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The Blog of Tim Ferriss - Experiments in Lifestyle Design How to Build an App Empire: Can You Create The Next Instagram? Written by Tim Ferriss Topics: 4-Hour Case Studies, Entrepreneurship Chad Mureta runs his seven-figure app business from his iPhone. (Photo: Jorge Quinteros). I first met Chad Mureta in Napa Valley in 2011. Two years prior, he had been in a horrible car accident. He’d lost control of his truck in at attempt to avoid a deer, hit a median, and flipped four times, nearly destroying his dominant arm in the wreckage. While in the hospital for a lengthy recovery, a friend gave him an article about the app market. Shortly thereafter, Chad began designing and developing apps. His results? “In just over two years, I’ve created and sold three app companies that have generated millions in revenue. Two months after launching my first company, one of my apps averaged $30,000 a month in profit. In December of 2010, the company’s monthly income had reached $120,000. In all, I’ve developed more than 40 apps and have had more than 35 million app downloads across the globe. Over 90 percent of my apps were successful and made money.” After finishing rehab, Chad was able to leave his real estate company, where he’d been working 70 hours a week, to run his app business from his iPhone… in less than 5 hours per week. “Apps” are the new, new thing, thanks to major successes like Draw Something ( bought by Zynga for $210 million) and Instagram ( bought by Facebook for $1 billion), among others. But for all the hype and promise, few people actually know how to create something that gets traction. About this ad How to Build an App Empire: Can You Create The Next Instagram? http://www.fourhourworkweek.com/blog/2012/04/22/how-to-build-an... 1 of 23 30-11-2012 23:01

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Page 1: How to Build an App Empire_ Can You Create the Next Instagram

The Blog of Tim Ferriss - Experiments in Lifestyle Design

How to Build an App Empire: Can You CreateThe Next Instagram?

Written by Tim Ferriss Topics: 4-Hour Case Studies, Entrepreneurship

Chad Mureta runs his seven-figure app business from his iPhone. (Photo: Jorge Quinteros).

I first met Chad Mureta in Napa Valley in 2011.

Two years prior, he had been in a horrible car accident. He’d lost control of his truck in at

attempt to avoid a deer, hit a median, and flipped four times, nearly destroying his

dominant arm in the wreckage.

While in the hospital for a lengthy recovery, a friend gave him an article about the app

market. Shortly thereafter, Chad began designing and developing apps. His results?

“In just over two years, I’ve created and sold three app companies that have

generated millions in revenue. Two months after launching my first

company, one of my apps averaged $30,000 a month in profit. In December

of 2010, the company’s monthly income had reached $120,000. In all, I’ve

developed more than 40 apps and have had more than 35 million app

downloads across the globe. Over 90 percent of my apps were successful

and made money.”

After finishing rehab, Chad was able to leave his real estate company, where he’d been

working 70 hours a week, to run his app business from his iPhone… in less than 5 hours

per week.

“Apps” are the new, new thing, thanks to major successes like Draw Something (bought

by Zynga for $210 million) and Instagram (bought by Facebook for $1 billion), among

others. But for all the hype and promise, few people actually know how to create

something that gets traction.

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In this post, Chad will discuss his step-by-step formula for rapid app development and

sales optimization. It covers real-world case studies and the details you usually don’t see:

early prototype sketches, screenshots, how to code if you don’t know how to code, and

much more.

Last but not least, don’t miss the competition at the end. If you’ve ever thought “I should

make an app that…,” this one is for you…

Enter Chad Mureta

When you are on your deathbed, will you be able to say you lived a fulfilled life?

I nearly couldn’t.

I started my app business from a hospital bed, wondering if I even wanted to live. I had

barely survived a terrible car accident that shattered my left arm. I had gone through two

groundbreaking operations, and spent 18 months in painful rehabilitation.

With limited insurance, I had racked up $100,000 in medical bills. Even though I survived,

I had no clue how to get out of the deep hole I felt trapped in. I was moved to a physical

rehabilitation center and worked on reconstructing my body, my mind, and ultimately my

life. While I was there, I read two books that made a huge impact: Unlimited Power

strengthened my thought processes, and The 4-Hour Workweek inspired me to pursue

lifestyle freedom.

During that time, a good friend gave me an article about “appreneurs” and told me I

should consider getting into the business. I learned that most appreneurs were one- or

two-person teams with low costs, and the successful ones were bringing in millions in

profits. Still in my hospital bed, in a state of semi-coherence from the pain medication, I

began drawing up ideas for apps.

