BELLRINGER1. Fill out the App Intro: Gallery

Walk worksheet

QOtD:How can an app make

MONEY?

Agenda for Friday 1/30

BELLRINGER Mobile App Gallery Walk

OVERVIEW 4 Revenue Strategies

CARD SHARKS App EOUs

DEMO Expense Categories

CLOSING Reflection

Daily Objective: Calculate the economics of one unit for various types of mobile/web apps

APP REVENUE GENERATION STRATEGIES

The “US” Model

Paid AppUsers pay 1x to download app

Pay commission goes to a distribution platform (i.e., Apple App Store, host on server ,etc)

Paid App

Use When:➔Your content

is unique➔Your app

sessions are short

Must increase users to increase revenue

Will users understand the benefit of your app?

Paid App

Ad-Supported AppDistribute your app for free partner with an ad network – like AdMob, InMobi, or BuzzCity

Ad-Supported App

Use When:➔Long or

frequent session times

➔Native advertising embedded in the app itself

Easy to build traffic

Traffic must be high to earn revenue ($1 CPM)

How often will users open your app in a year?

Ad-Supported App

Virtual Good (Freemium) App

Distribute a free copy of the application

Premium service/features offered (or ad removal)

Virtual Good (Freemium) App

Separate App FreemiumFree trial

Unlock all app features

Free can have ads, premium = ad-free

Ex. 3 levels available in free version, pay to unlock all other levels

In-App FreemiumAdditional features or

content purchased while using app

Ex. 3 levels available in free version, pay per additional level

Freemium App

Use When:➔Product

delivers increased value over time

➔Product is viral

Is there a single moment of desire in using your app?

Virtual Good (Freemium) AppSeparate App Freemium In-App Freemium

Free

$5.99

Freemium App

Subscription App

Paying for service, not app

Recurring (monthly) payments

Subscription App

Use when:➔Users have

reason to keep paying

➔Users are willing to pay up front

Is your app providing consistent new content or service?

Subscription Apps

YOUR TURN

Fill out the EOU for your app• Heart = ParenTV• Diamond = SkateParQ• Spade = RBP• Club = FamiliesCool

App EOUs

ParenTV

ParenTV is an app Carlos developed toThis app allows customers to remotely access the TV parent control panel from their smartphone. This app costs $2.99 / month. Carlos plans to sell this app through the Apple App Store, which takes 30% commission. Additionally, Apple charges a $99 yearly fee for developers to sell apps on their distribution platform. Carlos will take a salary of $100/month for maintaining and troubleshooting the app. He will only advertise his app on free platforms and personally in his neighborhood.

SUBSCRIPTIO

N

APP

ParenTV

1 Month access to ParenTV control panel

$2.99

$0$0

$0

$0.90

30% App store

commission

$0.90$0.90

$2.09

SkateParQ

• SkateParQ is an app Kate developed to allow customers to find the nearest skate park. This app costs $6.99 to download. Additionally, once a week, customers will receive an in-depth look at a skateboard-related topic (i.e., skateboard designs, clothing, famous skateboarders, etc). Kate will be selling this app on her website. The credit card billing partner takes 2% of the app cost. Kate will take a salary of $200/month for maintaining the app and curating the content. She will need a server to host her app – the server will cost $1400 / month. She will advertise the app online ad networks – this will run her about $300 / month.

PAID

APP

SkateParQ

1 App Download

$6.99

$0$0

$0

$2.10

30% App store

commission

$2.10$2.10

$4.89

RBP-Relationship Building Program

• RBP – Relationship Building Program is an app that broadcasts podcasts relating to interests and concerns of teenagers across the country. Made by teenagers and ran by teenagers, Jack and Jill, will be hosting the program and distributing the app for free. They already have a substantial following because of their radio show and in-person talk shows through partnerships with community centers such as the Boys & Girls Club and 92 Street Y. They will have 1 banner ad on their app and will be paid by the advertising network a price of $1.50 CPM. This app will be available on Google Play, which takes 30% commission on paid apps and in-app purchases.

AD-SUPPORTED

APP

RBP

1,000 Ad Impressions

$1.50

$0$0

$0

$0

No commission on free apps

$0$0

$1.50

FamiliesCool

FamiliesCool is an app Jaimie developed to serve as a social network for families. The app is productive and fun and will offer structures for schedule sharing, communication, assigning tasks while promoting a family-friendly vibe for users of all ages. The app will be distributed for free, but there will be several premium services offered – for example, a subscription for full access to a more functional app, virtual gifts, and games. In the launch of the product, FamiliesCool will focus on family games that will cost $1.49 each.

FREEMIUM

APP

FamiliesCool

1 Unlocked Family Game

$1.49

$0$0

$0

$0.45

30% App store

commission

$0.45$0.45

$1.04

YOUR TURN

• Place your Post-It in the appropriate section on the whiteboard

App Expenses

Common App ExpensesVariable Expenses

Commission to distribution platforms (Apple App Store/Google Play)

Fixed Expenses

Server hosting when app requires data storage

Developer Program fee to sell apps (Apple App Store)

Advertising for the app

Salary for someone to troubleshoot, maintain, and update app

Web domain name & hosting (name.com)

Startup Expenses

App software development & design (howmuchtomakeanapp.com)

Software

Database cloud setup

Registration fee to sell app (Google Play)

YOUR TURN

• Front: Takeaway for your practice• Back: Wondering/Suggestion

Reflection Cards

Class Wrap-Up

Turn In: Homework: