It's certainly possible to make a living on the App Store, but you can't depend on a megahit like Angry Birds or Tiny Wings.<p>My theory is that you'll need probably a dozen or so apps in the $1.99 - $4.99 range. The $0.99 point has too many psychological problems in terms of perceived value and competition to be worth it IMO. Ads also aren't a viable source of steady revenue for any non-Top 100 apps.<p>Each of my (paid) apps get downloaded around 10 times a day (and trust me, I have some pretty obscure apps [1]), so this theory is based on 10 apps * 10 downloads/day * $2.99 avg price * .7 Apple Tax = $210/day = $75k a year. That's not quite Google money, but it's all <i>you</i>, which (for me) makes up for the other $40k.<p>So there you have it: have a dozen moderate, long-tail successes to make good money on the App Store. And with what, 80 million? iOS devices in the wild, how hard is 10 downloads per day? (easier said then done, right? ;))<p>Other tips:<p>- MOST IMPORTANT: be well-designed. App Store buyers love that (take a look at Dylan's app, it's <i>very</i> pretty).<p>- If you can't design, then try stick with Apple's default look. It might not be unique, but it definitely won't be ugly.<p>- Have a reusable app design. It's so convenient to be able to write the core app once and just swap out data sources for each new app.<p>- Build apps fast and be agile; don't focus on one app for months on end without launching. MVP and get real-world feedback.<p>- Make it clear that your users can get in touch with you via email or Twitter. And then respond to them!<p>- Update often!<p>- Try Lite versions of your apps with In-App upgrades.<p>Full disclosure: this is what I'm trying to do :)<p>[1]: <a href="http://itunes.apple.com/us/app/brocabulary-new-and-improved/id320767043?mt=8&ls=1" rel="nofollow">http://itunes.apple.com/us/app/brocabulary-new-and-improved/...</a>
I've made 100K in the app store during my first 8 months. I agree that diversification is key. Don't go for a homerun, go for multiple singles. This is my strategy and has worked well so far:<p>1. Always release a free ad-supported version of the app. Advertising revenue has a much better "long tail" than paid apps. There is ~ 5% conversion rate, so your paid apps do better also.<p>2. Target a specific niche. There is far less competition and you can charge more money. My main apps go for $5 on iPhone and $8 on iPad. If you try to release a "Angry Birds" killer for 0.99c, you are seriously rolling the dice.<p>3. Re-use the same code base to make multiple apps. This should be done with caution, as there is a fine line between making the most from your work and spamming the app store (which can get you banned). Almost all of my apps share a common code base. This is a sure way to increase discoverability.<p>Anyway, that's been my experience. As full disclosure I HAVE been featured by Apple and reached the Top 60 top grossing on the app store, so my earnings are a bit distorted by that spike. But even in my lowest month, I have never dipped below $7500.
I hate to be a nit picker on what is otherwise such a good post, but I have to pick a nit with this point:<p>> But no one else has ever enabled an independent developer like myself to connect with so many potential customers<p>The internet enabled that 10 or 15 years ago and there are countless individual devs who've created successful software products and whole businesses by selling direct. Even better, these people aren't bound to anybody's corporate teat the way iOS developers are to Apple. Apple certainly created a useful new market segment for the individual developer to address but I find this hubris about it pretty sickening sometimes.
This is really great information. Having seen similar charts many times in the past the question then seems to be, how does a developer for iOS or Android go about getting visibility for their apps? Clearly the visibility as a new app is pretty good, but it tails off fast and it doesn't seem that current methods are providing the visibility necessary for sustainment and/or growth. Outside of the obvious (a traditional marketing campaign, which is expensive) what kind of methods are available?
Great article. One maybe naive question since I have no mobile app development experience: it seems that many apps experienced a spike in downloads when they were first launched; but the downloads tapered off in the long run. It is quite the opposite of websites where the traffic start to build up only after a period of time.<p>Could this have something to do with the lack of app search engines/recommendation engines to direct users to niche apps? Or is it due to the fact that mobile users only care about the latest (and presumably best) apps out there, hence the shorter life cycle of mobile apps? Thanks.
An interesting thought for the original writer (Dylan Ginsburg):<p>Not only will you get the benefits of each new app, but as you build a library of apps, you'll get the long-tail benefits of each, significantly raising your income along the way.
I've posted a follow up to the original article.<p><a href="http://blog.riverofnewsapp.com/2011/03/update-how-much-money-can-you-make-on.html" rel="nofollow">http://blog.riverofnewsapp.com/2011/03/update-how-much-money...</a>