Three weeks after my final surgery, desperate, broke, and grasping at straws, I borrowed

$1,800 from my stepdad and jumped into the app business. Fortunately, taking that leap

was the best decision I’ve ever made…

These days, my life is about doing what I love while earning easy income. I run my

business from my iPhone, working in a virtual world while earning real dollars. I am part of

a growing community of “appreneurs,” entrepreneurs who make money from applications

that are used on iPhones, iPads, iPods, Droids, and Blackberries. As of this writing, the

world’s youngest appreneur is nine years old, and the oldest is 80!

Appreneurs earn money while creating lifestyles of great freedom. Two of my appreneur

friends spend several months of the year doing nonprofit work in Vietnam, while their

businesses are generating seven-figure incomes. Another is taking his kids to see the

Seven Wonders of the World, creating priceless memories with his family. Still another

friend goes backpacking throughout Europe with his wife for most of the year. As for me,

I’ve hiked in the Australian Outback, trekked with Aborigines across the desert, climbed in

the Rocky Mountains, got certified in solo skydiving, heli-skied in Canada, walked on fire,

and most important of all, learned not to take life so seriously.

No matter what your dream lifestyle is, you can have it as an appreneur.

The Opportunity for Appreneurs

There are currently more than 4.6 billion cell phones being used worldwide, enough for

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two-thirds of the people on Earth. The app market is literally the fastest growing industry

in history, with no signs of slowing down. Now is the perfect time to jump into the mobile

game.

What happened during the early days of the Internet, with the creation of websites like

Google and eBay, is exactly what’s happening today with apps and mobile technology.

The only difference is that we have experienced the rise of the Internet and are

conditioned to react more quickly to the app revolution. This means that the app world is

running light years ahead of the Internet, when it was at the same development stage.

Developing apps is your chance to jump ahead of the masses and not be left behind,

saying years from now, “I wish I had…”

Common Objections

“I’m not a tech person. I have no experience in this market.”

I was in the same spot, and I still don’t know how to write code. But I found

successful people to learn from, emulated their models, and hired

programmers and designers who could execute my ideas. If you can draw

your idea on a piece of paper, you can successfully build an app.

“The app market has too much competition. I don’t stand a chance.”

This industry is just getting started– it’s less than four years old! What

makes the app business unique is that the big players are on the same

playing field as everyone else. They have the same questions and

challenges as you and I will have.

“I don’t have the money.”

You don’t need a lot of money to start. It costs anywhere from $500 to

$5,000 to develop simple apps. As soon as you launch your app

(depending on your sales), you could see money hit your bank account

within two months.

“It’s difficult… I don’t understand it… I’m not smart enough.”

Just like everything you’ve learned in life, you have to start somewhere.

Fortunately, running an app business is far easier than almost every other

type of business. Apple and Google handle all of the distribution, so you

can spend your time creating apps and marketing them. And you don’t have

to come up with new, innovative ideas. If you can improve on existing app

ideas, you can make money.

Many people are joining the app gold rush with a get-rich-quick mentality and unrealistic

expectations. Maintaining an optimistic perspective is important, but so is understanding

that you will have to put in work. My goal in this post is to help you think like a business

owner, and show you the map I’ve used to find “the gold.” This is not a one-time app

lottery, and you can’t treat it as such. If you think of this endeavor as a long-term

business, it will grow and become a sustainable source of income.

Still interested? Then let’s get started!

Step 1: Get a Feel for the Market

As with any business, your success will be directly related to your understanding of the

marketplace. The App Store is the marketplace of the app business, so in order to

understand the market, we have to study the App Store. This seems rather obvious, but

you wouldn’t believe how many developers I meet that don’t understand this concept.

They don’t watch the market, follow the most successful apps, or try to figure out why

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those apps are successful.

In order to become a great app supplier, you must first become an app addict. That

means spending at least 2-4 weeks researching the market while downloading and

playing with tons of apps (give yourself an app budget of $100 to start). This training

period is an investment in your expertise, which will become the lifeblood of your success.

The more hours you rack up playing around and studying successful apps, the better

you’ll be able to understand their common traits and what users desire.

So, how do you keep pace with the market? The best way is to study Apple’s cheat sheet

constantly. The App Store displays the top paid, top free, and top-grossing apps (the apps

that make the most money, including free apps), almost in real-time. Apple provides the

same lists in the individual app categories.

These charts are golden because they tell us volumes about the market. The best part is

this information is freely accessible to anyone, at any moment (unlike the market info for

basically every other industry).

Review these charts frequently, and keep a notebook of potential trends you spot. Doing

this repeatedly will educate you on successful app design, marketing, and various pricing

models. The research you’re doing is simple, costs nothing, and it’s actually fun!

Here are some questions to ask while you’re researching successful apps in the market:

Why is this app successful?1.What is its rank and has it been consistent?2.Why do people want this app? (Look at the reviews.)3.Has this app made the customer a raving fan?4.Does this app provoke an impulse buy?5.Does this app meet any of my needs?6.Did I become a raving fan after trying it?7.Will the customer use it again?8.How are they marketing to their customers? (Check out the screenshots, icon design, and descriptions.)

9.

What is the competitive advantage of this app?10.

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What does this app cost? Are there in-app purchases?Advertisements?

11.

Most developers will build an app and expect tons of people to find and download it right

away. That rarely happens. You have to figure out what people are interested in and the

kinds of apps they’re downloading first, then you build your app based on that insight.

Once you’ve put in the necessary 2-4 weeks of research and feel you have a decent

grasp on the market, it will be time to look back on the trends you discovered and explore

some ideas for potential apps you can develop.

Step 2: Align Your Ideas with Successful Apps

How do you know if the market wants your app? Again, you’ll need to look at the Top

Apps chart. Are apps like the one you want to create listed there? If yes, you’ve got a

potential winner. If not, keep looking. It’s that simple.

Don’t hate; Emulate! When you follow in the footsteps of successful apps, you will have a

better chance of succeeding because these apps have proven demand and an existing

user base. This takes the guesswork out of creating great app ideas.

I can’t stress the importance of emulating existing apps enough. It’s easy for people to fall

in love with their own idea, even if the market doesn’t show an appetite for it. But this is

one of the costliest errors you can make.

Unfortunately, developers make this mistake all the time. They focus on generating

original ideas and spend a lot of time and effort creating those apps. When it doesn’t work

out, they go to the next untested idea, instead of learning from the market. Often times,

they repeat this cycle until they run out of money and dismiss the app game. This doesn’t

have to be your experience.

A personal example of how to successfully emulate competitors is my Emoji app. First, I

took a close look at what the market offered and downloaded all the major emoticon apps.

I liked what I saw, but noticed that there was a lack of variety and limited functionality.

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Screenshots from a competing Emoji app. The app (left) is opened once to provide the user with instructions

on how to enable the Emoji keyboard (right).

I wondered how I could improve upon these existing apps, given that the Emoji keyboard

had a limited number of emoticons that couldn’t be increased. I was also curious how

profitable these apps could be if they were only being used once.

I kept brainstorming until it hit me. I couldn’t add more emoticons to the Emoji keyboard,

but I could include unlimited emoticons within my app that people could send as images

via text message or email.

I created an app that not only enabled the Emoji keyboard, but also contained an

additional 450 emoticons within the app itself, which could be shared via SMS, e-mail,

Facebook, and so on. The app was used constantly since users had to return to the app

to send an emoticon.

Screenshots of my Emoji app.

The Emoji app was developed in two weeks. It followed the freemium model, meaning

free with an in-app purchase option. The app hit the number one spot in the App Store’s

productivity category and the number 12 spot in the top free overall category within six

days, raking in nearly $500 per day. Bingo.

Whenever you decide to look into emulating an app, ask yourself these six questions:

Why are people purchasing this?1.Can I do something to emulate this idea and take it to anotherlevel?

2.

What other ideas would this app’s demographic like?3.How many other similar apps are in the market? (VisitTopAppCharts.com to find out.)

4.

How successful and consistent have they been?5.How does their marketing and pricing model work?6.

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Step 3: Design Your App’s Experience

You’ve studied the market, you see an opportunity, and you have an idea that could be

profitable. Great! Now it’s time to turn those thoughts into something tangible.

To convey your idea properly, you can simply draw it on a piece of paper. Maybe it will

look like a 3-year old’s artwork, but it will still convey what you’re trying to do. Some

people like putting this together in digital form, using Photoshop or Draft. Whatever you’re

most comfortable with, and whatever will give the programmers the details they need, is

the way to go.

For your viewing pleasure, here are the rudimentary drawings (a.k.a. wireframes) for my

first app, Finger Print Security Pro. As you can see, it doesn’t have to be pretty!

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And here’s how the app’s final design turned out:

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To make the design process easier, I look at certain apps in the App Store and reference

them to show my programmers what I’m looking for. For example, I’ll say, “Download the

XYZ app. I want the ABC functionality to work like theirs. Take a look at the screenshots

from this other app, and change this.” I take certain components of apps that I’d like to

emulate, and give them to the programmer so that we are as clear as possible.

