Given the insane exponential surge in the number of Apps and App Developers over the past couple years, it has become virtually impossible to generate legitimate revenue from PAID Apps. Given so many alternatives out there, people simply don’t want to pay for Apps any more, especially when they can get the same features and functionalities for FREE. I’m not saying anything new here – that’s a proven fact. So many App Developers are going homeless these days because they quit their job in the hopes of making a Zukerberg-esque living from selling Apps and In-App-Purchases, only to find out that you have to spend twice as much on advertising and promotions, just to generate pennies on the dollar, which after you deduct the marketing expenses, results in negative net income. That’s the whole fuckery of the App business, and it takes a whole lotta guts to stay in the game despite all the failures. Take it from me, I’m currently living this reality myself.
Whether you are a budding Entrepreneur or just someone curious about the process of App Development, Distribution, and Marketing, I believe the information I’m about to share in this blog post will definitely help you better understand the REAL COSTS of developing a successful app.
To give you a brief background about myself, I’m a former Wall Street Trader turned Online Entrepreneur. So if there’s anything that I understand, it’s NUMBERS. My job as a Trader was to Identify Opportunities, Do Extensive Research, Project The Best Possible Outcome, Buy/Sell The Financial Instrument (Stocks, Options, Futures, etc…) At The Best Available Price, and make sure that I Hedge my risk. I took these same principles of Trading and applied them to App Development.