For your convenience Apress has placed some of the front

matter material after the index. Please use the Bookmarks

and Contents at a Glance links to access them.

Contents at a
Glance
About the Author .............................................................................. xi
Introduction .................................................................................... xiii
Chapter 1: Staring at the Bottom and Rising to the Top ................. 1
Chapter 2: Choosing the Right Development Option ....................... 7
Chapter 3: Dont Compete in a Market, Create It .......................... 19
Chapter 4: Generating Revenue from Various Business Models ..... 27
Chapter 5: Managing Users Today for Success Tomorrow ........... 31
Chapter 6: Whats Hot and Whats Not .......................................... 37
Chapter 7: Making the Most of Your Advertising Money .............. 41
Chapter 8: Plan to Scale, or Your App Will Fail ............................. 49
Chapter 9: The Life Cycles of Apps ............................................... 55
Chapter 10: Selling the Rights and Cashing Out ........................... 59

vi

Contents at a Glance

Chapter 11: Keeping Piracy to a Minimum ................................... 65

Chapter 12: Evolving with the App Store ...................................... 67
Index ................................................................................................ 71

Introduction
You are interested in making an app. You have read all the stories of successful
developers and appreneurs. You are determined to get a piece of the pie.
Welcome to the app era. The world of apps is the fastest-growing market in
the world today, and it is here to stay. The best part is, you can get in on it!
Now, what if I told you that without the information provided in this book, the
odds of your making a profit would be slim to none? What if I also told you
that you probably wouldnt break even? There is more to apps than you might
think. Most people assume that if they make an app, they will instantly become
a millionaire. The truth is, without the knowledge garnered from years of
successes and failures, you simply wont know where to begin.
This book contains tips, tricks, secrets, and stories from top developers,
appreneurs, and companies from around the globe. The experiences
presented here are those of real-life professionals, ranging from single-team
developers to the big boys in the Fortune 500. After reading this book, you
will be equipped to bring your idea to life, market it, promote it, and sell it.
You will know exactly what to do to make sure your app stands out from
among the more than one million apps available. Before now, a book that
revealed the secrets of success in the App Store was nonexistent. With this
book, you have the wisdom of some of the best appreneurs in the country
right in the palm of your hand.

xiii

Chapter

Staring at the Bottom

and Rising to the Top
The year was 2009; I was just finishing my freshman year at the University
of Texas at Austin. I sat in my room, proud of my year. I had decided to pay
for my own college education in order to take the burden off of my parents
shoulders. I took a look at my banking information and nearly had a heart
attack. I had less than $100 in my account and a loan of nearly $25,000
staring me right in the face. Keep in mind that this was only my first year of
college. At the rate at which college tuition was increasing, I was sure to be
six figures in debt by the time I graduated. I thought to myself, I may have
bitten off a little more than I can chew.
Mentally exhausted by the financial pit I was digging, I decided to play video
games with some of my friends to relieve the stress. What happened
next changed my life. One of my gaming friends turned to me and said,
How cool would be if you could track your in-game stats via an app?
The basic idea was to know how well you were doing without having to log
in to your computer after each game. I literally sat the controller down and
opened up my laptop. I was majoring in computer science at the time, and
I remembered seeing news of developers who were creating applications
(apps) and making a considerable sum doing it. My friends random
comment motivated me to immerse myself into the world of development
possibilities. That summer, I spent almost every waking moment learning
Objective-C and the iPhone software development kit (SDK). In the fall I
released my first app. It was an interactive guide for one of my favorite
video games, Halo 3. The app was an overnight sensation. It began to
receive tons of recognition in the gaming world. I was getting e-mails from
professional players who were using my app at events. I had companies
blowing up my e-mail, wishing to advertise in the app. Although I was
1

CHAPTER 1: Staring at the Bottom and Rising to the Top

ecstatic with my success, I wasted no time before moving on to my next

project. I knew that I had only scratched the surface of the app market.
By 2010 I was earning enough money from my app to reduce my student
loan by half. Finally, I could enjoy my college career; I was even able to
upgrade from my student diet of ramen noodles. I was by no means a
millionaire, but I had found the App Store gold mine, and I was virtually
mining away!
For my next venture I began to create different types of apps for many
specialized niches. As I tracked the progress of my new apps, I noticed that
the apps I made for hobbies that I lacked personal interest in didnt do as
well as I had anticipated. It was then that I learned the most important thing
about the App Store: if you are passionate about something and know a lot
about it, then you can create a high-quality app for it that users will enjoy.
By 2012 being an App Store expert was my career. I was financially secure
and living my dream. I opened a studio called the Idea 2 App Store
(www.idea2appstore.com) because I wanted to create a way for people with
no development skills to be able to sell apps and make money. If I could
go from living in a 400-square-foot apartment and driving the same truck
I had owned since I was 16 to living in my dream home and driving my
dream car, I figured anyone could. I wanted to provide other people with the
opportunity to make their dreams come true.
Unfortunately, my dream assumption was incorrect. I had forgotten how
much I had learned in those three years. I had acquired a great deal of
wisdom from my successes and failures. I decided to branch out and add
consulting to the studios list of services. Before too long, many major
companies and other lucrative clients were seeking my counsel. During a
three- to four-hour consulting session, I could take a client without even
a basic idea of how the App Store works and mold that person into a pro.
Such clients were able to take the skills I taught them and the secrets I
shared with them and integrate these into their apps. It made me feel good
getting phone calls from them a few months later, explaining how well they
were doing. That feeling of helping others achieve dreams motivated me
to share the information I use when consulting with clients with a wider
audience and create the book you are about to read.
Some of you might be reluctant to believe that my success can be your
success. You might even be thinking, I am not a computer programmer.
How can I create apps? The answer is surprisingly simple. The swift advent
of technological advancements in our society has created a surge in the
number of quality developers available. No matter your location, you can
find a developer or studio that fits your needs and budget.
Without a doubt, creating apps can be expensive; expect to spend between
$50 and $150 an hour for quality app development. If hiring a developer is