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Notice any similarities? Highlight’s menu (left) emulated the style of Facebook’s menu (right).

The clearer you are, the fewer misunderstandings and problems you will have once it’s

time to hand off your drawings to a programmer. The idea is to convey what the app will

look like, where everything will be placed, and what happens if certain buttons are

selected. This helps the programmer know what you want and will be a useful blueprint

when designing your app. Do not be vague or ambiguous. You should know what every

part of your app will do. If you don’t, you need to develop your idea more thoroughly.

You have to consider your design to be final before you can begin the coding phase.

Inevitably, you will have ideas for additional features once you start testing the initial

versions of your app. But if you decide to make major changes after a substantial amount

of work has been done, it can frustrate your programmer. It’s like telling the builder who

just installed your fireplace that you want it on the other side of the living room. The news

will not go over well. Most people don’t realize this is what they are demanding of their

programmer when they ask for big changes. That’s why it’s important for you to take your

time and carefully plan every aspect of the app before you submit it for coding.

Step 4: Register as a Developer

You now have your idea drawn out. Before you go any further, you need to sign up as a

developer with the platform for which you’re looking to create apps.

Don’t be intimidated by the word “developer.” It doesn’t mean you have to be the

programmer. It’s simply the name used for somebody who publishes apps. All you have to

do is set up a “developer account” so you can offer your apps for sale in one of the app

stores.

Here are the links for each platform and a brief overview of their requirements.

Apple iOS *— Registration requirements include a fee of $99 per year and

accepting the terms of service.

Android— Registration requirements include a fee of $25 per year and

accepting the terms of service.

BlackBerry— Registration requirements include a $200 fee for every 10

apps you publish. You must have a BlackBerry World App Vendor

Agreement in place with RIM (the creator of BlackBerry) to distribute apps.

* For your first app, I strongly suggest developing for Apple iOS, rather than Android or

Blackberry. Simply put, Apple users are much more likely to spend money on apps. You

will increase your odds of making a profit simply by developing for the iOS platform.

Also, don’t forget to go over the App Store review guidelines. Apple enforces these rules

during the review process, and if you don’t follow them, your app will be rejected. For

instance, you might remember seeing a plethora of fart or flashlight apps on the App

Store awhile back. As a result, Apple has decided to no longer accept those types of

apps. Knowing these rules can save you a lot of time and effort. If you see any of your

ideas conflicting with the guidelines, reject them and move on to the next one.

Step 5: Find Prospective Programmers

Coding your own app, especially if you’re teaching yourself at the same time, will take too

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long. The likelihood of you getting stuck and giving up is very high. It will also be

unsustainable over the long run when you want to create several apps at the same time

and consistently update your existing apps. After all, the goal is to get your time back and

escape the long hours of the rat race. Therefore, programmers will be the foundation of

your business. They will allow you to create apps quickly and scale your efforts.

Hiring your first programmer will be a lengthy process. You’ll need to: post the job, filter

applicants, interview qualified candidates, have them sign your NDA, explain your idea,

then give them a micro-test… all before coding begins! But while this process takes time,

it is time well spent. Making great hires will help you avoid unnecessary delays, costs,

and frustration in the future. You’ll always be looking to add new talent to your team, so

learning how to quickly and effectively assess programmers is an important skill to

develop.

Let’s get started. The first part of this step is to post your job to a hiring site.

Top Hiring Resources

These websites allow programmers to bid on jobs that you post. As you can

imagine, the competition creates a bidding frenzy that gives you a good

chance of getting quality work at a low price.

Here are a few of my favorite outsourcing sites:

oDesk— Its work diary feature tracks the hours your programmer is working

for you and takes screenshots of the programmer’s desktop at certain time

intervals.

Freelancer— This site has the most programmers listed. They claim that

twice as many programmers will respond to your ad, and I found this to be

mostly true.

Guru and Elance. Both of these sites have huge lists of programmers.

Below is a template of a job posting, followed by an explanation for each of its

components:

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Click the image to enlarge.

Enter the skill requirements—What programming languages do they know? For iPhone

apps, the skills I list are: iPhone, Objective C, Cocoa, and C Programming.

Give a basic description of your project—Keep it simple and skill-specific. Tell the

applicants that you will discuss details during the selection process. Do NOT reveal the

specifics of your idea or marketing plan. Use general descriptions, and request info on

how many revisions (a.k.a. iterations) their quote includes.

Post your ad only for a few days—This way programmers have a sense of urgency to

quickly bid on your job.

