Experiences Developing An Android App For Money

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Re: Experiences Developing An Android App For Money

Postby blundell » Thu Aug 19, 2010 3:09 pm

So your saying, the Market remembers the date you where in the Just in category and you won't be in it again until 7 days, when the date will reset.
i.e. if you release updates in between these two dates they will not appear in just in, AND they won't affect your weekly 'Just In' schedule
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Re: Experiences Developing An Android App For Money

Postby diastro » Thu Oct 07, 2010 3:20 pm

midasmax wrote:stoneknuckle
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?
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Re: Experiences Developing An Android App For Money

Postby truello » Thu Oct 07, 2010 6:48 pm

Thanks for posting about your experience. Always very useful to hear about others experiences and their lessons learned. I feel like I'm in a similar situation so it's even more useful. I don't need to make an income off of Android development, but if I enjoy it and it makes me an extra bit of money a month then great.

I was really planning on letting advertising do the heavy lifting but after reading your post I am reconsidering it. Maybe I will go for the "free / pro" versions, and basically have the free version advertise for the pro version.

I also find your thoughts about developing 5 small apps that make 1/5 the money each versus 1 big app intriguing. It's something I hadn't considered and definitely seems plausible. However, since I am doing this for fun I think I would rather work hard on something I'm very passionate about than release 5 separate apps that I'm 1/5 as passionate about...

Thanks again for the post.
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