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: