If you are a developer and think “Hey! I have this great idea for a mobile app! I’ll make millions with it!” you are delusional.
Let me explain why and what can be done to be actually able to make money and start a business.
Lets begin with the some reality. The mobile application space is crowded. Really crowded. Apple’s AppStore has over 400’000 apps and Android Marketplace has over 200’000. You could say that that means nothing, but it actually does. Crowded app stores mean that it’s harder to stumble upon your particular app.
The early entrants to the market are there at the top and are not going to be unseated any time soon. The games and tools in the tops are established and got their income streams set up.
Innovative ideas could come out and take the stores by storm, but let’s be realistic here. Most implementations of innovative ideas take years to mature. Just look at the history.
Point #1: Mobile app market is an established market
Yes. As hard as sounds, mobile app market is already an established market since 2010. So all ventures in that market will require either opening a market segment or stealing market share from someone else. Both options are not easy.
Point #2: It’s almost impossible getting noticed.
Getting noticed is priority #1 for a new developer. It does not matter if your app is free or costs money. If you are not noticed your app will not be in demand. Top sellers are dominated by established players and featured items does not always result in jump in profits. In fact, being in the top sellers and being featured is not a guarantee success.
Point #4: App sales are no longer an option
Yes, you read it right. Sale of an application is no longer an viable option as a business plan. It’s just not possible to make enough sales to cover the development costs of even a small team. In short, one man team can make enough but not start a company with full time employees.
With all of that bleak outlook above, there are options of making it in the mobile apps arena.
Custom app development shops are making good income these days. As always existing businesses are looking to get their apps onto the mobile platform and that is a growth area at the moment.
Create a service and add a mobile component based on that service. If you develop a standalone app, then you will fail because you’ll be copied by enthusiasts that have a day job. A service component will make sure that the users will not migrate to something else.
As for developing a single good and innovative app, there still is a way.
Here are the options:
I know of quite a few mobile app startups that have failed miserably during the last year. Some of them even had featured and top apps in the app stores. All that survived are either still looking for marketing agreements with operators/carriers or ended up developing custom applications for established businesses.
Let me explain why and what can be done to be actually able to make money and start a business.
Lets begin with the some reality. The mobile application space is crowded. Really crowded. Apple’s AppStore has over 400’000 apps and Android Marketplace has over 200’000. You could say that that means nothing, but it actually does. Crowded app stores mean that it’s harder to stumble upon your particular app.
The early entrants to the market are there at the top and are not going to be unseated any time soon. The games and tools in the tops are established and got their income streams set up.
Innovative ideas could come out and take the stores by storm, but let’s be realistic here. Most implementations of innovative ideas take years to mature. Just look at the history.
Point #1: Mobile app market is an established market
Yes. As hard as sounds, mobile app market is already an established market since 2010. So all ventures in that market will require either opening a market segment or stealing market share from someone else. Both options are not easy.
Point #2: It’s almost impossible getting noticed.
Getting noticed is priority #1 for a new developer. It does not matter if your app is free or costs money. If you are not noticed your app will not be in demand. Top sellers are dominated by established players and featured items does not always result in jump in profits. In fact, being in the top sellers and being featured is not a guarantee success.
Point #4: App sales are no longer an option
Yes, you read it right. Sale of an application is no longer an viable option as a business plan. It’s just not possible to make enough sales to cover the development costs of even a small team. In short, one man team can make enough but not start a company with full time employees.
With all of that bleak outlook above, there are options of making it in the mobile apps arena.
Custom app development shops are making good income these days. As always existing businesses are looking to get their apps onto the mobile platform and that is a growth area at the moment.
Create a service and add a mobile component based on that service. If you develop a standalone app, then you will fail because you’ll be copied by enthusiasts that have a day job. A service component will make sure that the users will not migrate to something else.
As for developing a single good and innovative app, there still is a way.
Here are the options:
- Spend a lot of money on a marketing campaign. Minimal campaign would cost $5000.
- A truly innovative idea with a hook.
- Excellent mobile app (a creative designer is mandatory)
- Making a deal with carriers/operators/ODMs
I know of quite a few mobile app startups that have failed miserably during the last year. Some of them even had featured and top apps in the app stores. All that survived are either still looking for marketing agreements with operators/carriers or ended up developing custom applications for established businesses.
You need to see this: http://goo.gl/COmwz (that part about iTunes) :)
ReplyDeleteBy the way, where's a rss feed on your blog dude?