Filter applicants—I always filter applicants using these criteria:

- They have a rating of four or five stars.

- They have at least 100 hours of work logged.

- Their English is good.

Compose individual messages to all suitable applicants, inviting them to a Skype call for

further screening. Most of these programmers will overseas, which can present issues

with communication and time zone differences. Therefore, a Skype interview is an

absolute must before you can continue. Disqualify anyone who is not willing to jump on a

Skype call.

The Interview: Essential Questions to Ask Programmers

Don’t give away any of your ideas during this initial conversation. Whenever

the topic comes up, say you’ll be more than happy to discuss everything

after they sign the NDA (if you want a copy of the NDA template I use,

see the bottom of this post). Here are the questions you should ask each

applicant before committing to anything:

- How long have you been developing apps?

- How many apps have you worked on? Can I see them?

- Do you have a website? What is it?

- Do you have references I can talk to?

- What’s your schedule like? How soon can you start?

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- What time zone do you work in? What are your hours?

- What’s frustrating for you when working with clients?

- Are you working with a team? What are their skills?

- Can you create graphics, or do you have somebody who can?

- Can I see examples of the graphics work?

- What happens if you become sick during a project?

- What if you hit a technical hurdle during the project? Do you have other

team members or a network of programmers who can help you?

- How do you ensure that you don’t compete with your clients?

- Can you provide flat-fee quotes?

- What’s your payment schedule? How do you prefer payment?

- Can you create milestones tied to payments?

- Do you publish your own apps on the App Store?

- How do you submit an app to the App Store? (Can they verbally walk you

through the process, or do they make you feel brain challenged?)

Finally, mention that you like to start things off with a few simple tests

(creating/delivering your app’s icon and a “Hello, World!” app) before coding

begins. You need to tell them this upfront so they aren’t surprised after they

have provided their quote. Most programmers are happy to get these tests

done without a charge, but some will want a small fee. In either case, be

clear with this requirement and have them include it in the quote.

During the interview, pay attention to how well they are able to explain themselves. Are

they articulate? Do they use too much techno babble? Do they speak your native

language fluently? Do they seem confident with their answers? How is their tone and

demeanor? If you have any issues or worries, you may want to move on to somebody

else. But if you can communicate with them easily and your gut is telling you “Yes,” you’ll

want to proceed to the next step.

In either case, thank them for their time and mention that you will follow up with an NDA

agreement if you decide to move forward.

Step 6: Sign NDA, Share your Idea, and Hire YourProgrammer

You must protect your ideas, source code, and any other intellectual property. These are

the assets that will build your business, so you need to have each potential programmer

sign an NDA before you hire them. Yes, it’s rare to have an idea stolen, but it does

happen (read the bottom of this post if you want a copy of the NDA that I use).

As you’re going through this process, you will be getting feedback on your programmers’

responsiveness. For instance, if it’s taking too long for them to sign the NDA, it might

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indicate how slowly the development process will move. Buyer beware!

Once the NDA has been signed by both parties, you can share your idea and designs

with your programmer. At this stage, it’s critical to ensure they have the skills to complete

your app. You do not have any wiggle room here, especially on your first app. Either they

know how to make it or they don’t. You want to hear things like, “I know exactly how to do

that” or “I’ve done similar apps, so it will not be a problem.” You don’t want to hear things

like, “I should be able to do that, but I have to research a few things” or “I’m not sure but I

can probably figure it out.” If you hear those words, switch to an app idea they are

confident about or run for the hills.

After you’ve found the best programmer for the job, you can commit to hiring them.

Establish milestones and timelines during the quoting process (break up the app into

several parts), and decide on a schedule for check-ins that you’re both comfortable with

(ask them directly how they like to be managed). You will need to periodically review their

work, from start to finish. Most applications go through multiple iterations during design

and development, and I won’t release partial payments until I’m fully satisfied with each

milestone.

Step 7: Begin Coding

Rather than jumping haphazardly into a full-fledged project, I prefer to gradually ramp up

my programmer’s workload by starting with a couple smaller tasks. You need to assess

their graphics capabilities, implementation speed, and overall work dynamic (e.g.

communication, time zone, etc.). If you’re underwhelmed with their skills, you need to get

out quickly. Remember: Hire slow, fire fast. It will pay off over the long run.

Here’s my three-step process during the coding phase:

1. Icon—Ask the programmer to create and deliver the icon of your app. You will probably

have several ideas for icons, so pass them on and ask for a finished 512 x 512 iTunes

Artwork version of the icon.

2. Hello, World!—Ask the programmer for a “Hello, World!” app. It’s a simple app that

opens up and shows a page that displays “Hello, World!”, and it will take them 10 minutes

to create. The idea here is not to test their programming skills, but to determine how they

will deliver apps to you for testing. This app should include the icon they created, so you

can see how it will look on your phone.

3. App Delivery—When the programmers are ready to show you a test version of your

app, they have to create something called an “ad hoc” (a version of your app that can be

delivered to and run on your iPhone, without the use of the App Store). This ad hoc

version of your app needs to be installed on your phone before you can test it. The initial

installation was a bit cumbersome in the past, but a new service called TestFlight has

simplified the process. I ask all programmers to use this service even if they have not

used it before. They will be able to figure it out, and you’ll be able to install your test apps

with a few touches on your phone.

The first version of your app is finished and delivered, and you’re now staring at it on your

phone/tablet. Give yourself a pat on the back — you’ve made serious progress! But don’t

get too caught up with yourself, because now it’s time to begin the testing phase.

Step 8: Test Your App

If you were having a house built, you’d want to make sure everything was in working

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order before you signed off. You would check major things like the roof and plumbing, all

the way down to minor things, like crown molding and paint. You need to do the same

thing with your app.

To start, your app must perform as expected. Pull out your initial design document and go

through every feature. Never assume that something works because it worked last time

you tested the app. Test each feature every time, especially before the final release.

Most importantly, don’t be the only tester. Your app makes sense to you, but it might not

to others. You need to get everyone you know, from your 12-year-old nephew to your

75-year-old grandmother, to test your app.

The time you spend on testing is crucial because you will see how consumers use your

product, what features are intuitive, what they don’t understand, and their patterns. They

will have questions that won’t occur to you because you designed the app and everything

about it is obvious to you.

Hand the app to them and say, “Hey check this out.” Don’t mention that it’s your app, what

it’s supposed to do, or how it works. Give as little information as possible and watch as

they try to understand and navigate through your app. This experience will be similar to

the one your real user will have, because you won’t be there to explain things to them

either.

Watch them testing your app and ask yourself these questions:

- Are they confused?

- Are they stuck?

- Are they complaining?

- Are they using the app the way you intended?

- Did they find a mistake or a bug?

- Are they having fun?

- Are they making suggestions for improvements? If yes, which ones?

Get them to talk about their experience with your app. They will be more honest if they

don’t know the app is yours. Don’t get offended if you hear something you don’t like; their

feedback is priceless. Assess each response to see if there’s a problem with your app,

then ask yourself these questions:

- Would other users have the same issues? If yes, how can I fix them?

- Should I move things around?

- Should I change colors to improve visibility?

- Would adding some instructions help?

- Should I improve navigation?

Testing and debugging will take several iterations, like the design and development

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stages. This is all part of the process. Don’t forget to use TestFlight to save lots of time

with the mechanics of installing test versions of your app.

Just remember: If you keep tweaking things and adding features, you might unnecessarily

increase costs and production time. You need to get the app on the market quickly and in

a basic form to test the concept. Only redesign during this phase if you feel you have a

good justification for it. Otherwise, add the idea to your update list and move forward with

development (I keep an update list for each app and refer back to it when the time is

right).

Step 9: Post your App to the Market

At this point, you’ve had all of your friends and family test your app, taken the best

feedback into account, and wrapped up any final changes with your programmer.

Congratulations – it’s time for you to send the app to the App Store for review!

It’s a good idea to have your programmers show you how to submit your first few apps.

Do not give out your developer account login information to your programmer or anybody

else. The best way to have them show you how to submit your app, without having to

giveaway your login, is to do a screen-share over Skype or GoToMeeting and have them

walk you through the process. As your business grows, you might want to delegate this

task to someone on your team.

Below is a screencast on how to upload an app to the App Store. As you’ll see, it’s a fairly

confusing and tedious process. Best to leave this task to your programmers:

The amount of time Apple will take to review and approve/reject your app will depend on

whether you’re submitting on behalf of yourself or a company. If you’re an individual, it will

usually take 3-7 days. If you’re a company, it will likely take 7-10 days.

The real fun begins once your app is approved and available for download…

Step 10: Marketing Your App

The App Store is filled with thousands of great apps, but most developers are not skilled

when it comes to marketing. Meanwhile, many poorly designed apps rank highly because

their developers have figured out the marketing game. How do they do it?

You really need to focus on a few key areas to effectively market your apps, which will

allow customers to discover and download them. Understanding how an app’s basic

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elements are marketing opportunities is essential to being successful in the app business.

