Thanks once again for the advice!
Yes, this thread is full of great info!
Looks like most developers are using AdMob to earn some money off their free apps. Did anyone tried buying ads from Admob to promote paid apps? is it possible at all?
If a click cost lets say $0.10, and 20 (5%) clicks leads to a sale of a paid app then the ad cost would be $2.
To break even, you need to sell the app for about $2.9 because the market takes 30%.
$0.10 * 20 = $2.90 - $2.90 * 30%
So if you want to make any money, the app should cost at least more than $2.90 in this scenario.
And it is not all: we have to pay some taxes based off $2. The tax rate could be very different, lets be very optimistic and assume tax rate is 20%. Now the break even price is even higher:
$0.10 * 20 = ($3.60 - $3.60 * 30%) *80%
I might be a bit wrong on some numbers, but this simple analysis leads me to believe you cannot make any money on paid apps if you advertise and the app price is below about $3.60.
Next conclusion is.. looks like very few developers can do it, since most apps cost < $3.60.
Here is some data, average app price is about $3.27 for Android:http://theappencypress.com/2010/08/04/e ... pp-seller/http://techcrunch.com/2009/08/06/androi ... tionaries/
Has anyone tried buying ads from Admob? Does it work at all?