description that says the app doesn't work on older generation iPod Touches without microphones and it's stuck there forever. It's just what comes with the territory.

Never launch a bad product, but there are many articles and examples that point out why it isn't a fantastic idea to build on an unproven idea for months. Just like on the web, you should go for a well-executed MVP with steady improvement. Maybe a little more than you might on the web, but the idea still applies.

Plus, with each update, you get a chance to reset your public reviews and ratings (after you hit a certain limit, Apple will display the average score only for that version). I wish the author had overlayed his update releases on the graph, as I bet that many of those spikes come from them.

Ejemplo: Path. Their launch product was pretty minimal, but just useable enough. They've released solid update after update adding new features. Now, it helps that they've got some players backing them and probably got Apple's attention ahead of time, but I think it's still a strategy worth looking at.

Ejemplo: Rdio. I've been an Rdio subscriber since when they launched last summer, and their iPhone app wasn't so great when it first came out. It worked, but all it could really do was play songs. Month after month a new update came out that added new, much-needed features. Hell, they only hit 1.0 a few weeks ago and it's obvious that all the iterations have amounted to a solid app.

There is a slight difference between shipping something broken and shipping something that gets updated, frequently. One thing I learned from Apple is that it's more important that you ship something that works comepletely rather than feature complete (see copy and paste).

I like buying apps that I know are constantly in development because I know the developer is still interested and still adding features. Also, the apps that get updated tend to have more exposure and show up in lists more readily.

Great advice!

It's clear that I'm not going to make a living from just River of News. This is why I slowed down on updates to River of News and have been working on other projects. But I've paid a price for that. My sales precisely track the frequency and quality of the product updates I've done. What buzz and momentum I achieved has been lost and sales have tapered down. My plan is to build a stable of products but I've learned now that I need to continue to show love to the existing products. Like most developers, I prefer to fully immerse myself in one task but I'm going to have to change my way of working.

You're app looks pretty funny.

It seems like the development cost/time is pretty low on that app as well. Good idea.

I was previously working on an early childhood education app. I didn't get very far until the numbers just didn't make sense. Perhaps I was being too ambitious but the velopment costs were extremely high, and I didn't think I could see it for more than $1.99. So I had to sell quite a few to even turn a profit. It's interesting though that you say even you're obscure apps sell 10 per day. During my research I found many that sold one or two per week. So you must be doing something right.

>early childhood education app

>I didn't think I could see it for more than $1.99

Patio11 sells a bingo card creator app for teachers for $30. You can charge $20 easily if you can demonstrate value to parents (parents spend a lot more than that on their children, heck an "educational" DVD costs more than that easily).

you're = you are

I think you meant your.