Your job is to create a seamless flow from the icon all the way to the download button.

Let’s take a closer look at these components, which you can adjust at any time from your

developer account:

ICON

The first thing users will see when they are checking out your app is the

icon — the small square image with the rounded corners to the left of the

app title. It’s also the image that users will see on their phone after they

install your app.

The icon is important because it’s how the users will identify your app. It

needs to look sharp, capture the app’s essence, attract the users’ attention,

and compel them to investigate your app further.

Great app icons are clear, beautiful, and memorable.

Many developers create icons as an afterthought and focus all of their effort

on the app itself, but the icon is the first impression you will make on the

users. The old expression “You don’t get a second chance to make a first

impression” applies here. Make sure you have a quality icon that represents

your app and makes the users believe it has value.

APP TITLE

Over 80 percent of searches in the App Store are related to an app’s

functionality, rather than an app’s name. Therefore, it is critical that you help

users find your app when they perform relevant keyword searches in the

app store.

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Source: Chomp.com

Each word in your app’s title serves as a keyword, much like keywords in

search engines. You can think of the title as your URL. For instance, if you

type “angry” into the App Store search field, the Angry Birds apps will return

as a search result.

DESCRIPTIONS

Having a compelling description for your app is like having a great opening

line — people are more willing to learn about you once you’ve piqued their

interest. The first chunk of your app’s description needs to be packed with

the most relevant information customers should know.

If applicable, use statements like “Top App 2012” or “One of the Most

Addictive Games in the App Store.” Follow it up with a call-to-action, such

as, “Check out the screenshots and see for yourself.”

SCREENSHOTS

Screenshots are great marketing tools because they give users a visual of

what they will experience. Think of them as the trailer for your app. Here are

a couple examples of effective screenshots:

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Nike+ GPS screenshots.

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Free Music Download Pro screenshots. Note the use of captions to explain the app’s

features.

Many people shopping for apps won’t read the description, but will instead

scroll down to the screenshots. The screenshots need to convey the main

functionality of the app without showing too many details that may confuse

users. If your screenshots are cluttered, it will be as ineffective as a realtor

trying to sell a house with messy rooms. The brain gets overwhelmed and

buyers have more trouble seeing the product’s true value. Therefore, the

screenshots you include should be clean, appealing, and informative.

KEYWORDS

Unlike your icon and title, keywords are not something the users get to see.

When you submit your app to the App Store, you’re allowed to provide

keywords relevant to your app. When users search for one of the terms you

entered, your app appears in the search results.

For example, if you type in the word “kids” or “game” on the App Store, you

will find that Angry Birds is one of the search results. The terms “kids” and

“game” are not in the app title. The makers of Angry Birds most likely chose

those keywords to associate with their app.

A good example of effective keyword usage is an app I created called

Flashlight. Since the name is Flashlight, we came up with keywords, such

as “bright,” “help,” “light,” and “camping.”

One time, I added the term “phone” to the keywords of my free prank

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fingerprint app. This seemingly minor change propelled the app to the

number one top overall free category, which moved the company’s income

from $1,000 per day to $3,000 per day. This is the power of refining the

marketing components for your app. Simple changes can dramatically

increase your revenue.

CATEGORIES

The App Store organizes apps into specific categories to help users find

them more easily. In addition to the top overall rankings of all apps, each

category has its own top rankings and, therefore, generates a certain

amount of visibility based on these charts. Users looking for certain apps

often browse through these category charts without looking at the top

overall charts. For instance, an app that doesn’t show up in the top 200

overall might still be in the top 10 of a particular category.

When you’re submitting your app for review, make sure to select the most

relevant category for your app. On the other hand, many apps can be

classified into more than one category. You have to choose one, but you

can always change the category during an update.

One of my apps, Alarm Security, wasn’t performing well, and I was trying to

bring it back up in the rankings. I initially tried changing the name and

keywords, but it didn’t move much. The one thing I hadn’t tried was

switching it out of the Entertainment category. The app contained various

alarm sounds (like loud screams and gunshots), so I assumed users would

use it more as a goof than as a tool. I was wrong.

Once I moved the app into the Utilities category, the number of downloads

skyrocketed. After five days, the paid downloads had tripled, and it was only

because of a category change.

Just as your app will always need certain refinements due to consumer demand and

competition, so will your marketing. For most of my apps, I have changed the icon and

screenshots three to five times and the title and description between 5 and 10 times. I

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change keywords almost every time I update apps. I always switch the categories when it

makes sense. Keep an open mind and continue to be inspired by your observations

during your market research.