CHAPTER 1: Staring at the Bottom and Rising to the Top

your only option, consider this plan: start small, and expand. Most people
do not understand that apps are software and that quality apps will take
time. There is no way of accurately predicting what your app will make prior
to checking your sales once the app is live in the App Store. Some apps
blow up immediately, generating huge profits; some apps tank, without any
profit. Such is the nature of the App Store. If you keep your first app small in
the terms of price and time, you will reduce your chances of loss. If the app
begins to generate steady revenue, then you can add features and update
the app. This is the ideal business model for one reason: users love updates.
I cannot stress this enough. There have been apps I have made and have
almost given up on; however, after an update with a few extra features,
these apps sprang back to life. Quality apps are never complete. If you think
your app is done, then you will soon begin to see its sales drop.
So, you have an idea. Whats next? First and foremost, do your research.
Check the App Store and see who, if anyone, has made something similar.
If you find something that resembles your idea, you need to do three things
to compete: download, dissect, and do it better. Do not think, just because
there is an app out there like yours, that your idea is a bust. Sometimes,
it can be the just the opposite. The first thing you need to do is download
the competitors app. Dissect it; find out what is good and what could have
been done better. Next, read each one of the apps reviews. This is a secret
that not many developers/appreneurs know. You have access to crucial
customer feedback. Focus on the negative reviews. Ask yourself, Is this a
valid point? Is this something I can do, and do better? Finally, if applicable,
search for the apps ranking. If you can find ranking data, you can get a
general idea of the amount of revenue the app is producing. This is another
secret many appreneurs do now know.
Another common misconception about app creation is that you have to be
a technology genius in order to create a profitable app. On the contrary,
a fellow appreneur, Benny Hsu, had his app 100 percent outsourced and
still turned a profit, and a hefty one at that. His app, Photo 365, is very well
done. Although you dont often read about developers making money from
outsourcing apps, Bennys story exemplifies how success is possible if you
know the market. I asked Benny to share his experiences so that you could
see that app success is not only for the computer literate. Here is Benny
Hsus story:

A long time ago, I wanted to create an iPhone app. As a user

and fan of the iPhone since the first version, I had two reasons
to create an iPhone app. First, I thought it would be cool to
be able to say, Here is my iPhone app. Second, I wanted to
start a business on the side. I wanted to become my own boss
and stop working for someone else.

CHAPTER 1: Staring at the Bottom and Rising to the Top

My only problem was that I had no idea how to code! I thought

that was the only way to create an app. One night, I was on
the Internet and just happened to come across a blog about
creating income online. This blogger had an iPhone app
company, with a partner, that was earning thousands a month.
The blogger didnt know how to code, either. He outsourced
all the work. At that time, I knew about outsourcing but
didnt know the possibilities. He recommended an e-book
to learn about outsourcing app development. Thats exactly
what I needed. I bought that book and another small e-book.
Developers who were able to create a business from apps
wrote both books, much like what you are reading now, all
without any coding experience.
I didnt let thoughts of failure stop me. I was determined
to learn all I could and do the best I could. The app was
supposed to take one-and-a-half months, but it ended up
taking approximately seven months. The delay didnt frustrate
me. I was really pleased with the prototypes my programmers
were sending to me. I didnt want to rush things just to get it
out. I wanted the app to be done well.
The app was released on August 10, 2011. At that time, I
would have been happy just to make my investment back. It
cost me $1,119.46 to develop Photo 365. That was a lot of
money to me, but an amount I was willing to risk. Little did I
know what was about to happen to my app.
Within the first seven days, I had earned back my $1,119.46.
This completely blew my mind. This was beyond my wildest
dreams. Things only got better. The following week, I saw
Photo 365 featured under New and Noteworthy. (New and
Noteworthy is a category of apps selected by Apple. If your
app is featured in this category, you are going to see a large
influx of sales.) Not only did the app get featured, but it was
in the second spot as well. I was still enjoying the feelingof
accomplishment when, six days later, I got an e-mail from
Apples marketing department, requesting art assets. I read
the e-mail many times just to be clear about what Apple
wanted. I had a feeling what this was for but didnt want to get
overly excited yet. There was a lot of work to do to meet the

CHAPTER 1: Staring at the Bottom and Rising to the Top

24-hour deadline. Luckily, my brother is a Photoshop wizard

and helped create the art assets needed. The contact person
was really helpful in answering all my questions quickly. The
next morning, I sent off the e-mail and waited.
That same week, I was working at my restaurant job. During
a break I decided to check my apps progress. I knew that
Apple updated the App Store in the afternoon, but I didnt
know exactly when, so I was not expecting much of a change.
I logged in to a forum and saw a private message telling me,
Congrats. What? I quickly went to the App Store and saw
Photo 365 featured as App of the Week! I jumped and
screamed like I had hit the lottery. My heart was racing. I went
to Facebook and Twitter and shared my excitement. That
whole night at work I couldnt stand still. It was a moment
that Ill never forget. The sales that week were phenomenal.
I couldnt sleep because I couldnt wait to get up in the morning
to check sales. I felt like a kid waking up early on Christmas
Day. I had become App of the Week in just my third week.
Even as I type this, I find it hard to believe it happened to me.
After the first 30 days, I had earned $32,865.91. Not only did I
make my investment back, but I was able to start my own app
company as well. How quickly life can change in just 30 days.
You might be wondering how I marketed my app. You might
assume that I spent a lot of money. Ill be honest with you,
and it may surprise you. I didnt do any marketing. I didnt
spend a single penny. I had some review blogs contact me
that first week to ask for a promotion code to do a review.
I was just happy anyone wanted to review the app, so I always
said yes. The biggest web site to do a review at the time was
AppAdvice. The same day that I got the e-mail from Apples
marketing department, a review appeared on Gizmodo.
I hadnt been contacted by this site. That was a great surprise.
Im proof that you dont need to have a huge marketing budget
to create an app that gets seen by users and Apple. If you
create a polished app that your target customers love, they
will find it, and they will tell others about it.

CHAPTER 1: Staring at the Bottom and Rising to the Top

I would counsel anyone who wants to develop an iPhone

app through outsourcing that its not as hard as you think. At
the beginning, it might seem overwhelming because youre
unfamiliar with the process. But, if you dont take a chance
now, when will you? If I hadnt risked failure, I would have
never experienced the success I did.
If you wish to download one of Bennys apps or check out his blog, the
details are as follows:
Photo 365: http://photo365app.com
Gratitude 365: http://gratitude365app.com
Get Busy Living: http://getbusylivingblog.com
Benny Hsus inspirational story represents all that can go right when you
make smart development choices.
The next chapter outlines how to effectively develop your app to maximize
results.

Chapter

Choosing the Right

Development Option
I contacted Benny to share his story because it is both inspirational and
relevant to this book. Also, I wanted to prove the power of both developing
and outsourcing quality apps. He found a good target market, created
an app that market would enjoy, managed his users, and, consequently,
achieved great success. To see for yourself what a professional-quality
outsourced app looks like, be sure to download Photo 365.

Developing Quality Apps

When it comes to app development, you have two basic options: developing
the app yourself or outsourcing the development. There are pros and cons to
both options. If you are a tech-savvy programmer with some experience, then
learning the language and SDK is a great idea and probably will not give you
much trouble. You will certainly have lower overhead costs and thus a greater
profit margin if you can develop the app yourself. However, the downside is
that learning the SDK takes time, sometimes more than you can spare.
For example, just learning the basics of the SDK took me approximately five
months, even with a good background in programming. The SDK is always
expanding; I have been doing this for four years, and I still learn new things
every day. While you are learning the SDK, someone could be developing
your idea! I am not saying that developing your own idea is always a race
against competitors, but it is possible that while you are preparing, another
developer may cross the finish line with a similar concept. Therefore,
I suggest that if you have an idea for the next big app, or an idea that is very
time sensitive, then by all means, have a studio or developer create the app.
7

CHAPTER 2: Choosing the Right Development Option

Having a developer create the app comes with its share of responsibilities and
potential issues as well. FMost important, have anyone you are discussing
an idea with sign a nondisclosure agreement (NDA). This document will
protect your idea and your intellectual property. Recently, a client came to the
studio with an idea for an app that I thought was very original. He came to us
because we offer a unique service whereby we develop a clients app free of
charge if the idea is something we really like; in turn, the client receives a cut
of the profits. This is a good way for people with great ideas and a low budget
to have apps developed. In this particular case, we were a bit busy and were
not going to be able to start on the app for at least another month. The client
decided he couldnt wait and went to another studio. A few months later,
I noticed that his app was in the App Store. I e-mailed him my congratulations.
He didnt e-mail me back but rather called me immediately. The situation he
described was that he still had not developed his app idea; furthermore, the
new studio had not signed an NDA. Regrettably, someone was selling his app
idea, and he had no way of proving it was his. Unfortunately, this is just one of
many times in which the inexperienced have been taken advantage of through
unethical business practices.
Moreover, choosing the right developer or development studio is crucial.
This is by far the most complicated part of outsourcing the development
process. Because I own a development studio the Idea 2 App Store
(www.idea2appstore.com), I am familiar with the information most potential
clients will require. The first question you should ask is whether the
development studio or developer is local. Basically, developers are divided
into two categories: local (which I will define as your country of residence)
and overseas (which I will define as Indian, Chinese, or Russian). Both
types have positive and negative aspects. Generally, local development will
require more financially; however, you will likely get a much better product.
A local developer will afford you much greater control over the development
process. Most studios with local clientele have a more intimate connection
with clients. Frequent face-to-face meetings are ideal for development
because you will be able to communicate openly with the developer as
you become more comfortable, allowing you to share your vision more
completely. Generally, the greater personal handling of the local studios
costs more than the services of a freelance developer, but the results are
well worth the expense. In fact, the intimacy of a local studio will allow you
to see a demonstration of your app before production, meaning that you
will be able to correct any errors and greatly reduce the number of revisions
needed in the end, a benefit that will likely save you precious time and
money. Most local development studios will charge between $75 and $125
an hour for development; this usually includes all the necessary graphics.
Another option is remote development. Overseas developers typically
work inexpensively but may deliver subpar apps. This is usually due to the
language barrier and the education and experience of the developers.

CHAPTER 2: Choosing the Right Development Option

I have outsourced a few apps when I have been too busy. Of the five I have
outsourced, only one came back usable. Needless to say, I dont have
entire apps outsourced. Although there are exceptions, historically, local
developers/studios create superior apps.
At times, overseas outsourcing can be used without causing the final
product to suffer. When my studio becomes overwhelmed with client
requests, I choose to outsource some of the development. My method
of outsourcing allows me to meet client expectations while still delivering
a quality product. If I am forced to outsource development, I make sure
that it is only the backbone and basic features of the app. Because doing
these is fairly straightforward, it would be difficult for any developer to
get it wrong. After the basic features are completed, my team will then
develop the more advanced feature set. Experience has taught me that
this strategyoutsourcing the easy jobs while keeping the major features
localsaves the client money and ensures production of a high-quality
app in a timely fashion.
Outsourcing the beginning design and easy features is generally the most
mundane part of the development process and can be handled by a relative
amateur. There really isnt a need to spend top dollar when having the base
features implemented. For the select few with unlimited means, you could
certainly keep all the app development local, but for those who need to
economize, the hybrid development plan works well. Once you have a good
base app built from outsourcing, find a quality local studio or developer. This
is when having someone that is experienced matters. That person will be in
charge of handling the more difficult features and overall user interface (UI),
or, basically, what the user sees: buttons, images, animations, icons. By
handling the development process in this manner, you will save time, money
and headaches.
After you have found your developer, what should you do next? First,
get a sound contract written. Fortunately, you do not necessarily need
an expensive lawyer to make this happen. Search the Internet; there are
hundreds of template contracts you can use. Make sure the contract grants
you the rights to the source code of the app. If a developer will not grant you
the rights to the source code, do not work with that person! Web sites such
as Elance (www.elance.com) are useful for finding developers but are plagued
with the issues discussed previously.
Before taking your idea to the developer, design the concept on paper.
When a client comes to my studio with an app idea but no paper or
Photoshop model, I almost instantly turn the client down. If you take the
time to design the app, you will save yourself expense and frustration.
Remember, you know in your head what the app needs to look like and do;
nevertheless, developers cannot read minds! The more prepared you are,
the better chance you have of your apps being a success.

10

CHAPTER 2: Choosing the Right Development Option

It is no longer 2009; the App Store is a very crowded and competitive

marketplace. If you are looking simply to create the next goofy fart app and
retire, you should probably think again. Since the launch of the App Store
redesign in iOS 6, it has become even harder for apps to get noticed, and
things arent going to change with iOS 7. You are going to need a great
title, awesome keywords, a killer description, a superb app with beautiful
graphics, and a near genius marketing plan. I am not trying to intimidate
you; I am just letting you know the facts. Lucky for you, you have this
handy-dandy book.

Picking the Right Title

When app lovers are searching for new apps to download, they first see
look at the apps title. The App Store loads the title of the app first and then
loads the images asynchronously (in the background). Therefore, in order to
sell, your title must be catchy and enticing. A user needs to be able to read
the title and instantly think, I have to buy this or Hmm, this is interesting,
better open it and check out the details.
There are two types of titles: plain and description. A plain title is just that:
the title of the app. This is common with popular games,such as
Angry Birds, Cut the Rope, and Tiny Wings. There are both advantages
and disadvantages to this type of descriptor:
Pros: These short names build great brand recognition and
are easy to remember.
Cons: Without a description following the title, these apps
will not get as many hits for keywords (keep in mind that
words in the title count as keywords). For instance, if your
app were called Photo CaptionCreate Pictures with
Captions, each word in the titlephoto, caption,
create, and so onwould get a keyword hit, whereas
if the title were simply Photo Caption, only photo and
caption would get hits.
Description titles, conversely, are popular with appreneurs wanting to get
a few extra hits for their keywords. Searchable keywords are divided into
three categories:
Publisher name: The publisher for the apps display name,
such as Rovio for Angry Birds. If you search for Rovio,
you will see Angry Birds right at the top.
App title: The title of your app; this can be either the plain
title or the description title.
Keywords: Keywords are hidden from the public and are
submitted with the app to the App Store.

