First off– let me say that the paid side of the App Store is not where the real money is being made.
This is why I think the whole app economy is a house built on sand. How long are people going to be entertained by this gimmick of junk IAP?
Sure there are a handful of apps where some kind of recurring IAP actually makes sense. But the vast majority of these apps are selling virtual Tchotchkes with absolutely zero real value. Sooner or later this seems bound to lose its novelty.
More and more it seems that the only smart way to make money writing code is selling SAAS B2B apps.
It doesn't have to be junk. You can sell levels, content packs, editions, etc.
To me, the lesson is that it's really hard to get someone to part with money until they love your app-- and a crappy description and a few screenshots in the app store don't get them over that hurdle.
It'd be interesting to see Apple implement a 24-hour Trialware option-- I'd wager we'd see a huge bump in app quality AND a big bump in actual sales. Free trials are a proven way to sell software.
Physical Tchotchkes have done well for 1000s of years. Do you think people will get tired of virtual Tchotchkes and go back to physical?
I know it seems odd that people pay money for essentially tiny bits of entertainment. But the fact is that's what lots of people want. If you want to do something positive try combining the virtual Tchotchkes with something partially educational.
I think there is a big opportunity for mobile developers that build a great app that solves (or greatly alleviates) a problem for users and giving the app away for free, but make money on the back end off service providers that are willing to pay money for access to users/consumers. You'd be moving higher up the marketing food chain from simple ad displayer to lead generator.
> More and more it seems that the only smart way to make money writing code is selling SAAS B2B apps.
The problem with that is mining good ideas. I seem to only come up with "fun" ideas, i.e. games, with certainly have the aforementioned problems. Would love to come up with a sensible B2B idea one day.
> How long are people going to be entertained by this gimmick of junk IAP?
A very, very long time. It's basic psychology at work. Those little virtual trinkets are simply addictive, and it won't change as long as we keep being human beings.
As a developer and mostly as a gamer I find IAP a cancer, not just regarding the app store but on gaming console as well with all those DLC.
As a gamer I feel like I don't actually own the game, I've installed it and all, but it's like this feeling of not being "safe" and confortable while playing it. I'm always expecting to find some stupid option to request my credit card in order to upgrade my weapons or some levels so I can finish the game.
We shouldn't be loosing this sort of honesty in gaming, just give it a price for the whole thing and get out of my way.
Wonderfully put. As a developer working hard on an iOS game I feel exactly the same way.
Back in the day loading a video game was a very private, safe almost sacred experience. The world melts away and it's just you in the fantasy world the game presents to you.
For this reason I'm going with the boring old model of pay once, own the game. Everything I read says free + IAP is the way to go for maximum return, but I really feel something crucial is lost when you make the player contemplate their credit card bill while supposedly experiencing escapism.
So, yeah. The App Store is really mostly a game store. And a free game store at that.
And this is why I've lost a lot of my enthusiasm for mobile coding.
After a decade of writing web apps I've enjoyed getting close to the machine again and having the tools to write really powerful multimedia apps but the reality of the app store is that what sells are gimmicky doodads and the kind of games that you used to find on flash game sites.
Any data on how this works for kids apps? It seems like there's something of a backlash against IAP for kids-targeted apps. Paid kids apps also have the benefit that parents pay when they install the app on the device -- rather than a pay prompt coming up while a child is playing the game, which would require them to seek out their parent(s) and have them enter their password.
It seems to me that it makes more sense to make app selection and payment be a single action at the point when the payer (the parent) is looking at your app, rather than at a later point when the user is a child.
When I give my iPad to my toddler, I disable purchases (among other features) so that this isn't an issue. It is quite annoying when kids apps have links to buy more stuff on them, but it seems so widespread as to be unavoidable. I guess I could just build my own :)
I even found a kids drawing app (explicitly marketed towards kids) on Android that had very adult advertising in it. That one got deleted, for sure.
Another viewpoint: this guy claims there are about 450 paid apps on the app store that make $30K or more a month gross revenue on the App Store (if they manage to stay at that level for 3 months or so, that is over $100K gross revenue. That easily pays a developer for a year in most of the world)
If I look at http://www.neoseeker.com/Games/title/GBA/all.html, that is about half the total number of games ever made for the Gameboy Advance over a period of 11 years. I do not know that market, but I do not think you will be able to buy over 400 of those today.
