How to beat 2/3rds of app competitors
Our mission here at Developer Economics is to help developers create a better app business. A recent survey from App Promo highlights the pain points once again, and offers some hints about the solution.
Let’s start with the bad news…
4 out of 5 developers admit that their app doesn’t make enough money to be considered a standalone business. 2 out of 3 doesn’t break even. This confirms our results from the Developer Economics 2013 report, where 67% of developers who want to earn money live under the App Poverty line (revenues of less than $500 per month).
Despite these disconcerting numbers, and despite developers indicating discovery, making money and turning the app into a business as the main challenges, most developers undervalue the importance of marketing their applications. According to the App Promo survey, 2 out of 3 developers don’t have a marketing budget, and a quarter of developers doesn’t market their app at all.
And yet there is hope. A full 81% of developers said that they would not abandon their app. App Promo found that the survivors (experienced developers with apps that are over 3 years in the market) have succeeded in creating an interesting app business. They report revenues earned to date of over half a million, 100% of them breaks even and 78% considers their app successful enough for a standalone business. And yes, they do market their apps: over half of the respondents in this group has marketing budgets of over $1000 per month.
App Promo’s results also include differences between platforms, the use of various revenue models and marketing techniques, and more. The full results can be downloaded here.