CHAPTER 2: Choosing the Right Development Option

11

Publisher name is the strongest keyword and will yield the highest
ranking, followed by app title and then keywords. Also built into the
search algorithm are the number of total downloads, downloads per day,
and ratings and reviews. No one knows for sure the exact formula for the
search algorithm, but there are a few educated guesses among seasoned
developers. I assign each category a point value to get an idea as to how
my app will rank for a searched term. The more points, the higher the
keyword ranking. For example:
Publisher name: Five points
App title: Three points
Downloads per day: Two points
Total downloads: One point
Keywords: One point
Reviews: One point
To demonstrate, lets say our App Store publishing company (or individual
name) is Great App Publisher; our apps name is Great AppAwesome
Fun App; and our keywords are great, app, multiplayer, and game.
If you were to search for great app, chances are we would come up at the
top because great app is in the publisher name, title, and set of keywords.
There is some speculation that if a word is in your title, then it doesnt
matter if it is one of the keywords. This was true until only recently. Now,
if you searched for a term, for example, great multiplayer (for our game),
and great and multiplayer werent in our set of keywords, then our app
wouldnt have shown up. For this reason, I like to include my apps title in
my set of keywords. For the search great app, we would have gotten ten
points for the searched terms, regardless of downloads or reviews. That is a
very good result, and it would be easy to keep a high search result for that
ranking. Understand that this hypothetical scenario is an ideal case. Usually,
publisher name is not something you can get a hit on; sadly, thats just the
nature of the beast.
Although you cannot control all aspects of the keyword process, there are
still ways to show up very high in the search algorithm. Initially, rank is easy

12

CHAPTER 2: Choosing the Right Development Option

to escalate with new apps, but it is much harder to achieve a high position
by climbing the ladder over time. Follow these three steps to ensure you are
ranked high when your app is released:
1. Make sure your app has a few good keywords in
the title and be certain they are used as description
to avoid rejection by Apple. Technically, Apple does
forbid having keywords in the title, but if they are
used as a description of your app, Apple does not
care. Take, for example, the app name Gun Range
Fun Exciting Super Awesome Gun Range. Apple will
reject this instantly because you are using keywords
blatantly in the title. Now, lets say we change the
app name to Gun RangeVirtual Shooting Range
45+ Guns. Apple would likely allow this because
it is a description of what the app does. This is a
fantastic way to get a few extra keyword hits.
2. Check that you have a good set of keywords,
including your apps title name. Recently, Apple
changed the search algorithm, such that you cannot
search for a word in the title plus a keyword and
see a result. Therefore, always include your apps
title as a keyword. There are rumors that Apple
will be reverting to the old search algorithm, but
be forewarned that minor things such as this are
changed quite often.
3. Look to see that you are getting a lot of downloads
in the first 72 hours of your apps going live. This is
the crucial time for determining where you show up
in the search terms ranking. The first three days can
make or break your app. Dont worry; there is a ton
of information later in the book about how to get the
downloads youll need.

Choosing Quality Keywords

Once your app is in development, there is still work to be done. This is
the time to do research on the most important part of the app: keywords.
Keywords, as mentioned earlier, are words or phrases that users will search
for to find your app. No matter how great your app is, if users cannot find it,
then it will not sell. Regrettably, a defined set of keywords that will guarantee

CHAPTER 2: Choosing the Right Development Option

13

your app is found and downloaded does not exist. However, the web
site AppCodes (www.appcod.es) is a hidden gem, a resource for keyword
help. This site is incredibly useful for optimizing search terms. Its value
lies in allowing you to see your competitors keywords. This is huge! Most
people do not understand the power of keywords and how they are used
to increase your apps visibility in the App Store. Quality keywords will put
your app in front of the most users, and because of the vast number of apps
available to consumers, you will need all the exposure possible. There are
no set keywords that produce perfect results. Each app is different and, as
such, requires specialized keywords.
Many developers will attempt to benefit from successful apps by including
app names in their set of keywords. The purpose of this ploy is to gain traffic
generated from popular apps. Although on the surface this may seem like
a logical plan, it is not a good idea for one reason: in general, people dont
search for apps by name. Users will usually enter a search term such as
fun game or free shooting game.
So, once you have done your research and have your keywords ready, what
can you do next to ensure success?

Designing a Quality App Icon

Besides the title, an apps icon is probably the most important factor in
determining whether the app is downloaded. Consumer research attests
that people like visually appealing icons. Case in point, we had an app that
was really entertaining in terms of content but that had a really ugly icon.
Sales were disappointing, to say the least. In an effort to improve sales,
I decided to have the icon redone from the ground up. The icon looked
substantially better; the makeover gave it that visually appealing wow
factor. Overnight, sales quadrupled and continued to rise. The app went
from being ranked 157 to 24 in games in one day. Remember when I said
that users love updates? When updates address the issues and concerns
users have, they are ecstatic to see the changes; happy users often tell
other people about the apps they enjoy.
Because visual appeal is subjective, there is no set standard for designing
an icon. Often, the graphic design process is the greatest struggle for
appreneurs, but there are some guidelines that can make the process less
painful. First, look at what kinds of icons your competitors have. What do you
like about them? What do you dislike? Have the users said anything about
the icon in the reviews? Once you have an idea for an icon, jot it down, and
find a quality graphic designer. Do not pinch pennies when it comes to the
graphic designer. Graphic designers abound, but quality graphic designers
are much more rare. Finding a designer is much like finding a developer. You

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CHAPTER 2: Choosing the Right Development Option

need to look into the persons past work and check the quality. Remember,
the icon can make or break the app. I have seen apps that had the potential
to go viral, but because the icon was so unappealing, users simply didnt
download the app. To consumers, their phone is a prized possession; no one
wants ugly icons on their home screen.
When you have what you think is a good icon designed, share it with your
friends. Ask for their honest opinion. Listen very closely to any constructive
criticism they may have. I would also post the icon on any forums that
may be specific to your app and ask for opinions there. Two forums,
iPhoneDevSDK (www.iphonedevsdk.com) and MacRumours
(www.macrumors.com), are both generally good for this type of thing.
Feedback is always important, and it is imperative to your apps success
that you learn to receive it. Just because you like an icon doesnt mean
everyone else will. Do not get so invested in your personal opinions and
tastes that you discount valuable information. Ultimately, your goal is to
make an appealing app for a user, not yourself.

Writing an Engaging App Description

At this point, you have developed your app, chosen keywords, and designed
a beautiful icon. You should be finished, right? Almost. At last, you are in the
final stages of the development process. To complete the process, you need
to write a great description of your apps purpose and function. Think of the
apps description as a summary of what the app will do. Grab your favorite
book or DVD, and flip it over to the back for inspiration. Imagine you are the
app consumer. What could you read that would compel you to download
the app? If the consumer is reading your description, that person is already
intrigued; either your icon or your app title has piqued the consumers
interest. Now, it is time to close the deal! As an attention grabber, I like
to start off my descriptions with any awards or great reviews my app has
received. If a popular app review web site reviews one of my apps favorably,
I will copy and paste the short review into my description and cite it. Users
like to see this; it shows them they are downloading an excellent app.
Even if you dont have a popular web review, you can also benefit from
posting a specific users review from the apps Reviews section. Although
anonymous reviews are not as prestigious, they are still worthwhile,
especially if your app is new. After positive reviews, I then like to put a few of
the apps highest-achieved rankings in the apps description.
When users open my app, the first things they see about the app are
positive. They see it has a good ranking and that it has earned favorable
reviews. Oftentimes, this alone can be enough to get you that download.
Yet, although you want to present your app in the best possible terms, it
not advisable to invent good reviews or rankings if your app has not yet

CHAPTER 2: Choosing the Right Development Option

15

earned them. Give it some time; if, after a few months, you dont have a
good review or high ranking, it is time to make some changes to your app,
because something is not right.
Once you have a good description written down, take it to an editor, or
a friend who is grammatically gifted, and have him or her proofread it.
Chances are by this point youre very excited about your app, and this
can cause you to overlook a typo or other error. Trust me, I know from
personal experience how embarrassing proofing errors can be. Granted,
this metadata can be changed even after an app is live, but it still makes
you look bad. You want your description to be engaging, informative, and
accurate. Despite the descriptions importance in terms of appeal to app
users, do not be misled by appreneurs who tell you that you can get search
hits for words in your description. This is not true. Your description has one
main purpose: to tell the user what your app will do.