Finally, there’s a simple rule of thumb I follow for making changes: Tweak once per week,

then measure. You have to allow ample time to see the effect of any changes you make.

Measure your results, then make adjustments based on your data in the following week.

Your goal is to increase traffic and revenue, all while improving your users’ experience

with the app.

Bonus Marketing Tactics

FREE APPS

After you’ve taken care of the basics, your best marketing tool will be

offering a free version of your app. It will generate traffic and visibility that

you otherwise wouldn’t get.

Free apps create the most traffic because they have the smallest barrier to

entry. It takes five seconds to download, and it’s free. Why wouldn’t you

push the button? Once the free version of your app gains some traction,

you can use it to advertise the paid version of the same app. This is like

getting those free food samples at the supermarket. If you like the sample

you tasted, you might buy the whole bag and become a long-term

customer.

NAG SCREENS

Nag screens (pop-ups that remind users to check out the paid version of

the app) have been the most critical marketing tactic for my business. You

might worry about annoying users with these ads, and that is a valid

concern, but you need to think of nag screens as adding value for your

users. If they downloaded your free app and they are using it, a percentage

of your users will be interested in buying the paid version of your app. For

those who don’t, a quick pop-up message is a small price to pay for using

the free version.

You have to accept this and not shy away from this type of marketing. If

you’re still on the fence, consider this: When Apple launched its iBooks app,

it used a nag screen within the App Store app. If you had an iPhone at the

time, you may remember seeing that pop-up inviting you to download

iBooks. Well, you were nagged by the one and only Apple.

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Basic nag screen (left) vs. Advanced nag screen (right). Advanced nag screens typically

have three times higher click-thru rates.

When adding a nag screen, explain to your developer what you are looking

for, and reference specific examples of other apps that have nag screens.

Be sure you can change the nag screen without submitting a new update to

the app store. To do this, tell the developer you want your nag screen to be

dynamic. This will allow you to change your marketing message redirect

your app’s traffic within seconds. This is an absolute must. Your nag

screens will lose a huge part of their effectiveness if you cannot change

them on the fly.

How do you assess the effectiveness of your nag screen? All you have to

do is keep track of how many times you show a particular nag screen and

how many users click “Yes” to check out the app(s) you’re promoting. This

is called your click-through rate, and the higher the percentage, the better.

Final Thoughts

This is the first time in history when so many of us have the tools and access to

knowledge that can quickly lift us out of the rat race. Your background, gender, race,

education, and situation are irrelevant. All you need is the desire and a game plan.

You don’t have to wait till “someday” to fulfill your dreams. You can start right now…

Contest and Bonuses

We’re throwing a contest for any readers who are ready to dive into the app world.

Whoever comes up with the best idea for an iPhone app (as decided by me and my team)

will have 100% of their development costs covered. That’s right: You won’t need to spend

anything to have your app made – all it will cost is your time and effort. This will be a great

learning experience for the winner, so if money is all that’s holding you back, we want to

help you get started.

Here are the details:

- You have 1-week (ending Monday, April 30, 2012 at 9am EST) to research

and design your app idea. Your app should try to fill a void in the market or

improve upon apps that are currently available.

- Once you’ve decided upon your idea, post a comment below with a

detailed explanation of the app you want to develop. Bonus points if you

can show us (with a drawing, video, etc.) how your app will function. More

bonus points if you show us the research you did to prove your app’s

potential for success.

- You can only submit one (1) idea (one entry per person), so make it good!

- Up to $5,000 USD of your development costs will be covered. 100% of all

revenues earned will go to the winner.

- Winner gets a 1-hour phone call with me (Chad) at any point during

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development or marketing.

For those who are worried that someone is going to steal your idea and make a million

dollars with it– you don’t have to enter the contest! Just remember: my success in the app

store came from emulating successful apps. In other words, borrowing proven ideas and

trying to make them better. If someone else can succeed by taking one of my ideas and

improving upon it, that’s only fair game. Don’t let the fear of losing prevent you from trying

to win.

Contest deadline has passed; Winner (Alex K.) has beencontacted. Thanks, all!

Finally, for those who’d like a copy of my NDA template (along with the checklist I use

when hiring a new coder), email a copy of your receipt for App Empire, my

comprehensive book on app development and marketing, to bonus (at) appempire.com.

The book goes into depth on advanced marketing and monetization techniques, including

how to put your business on cruise control (automate).

We look forward to seeing what you guys come up with! Talk to you in the comments

Posted on April 22nd, 2012

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