From that, I get the impression that the reason it is hard to make big bucks on the App store is that it is highly competitive, not that there is no market.
I would think that a major part of such an analysis would be identifying other apps similar to your idea and evaluation of their success, lack thereof, and possible reasons for either.
Without a realistic understanding of your target market from a competitive analysis standpoint one could wind up spending cycles writing an amazing app which is doomed before it even launches.
[+] [-] cageface|13 years ago|reply
This is why I think the whole app economy is a house built on sand. How long are people going to be entertained by this gimmick of junk IAP?
Sure there are a handful of apps where some kind of recurring IAP actually makes sense. But the vast majority of these apps are selling virtual Tchotchkes with absolutely zero real value. Sooner or later this seems bound to lose its novelty.
More and more it seems that the only smart way to make money writing code is selling SAAS B2B apps.
[+] [-] webwright|13 years ago|reply
To me, the lesson is that it's really hard to get someone to part with money until they love your app-- and a crappy description and a few screenshots in the app store don't get them over that hurdle.
It'd be interesting to see Apple implement a 24-hour Trialware option-- I'd wager we'd see a huge bump in app quality AND a big bump in actual sales. Free trials are a proven way to sell software.
[+] [-] spaghetti|13 years ago|reply
I know it seems odd that people pay money for essentially tiny bits of entertainment. But the fact is that's what lots of people want. If you want to do something positive try combining the virtual Tchotchkes with something partially educational.
[+] [-] jbigelow76|13 years ago|reply
[+] [-] wlievens|13 years ago|reply
The problem with that is mining good ideas. I seem to only come up with "fun" ideas, i.e. games, with certainly have the aforementioned problems. Would love to come up with a sensible B2B idea one day.
[+] [-] jcromartie|13 years ago|reply
A very, very long time. It's basic psychology at work. Those little virtual trinkets are simply addictive, and it won't change as long as we keep being human beings.
[+] [-] phatbyte|13 years ago|reply
As a gamer I feel like I don't actually own the game, I've installed it and all, but it's like this feeling of not being "safe" and confortable while playing it. I'm always expecting to find some stupid option to request my credit card in order to upgrade my weapons or some levels so I can finish the game.
We shouldn't be loosing this sort of honesty in gaming, just give it a price for the whole thing and get out of my way.
[+] [-] 5hoom|13 years ago|reply
Back in the day loading a video game was a very private, safe almost sacred experience. The world melts away and it's just you in the fantasy world the game presents to you.
For this reason I'm going with the boring old model of pay once, own the game. Everything I read says free + IAP is the way to go for maximum return, but I really feel something crucial is lost when you make the player contemplate their credit card bill while supposedly experiencing escapism.
[+] [-] cageface|13 years ago|reply
And this is why I've lost a lot of my enthusiasm for mobile coding.
After a decade of writing web apps I've enjoyed getting close to the machine again and having the tools to write really powerful multimedia apps but the reality of the app store is that what sells are gimmicky doodads and the kind of games that you used to find on flash game sites.
[+] [-] abhiv|13 years ago|reply
It seems to me that it makes more sense to make app selection and payment be a single action at the point when the payer (the parent) is looking at your app, rather than at a later point when the user is a child.
[+] [-] jcromartie|13 years ago|reply
I even found a kids drawing app (explicitly marketed towards kids) on Android that had very adult advertising in it. That one got deleted, for sure.
[+] [-] Someone|13 years ago|reply
If I look at http://www.neoseeker.com/Games/title/GBA/all.html, that is about half the total number of games ever made for the Gameboy Advance over a period of 11 years. I do not know that market, but I do not think you will be able to buy over 400 of those today.
From that, I get the impression that the reason it is hard to make big bucks on the App store is that it is highly competitive, not that there is no market.
[+] [-] BadassFractal|13 years ago|reply
[+] [-] zupreme|13 years ago|reply
Without a realistic understanding of your target market from a competitive analysis standpoint one could wind up spending cycles writing an amazing app which is doomed before it even launches.