Creating Enticing Screenshots

Last, but certainly not least, is the apps display screenshots. In iOS 7, apps
are displayed via tiles. These tiles show one app at a time, but they offer
much more information about the app than previous displays. The biggest
addition is that your screenshots show up on searches. Screenshots are
now make-or-break for your app. Take a look at Ironhide Game Studios
Kingdom Rush Frontiers:

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CHAPTER 2: Choosing the Right Development Option

Screenshots are usually the first and last image users see before buying the
app, so you need to impress them. Weary buyers are often convinced to buy
an app because the screenshot sealed the deal. Screenshots are generally
of two varieties in the App Store: plain (essentially, an exact replica of the
apps screens) and designed. Designed screenshots can either enhance
or degrade an app, depending on the quality. Most use an iPhone template
and add cool colors and text over the plain screenshot that really make the

CHAPTER 2: Choosing the Right Development Option

17

image come to life. For ideas on how to do these well, take a look at the top
25 apps. These are usually done by companies with large budgets and have
amazing graphics. But, bear in mind that whereas you cannot go wrong with
a simple screenshot, a poorly designed screenshot can have devastating
results. Recently, I tested my theory. We had a funny picture-captioning app
that was ranked number 12 in its category. The app had plain screenshots,
so I decided to make some rather poorly designed screenshots and see
what happened. (Testing a theory on a top app is not generally a good idea,
but I was willing to risk it in the interest of gathering the most accurate data
for this book.) Almost overnight, the apps ranking fell by nearly a hundred
spots. To test the positive effects of superb work, I had my designer create
some professional screenshots. My theory was proven to be accurate. With
the new, graphically pleasing screenshots, the app surged in the rankings to
number 7, even higher than its earlier position!
An effective strategy I like to use when making designed screenshots is
to try to tell a story. If you can do this successfully, potential buyers will
be attracted. Make the screenshots colorful and fun. Users are buying
apps to have a good time; make them entertaining! Here are the example
screenshots from our photo-captioning app Meme Creator Pro. They are
very simple, but much more entertaining than plain screenshots.

Do you see how these screenshots tell the story of the appwhat it is and
does? Well-designed screenshots such as these are also more amusing and
visually appealing than ordinary, straight-from-the-phone screenshots. If you
have been researching apps, you probably noticed that most of the top-selling
apps include well-designed screenshots. Why do you think that is? Simply put,
good-looking screenshots drive downloads. The possibilities for screenshot
design are endless and vary with each unique app. If you find a good designer
for your screenshots, stay with that person. As discussed previously, finding a
reliable, capable designer is not an easy task, and you may have to work with a
few different people before finding one that meets your needs.

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CHAPTER 2: Choosing the Right Development Option

Finally, you have your first app ready to be uploaded to Apple for review.
Keep this in mind: Apple has become much stricter on the content it will
and wont allow in the App Store. To avoid rejection, be sure to review the
Apple IOS Human Interface Guidelines before submitting an app. If your
app requires any type of login or registration, provide Apple a test, or demo
account, in the Review Notes section of the metadata. If you have any
concerns as to whether your app may get rejected, I recommend signing up
for any developer forum and posing your questions there first. My personal
favorite is iPhoneDevSDK (www.iphonedevsdk.com). Quality developers and
appreneurs have formed a professional learning community via this site, in
which developers will help solve your most troubling content issues. It is
likely youll see me posting on there as well. If your app gets rejected, dont
panic and start to wave the white flag. I have had more apps rejected than I
can count. My first reaction was usually worry over the months I had spent
working in vain. Usually, you will get a message from the reviewer explaining
why your app was rejected. Simply make any requested changes and
reupload. If you reupload a rejected app, the same reviewer will review it the
second time. If it gets rejected the second time, the odds are that particular
reviewer will never accept it.
To circumvent the same reviewer, change the apps title, using, for example,
a string of random letters, so that you can use the apps title again when
you reupload the app. Then, start the upload process again from scratch,
reuploading the app. This time, you will get a new reviewer, and maybe your
luck will be different. At this point, you will need to create all new metadata,
keywords, and screenshots. My rule of thumb is that if I get rejected from
three different reviewers, then I throw in the towel. I draw the conclusion that
my app contains content that Apple will not allow. If you can find an app in
the App Store that is similar to yours, but you are getting rejected, just hang
in there, and keep uploading. It may take some time, but if the other app
was approved, so, too, can yours be. Once your app is live and in the App
Store, you can finally relax, right? Wrong. Relaxation of concern is the most
crucial mistake amateur appreneurs make.
How to create considerable profits and long-term revenue are considered
next, in Chapter 3.

Chapter

Dont Compete in
a Market, Create It
A lesson I have learned from the App Store is that apps in specialized
markets can do very well. Specialty, or niche, apps are apps for very specific
hobbies or types of people. The possibilities are endless: video games,
sports, dogs, bird-watching, fishing, astronomy, and so on. Even though
these hobby-targeted apps seem to appeal only to a small segment of the
population, they can easily bring in six figures. Unfortunately, the success of
niche apps is overshadowed by the more widely touted news of someones
creating the next game sensation. Realistically, the odds are stacked against
you in terms of creating the next viral game craze. Among the stories that
generally go unpublished are those of apps in specialized categories that
generate tons of long-term revenue and that have much less competition.
I reached out to a fellow appreneur, Brass Monkeigh, when writing this book.
His unique series of apps not only transformed the app market, but also
literally created a new genre of apps. Brass Monkeigh shares his chronicle of
how business acumen can be born of personal passions and interests:

