Earning millions of dollars on an iPhone app sounds appealing, but then, most of them will walk away with little or nothing to show for it. Therefore, before you jump to iPhone application development, isn’t it good to think ahead and make some estimations as in what would be the reasonable return on investment once the app is released?
What’s the Gain when investing into iPhone App Development?
Let’s start with calculating the revenue. There is a formula to calculate your revenue: number of downloads * monetization coefficient.
For example, take the monetization coefficient, which is how much money one installation brings.
- In general, a free app is downloaded 15-20 times more often than a paid one.
- For paid apps with no in-app purchases it’s simply “The Price” minus Apple’s 30%- despite the fact that paid app will not necessarily bring you more money.
What’s The Probability of an App Download?
The probability that your app will be downloaded depends on the following
- Make it to App Store Charts: An iPhone app developer’s team in USA suggest an app should make 13,000 download daily to be in Top 100 Free Apps. So, will your app make it to App Store Charts, whether it’s Top Apps Paid, Free or category section?
- To Beat the Competitors: Based on a report released recently, it is found that the most competitive categories in Dec 2013 were Games (5,617 new apps) followed by Education (1,168 apps) and lastly Business (3,091). Meanwhile, the number of new apps in other categories varies from approximately 3,000-1,000 (Travel, Lifestyle, Utilities, Sports, Health) to 900-800 (Music, Food, Photography).
What If My Apps Fail? Don’t abandon them?
Sometimes, post the mobile application development, and release you might want to develop something quite different but leaving a half-baked app behind. Never do this as it might affect your company’s reputation. Instead, be passionate about any app of yours and continue to maintain it in the long run, thus building trust and strong customer relationship.