The story of Brass Monkeigh Apps begins with a familiar set

of circumstances: a college dorm, too much free time, and
an idea. In 2009 I was a college student taking introductory
programming courses. In my spare time I, like most of my
roommates and peers, spent far too many hours playing video
games. Having the engineering mind that I do, I always kept
a calculator next to me while I played. The purpose of this
was to keep track of my kill-to-death ratio, which is commonly
considered the primary statistic for determining the skill of a
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CHAPTER 3: Dont Compete in a Market, Create It

player. After every few games played, I would bust out the
calculator and figure out how many more kills I needed to
add to the numerator of the equation before my ratio would
tick up. Streamlining this simple math equation became the
springboard on which my company was launched.
Around the same time, I purchased my first iPhone. The
devices ease of use and ability to support custom software
amazed and intrigued me. I made it a personal goal to learn the
necessary programming language and design a specialized
calculator for the iPhone that would calculate and track my
kill-to-death ratio for me and then provide me with different
statistics about it. After a month or so of saving tips from my
food delivery job, I managed to scrape together $250. I then
asked my parents for a loan for the remaining $200 needed
to purchase a used MacBook on eBay. This first MacBook
wasnt pretty, but it did the job. With only a 13-inch screen
there was barely enough room to fit the iPhone simulator, but
it was enough for me to design my first app.
After I had a working model of what I called the Kill Death
Ratio Improvement Tool, the question arose as to whether
to publish the app in the App Store. This question did not
have a straightforward answer. I had already spent $450 on
this project, nearly half of which was borrowed money that
I would have to pay back, and to publish my little calculator
in the App Store meant signing up for the iTunes developer
program, which would set me back yet another $100. One
hundred dollars buys a lot of ramen noodles was all I could
think of. According to my logic at the time, after I convinced
five or six friends to download my app, I would still be out
more than $90 in the long run. Thankfully, I could not have
been more wrong.
January 2010 rolled around, and by that time I had repaid my
parents and even had a little holiday money burning a hole in
my pocket. I decided to sign up for the developer program
and publish my app. By the end of the month, the Kill Death
Ratio Improvement Tool by Brass Monkeigh Apps had been
published in the iTunes App Store. What happened next would
change my life forever. My first day I had three sales. I couldnt
believe that three totally random people had paid to download

CHAPTER 3: Dont Compete in a Market, Create It

the app I made. The following day, three turned into five.
Before long I was making nearly $10 a day, which meant that
I would be able to recover the cost of the developer program
in only a number of days, compared with the year I thought it
would take.
The excitement consumed me. Literally overnight I went from
a college student sleeping until noon to a motivated individual
waking up at 7:00 am every morning to check my download
report from iTunes. Shortly thereafter, I started receiving e-mail
requests from users of my app asking me to include more
features. I spent more long hours working to oblige those
requests. Soon, I was devoting as many hours to programming
as I was to my delivery job.
The process of listening to customer feedback and updating
my app accordingly turned into a continuous cycle. The days
turned into months, and before long, I had what could be
considered a small business. Over the course of two years,
Ive learned a lot about the app market, and I was honored
when Taylor asked me to share some of that knowledge in
his new book. There are many lessons that Ive learned, but I
feel that my friend Brian, of Web Pyro, summed it up best. He
told me, Some of the complex issues that you run into when
designing software are so crazy that they probably only have
one-in-a-million odds of ever occurring. The problem is that
there are millions of them, so statistically youre bound to run
into a few. He could not have been more right.
Although I feel that my career as a programmer is still just
beginning and that the experiences I have to draw on are
limited, I have found several lessons to be near universal truths.
The first of these truths is that working as an independent
software developer provides you incredible freedom. You have
the freedom to set your own hours and work how and when
you please. Yet, although it may feel like you are your own
boss, youre not. Your customers are your boss and should
always be treated that way.
The next word of advice I would pass along is that you can
never expect to make everyone happy. It is an unachievable
goal that you must always strive for, but no matter how vast
of a resource pool you devote to your products and customer

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CHAPTER 3: Dont Compete in a Market, Create It

satisfaction, you will never please all your customers. Handling

these seemingly illogical consumers will be what defines your
companys reputation, its character and integrity.
Finally, competition is not warfare. I carved out a niche for my business,
and it has since become a crowded one. Although I strive to make the
best products I can, I must acknowledge that there will always be others
out there who come along and make similar (and, admittedly, sometimes
better) features for their products. This is, in fact, how I met Taylor. We both
designed similar products but managed to learn from one another rather
than undermine each others efforts.

Competition, success, and failure are all part of the natural

cycle of business and life. I am very thankful for the success
that the App Store has given me, but it is important to know
that success can depart as quickly as it arrives. For this reason,
it is important to act with the understanding that nothing lasts
forever and to enjoy any success you experience while it lasts,
because only time will tell how enduring any given market truly is.
Brass Monkeigh makes some major points I want to emphasize. I am sure
you have heard the saying The customer is always right. This is beyond
true for users. If you fail to keep your users happy, your apps will not do well.
Brass Monkeigh saw a market opportunity and was able take advantage of
this knowledge. He customized his apps to meet the needs of a particular
segment. He is very humble, but let me tell you, his latest line of apps is
very well done and incorporates any possible feature a user could imagine.
Because of Brass Monkeighs willingness to optimize features and content
based on his customer bases requests, his apps have consistently ranked
among the top 100 in the reference category for more than two years.
Lets apply this concept to your app. If you already have an app in the
App Store, you probably woke up to download your sales, expecting to
be a millionaire; odds are this didnt happen. Maybe your lack of success
is what has motivated you to read this book. If success has eluded you,
it is not time to give up. Rather, it is time to analyze your app and come up
with a good business model. The reason I have dedicated an entire chapter
to niche and specialty apps is because of the competitiveness of the App
Store today. The days of creating fart apps and fake fingerprint scanners
that make millions are over. Truthfully, I am glad about this because I would
get infuriated when I would see these stupid apps making tons of money.
People now expect quality, complex apps that focus on special interests
and hobbies. If youre able create apps that enhance or integrate into a
consumers hobbies, you have struck gold.

CHAPTER 3: Dont Compete in a Market, Create It

23

Picking the Right App to Develop

I cannot tell you how many clients come into my office each day and
have this amazing idea for a game that is going to make billions.
Usually I just shake my head. The gaming category of the App Store is
beyond competitive. If you create a game, your competitors, who are not
independent developers, but multimillion dollar companies, will have a
significant advantage. I get this e-mail approximately once a day: I want to
create a game like Angry Birds. Really, you want to compete against an
app that is so popular and branded that it now has shirts, toys, candy, and
even headphones? Yeah, that will go well. Can you sense my sarcasm here?
Most novice appreneurs do not fully fathom the complexity involved in
creating popular games. To compete alongside the games of this quality will
require an investment of hundreds of thousands of dollars. For this reason,
I deliver the same forewarning to all clients who want to develop a game app:
you will make a dollar or millions, but there isnt much room in between.
I know scores of developers and appreneurs; many have made millions on
apps, but none have made millions on games. I never shoot someones
dream down, but I try to let clients know that they are taking a huge gamble
and that the odds are stacked greatly against them. So, to minimize risk,
I try to convince them that their first project should be smallera niche app.
You need experience before taking on such a major project.
Perfection without practice is an unreasonable expectation with any
endeavor, and creating apps is no different. Therefore, I begin questioning
my clients about hobbies and passions to help them with the app
development process. Usually, by the end of this conversation they have
nixed the idea of a game in favor of a niche app that will yield them more
money and cost a fraction to develop. Whereas the gaming market has a
small potential to be lucrative, the niche market shows promise for
long-term financial gain. The simple economics of supply and demand
explains this phenomenon. The games market is flooded with choices;
however, the niche market has fewer offerings for the target population.
Needless to say, when consumers search for apps relevant to their particular
hobby, the scarcity of choices will influence them to download those apps
that appeal to their interests. It is a little known fact among experienced
appreneurs that the specialized market is extremely popular and powerful.
I am not a fortune teller, but I could probably take your phone, look at the
apps, and tell you what your hobbies are.

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CHAPTER 3: Dont Compete in a Market, Create It

The Power of Niche and Specialty Apps

Advertising and marketing niche apps is not difficult. For instance, maybe
you have created an app for bicyclists because youre an avid cyclist.
Initially, you want to make sure when you market the app that only
cyclists are exposed to the ad. There is no point in doing broad-spectrum
advertising, for example, using Facebook or Google, because not everyone
cares about cycling. Free advertising is always the best, so begin accessing
some forums for cyclists. Then, post about the app to let people know about
it. It is likely the cycling groups will be excited to see what you have created.
Next, look on YouTube for some popular cyclists. Remember, you have a
new app, so dont approach Lance Armstrong or Dave Mirra. Instead, find
popular but lesser-known cyclists. Reach out to them, and see if they are
willing to back and promote the app. You should expect to offer the cyclist
sponsor something in return for the endorsement, either money or exposure.
My experience has shown that having some popular YouTubers backing
your app will be worth the aggravation; popularity sells.
After you have recruited popular cyclists to back your app, people on the
forums will be talking about it. Now, it is time to approach some cycling
companies for affiliate programs. Affiliate programs are set up to offer
you money for selling a companys products. Companies providing these
programs are also willing to advertise your app for you; of course, while
they are advertising your interests, they are simultaneously advertising the
companys products. By the completion of the affiliation process, your app
is selling, and you are making steady revenue. Consequently, people are
buying your affiliates products from the app, and you are making even more
revenue. Affiliate programs are a well-kept secret in the app world that you
now know about! The cycling example serves as a model for successful app
marketing. Even though you may not be creating a bicycling app, changing
this template to fit your apps needs is very simple.
In the world of niche apps, customer relations is paramount. People will
want to contact you about your app. This may be in the form of a bug
report or just someone saying that he or she enjoys the app. Be sure to
include a simple e-mail form in your app for these inquiries. Getting back
to your customers in a timely fashion will benefit you significantly in the
long run. You can build a great relationship with a user just by taking a few
seconds to e-mail that person back. If your app is for users between the
ages of 12 and 18, this is even more important. Young consumers think
it is cool when the developer e-mails them back and often will look up to
you. Also, if your particular app is conducive to community interaction,
take advantage of this. For instance, Brass Monkeigh makes guides for
popular video games; he has one of the best customer relations models of
anyone I know. He personally writes responses to the majority of his users

CHAPTER 3: Dont Compete in a Market, Create It

25

e-mails and interacts with his users via Facebook and Twitter. His best
form of customer interaction, however, is community games. He invites
his users to play the video games with him. By making a connection with
his consumers, he ensures that these people will download each app he
makes, and believe me, they do. People also share and retweet his apps
constantly on the various social networks. So, Brass Monkeigh has created
a virtual relationship with his consumers, resulting in repeat business and
free advertising!
By taking the time to build a relationship with your users, you are
guaranteeing they will buy your future apps. These actions will make them
feel like your friend; as a friend, they will likely advertise your apps to others.
Remember to respect your customers. They paid money for your app, so
keep them happy, and add the features they want. The appreneurs that
listen to their customers are always successful.
Now it is time to further your app education by learning about the various
business models for apps. This topic is covered in Chapter 4.

Chapter

Generating Revenue from

Various Business Models
As you learn more about the world of apps, you begin to understand that
different types of apps require different business models. Most amateur
appreneurs think that the only way an application can generate revenue is
with the paid model (pay a flat, one-time fee to download the application;
$0.99, $1.99, $2.99, and so on). This is the simplest strategy, but it doesnt
always produce the results you desire. Recently, I have noticed that free
apps with in-app purchases, or freemiums, have dominated the market.
Here is why: people do not hesitate to download free apps. You will
generally get between 50 and 100 free downloads per paid download.
That means (at the high end), if fifty people downloaded your app for
free, one would have paid outright for it. Now, if this sounds like a very
low number, thats because it is. The freemium model changes this up in
your favor substantially. Please note, however, for the freemium model to
work, you need to have an application that is enticing and entertaining.
If your application is not something of value, why would a user buy premium
upgrades? Lets go on a quick tangent to illustrate this point. When you
think of the apps that generate the most money, which ones come to mind?
Possibly, you thought of Angry Birds, Words with Friends, or Cut the
Rope? You might be surprised to learn that of the top-5-grossing apps, all
are freemiums.
One of my freemium favorites, Zynga Poker, serves as an excellent case
study. This app is free for anyone to download. As you begin to play, you
are given a limited number of chips (virtual currency) with which to bet. Each
day you play, you are awarded a few more chips. But, if you lose your entire
daily chip allowance, how can you continue to play? In App Purchases the
game allows you to buy chips and keep playing. The game designers draw
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CHAPTER 4: Generating Revenue from Various Business Models

players in with the free app. This allows you to play and get hooked. When
you run out of chips, you have two choices: wait until the next day to play
or pay a small fee to continue playing. Two personality traits that seem to be
shared among app users are impulsivity and impatience; users hate waiting!
A wise appreneur can use this knowledge to his or her business advantage.
Surely, you are wondering who would pay for virtual currency that has no
real value. Ill answer that for you: millions of people! Dont just take my
word for it. Research the top-25-grossing apps (top-grossing apps are the
apps that produce the most revenue, not downloads), and see how many
are freemiums with virtual currency or upgrades.
Another example, Temple Run, also took the App Store by storm.
I downloaded it and played for a while, all the time wondering, How does
this app make any money? My first couple of exposures only showed it
as a freemium. Then, I saw it; as you progress through the levels, you earn
coins to use on upgrades and unlocks. The games design includes an
in-app purchase to acquire more coins. Once again, I thought to myself,
Who would buy this? It has no purpose. By the next day, I could answer
my own question because I was hooked on the game and wanted to
upgrade my character. My decision was a simple one: I could play for a few
hours and earn the coins or spend a buck and buy them. I bought them and
was actually quite happy with my purchase.

Making Money from Free Apps

Just because an app is free doesnt mean it cannot make any money. The
preceding case studies, Temple Run and Zynga Poker, serve as excellent
examples for disproving the notion that free apps are not profitable.
Freemium apps are still one of the best ways to generate a large number of
downloads and then translate those downloads into good, stable revenue.
Remember, you will likely get between a 1to 50 and a 1 to 100 paid-to-free
download ratio. By being able to convert this massive number of free
downloads into sales, you will likely make more money than with a paid-only
version. When I am creating a freemium app, I like to include ads and in-app
purchases. If you have a paid version of the game, do not feel guilty about
adding ad banners to it. Ideally, you want to annoy users with the ads in the
hopes that they will buy the paid version to remove them. Furthermore,
I also try to provide an array of in-app purchases. The more you can think
of, the better. You can have in-app purchases to add features, upgrade
in-app features, remove ads, and much more. As mentioned earlier, you will
be surprised by the things people will buy. Just because you find the idea
of purchasing virtual items ridiculous does not mean a user will share your
perspective.

CHAPTER 4: Generating Revenue from Various Business Models

29

We have discussed both paid versions and freemium versions, so what is

left? Free with ads is a business model that I would suggest only if there are
no applicable inapp purchases and if a paid version doesnt make sense.
This model allows you to have a completely free application, with ads. These
ads are your sole source of revenue.The more users you have, the more
money you will make on ads. In reality, appreneurs will not likely become
millionaires from only ad revenue, but there is still money to be had.
The final business model is known as user base. A user base is essentially a
collection of users who are engaged with the app. Most user bases contain
a database with e-mail addresses. In todays online world, user bases
are worth their weight in gold. I am sure you have heard of the free app
Instagram. It seems unbelievable but true that Instagram has made more
than one billion dollars without offering a single ad or in-app purchase.
In a famous business transaction, Facebook purchased Instagram, primarily
for its user base. This has happened more times than you would think in the
App Store. Apps that require users to register will give appreneurs access to
users names and e-mail addresses. This can be an invaluable business tool.
If you build a good e-mail list of your apps users, you can then market to
them directly, via e-mail, when you release a new app.

Choosing the Right Business Model

After considering all the business model possibilities, which one will you
choose for your apps? That answer should be fairly straightforward: all of
them. Many of the top apps have both a paid version and a free version
with ads and in-app purchases. For what business reasons would they
offer two choices? Exposure. Offering two versions doubles the chances
that a user will find the app. The free with ads and in-app-purchase-backed
versions typically generate a greater number of downloads. Moreover, the
more downloads you have, the more users you have; the more users you
have, the more people are talking; the more people are talking, the more
downloads you will get. See the cycle here? To generate revenue, your app
has to be downloaded. Your goal is to get users who downloaded the free
version to upgrade to the paid version. Unfortunately, there is no guarantee
that this transfer from free to paid will happen. Keep in mind that there are
users who will never pay for an app; you will probably not influence their
mind-set, regardless of what your app is or does. So, how do you reach the
users who are willing to pay? How do you convince them to download the
paid version? If your app is a free game, I would use the following model:
After each turn, show users a full-screen ad asking them to buy the full
version. If they click the ad, it should take them directly to the App Store
to make the purchase. It will likely require multiple exposures to the adt to
generate a sale, but if they play the game often, soon it will annoy them
enough to purchase it. This method of advertisement is a tactic commonly

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CHAPTER 4: Generating Revenue from Various Business Models

used by large companies. I actually saw this work with my girlfriend. She
was playing one of the online games such as Scrabble, and she was getting
annoyed seeing the ad appear after each turn. Finally, I saw her digging
in her purse for her credit card. I highly doubt she stopped playing to pay
some bills.
Briefly, I want to cover how users in niche markets will pay more for apps.
For this example, I will use an app I made that I will call App X (I leave
my apps out of this book because I am not selling you a product; I am
teaching you to make one). App X was a paid app ($2.99) that included
premium features. I had thought long and hard about what model I should
use. The paid-only version was generating good revenue. The users who
bought the app absolutely loved it. I added the new premium features as a
nonconsumable in-app purchase (nonconsumables, in app purchases, are
bought one time and unlock new features or content). I really didnt expect
the results I saw the next morning, when I downloaded my sales report.
I had a 78 percent conversion rate. That meant that 78 percent of the people
who bought the app also bought the in-app purchase. The lesson learned
from this scenario is not to underestimate the power of premium features
in a niche market. Just because users have already purchased your paid
version, that does not mean they are unwilling to pay again. The opposite is
actually true, for one simple reason: people who are willing to pay for apps
are exactly that, willing to pay! Make sure you take advantage of this,
or you will be passing up a ton of potential revenue.
Now that you have gained insight into the variety of business models
available, lets consider the importance of managing your users. This is the
focus of Chapter 5.

Chapter

Managing Users Today

for Success Tomorrow
In the summer of 2011, I created a new app that I hoped would be a real
success. After a few months of low sales, I decided to make the app
freemium. With this new model, the app saw thousands of downloads
each day. Server costs began to get pretty expensive, and the app was
taking up a lot of my time. Server costs are generally calculated based on
the amount of data your apps database uses. If you have an app that has
a lot of database interactions and a lot of users, your server costs can be
hundreds of dollars a month. I wanted to move on to a new project, so I
decided to sell the app. Although the app did not generate much revenue,
it had a massive user base. I listed the apps rights for sale; the app sold
within 48 hours. What was interesting about this was that the buyer didnt
purchase the app because he liked it or because he saw it as a million dollar
investment. He purchased it for the user base.
Another little-known fact among the majority of appreneurs is the worth
of a good user base. Some of my success can be attributed to my early
realization of this truth. If you fail to capture your user base, you have a
bunch of random users and no data to track. I advise clients to capture, or
try to capture, a users name and e-mail. Collecting this data is relatively
easy and can be done via a registration screen and a simple database.
It is beneficial to gather as much data as possible. In my apps, I capture
information using the following fields:
E-mail
Username
Version number
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CHAPTER 5: Managing Users Today for Success Tomorrow

Paid or free
Number of in-app purchases
Online or offline
Number of e-mails (either to the developer or telling friends)
Number of in-app tweets or Facebook posts
To the inexperienced this may appear to be too much information, but skilled
appreneurs realize that information is power. That database interactions
are fairly inexpensive makes the data retrieved through them all the more
valuable. If you are able to capture a ton of user data, you are going to be
an expert about how your app is used. For instance, knowing how many
people are online at a particular moment is valuable because it tells you if a
new update or added feature was a hit or a miss. Moreover, in the event that
the time comes for you to sell the rights to the app (see Chapter 10), you will
have all the data at hand. As a result, you will have no problem selling the
app. Investors love when apps have a good user base. Investors will want to
know trends, daily active users, and if there is an e-mail list associated with
the app. Ready access to this information will increase the likelihood that the
investors will work out a great offer for you. They will view you as a business
professional who deserves respect. In contrast, if you dont have data, you
will appear unprepared and unworthy of a fair offerif they decide to make
any offer at all.

Capturing the Right Data for the Right Results

Capturing your users information is just part of a successful data retrieval
plan. You need to keep your users happy. Most important, you need to keep
them using the app! I encourage clients to create a simple e-mail address for
their app. With an e-mail address, users can contact you without ever leaving
the application. I provide a few different options for e-mailing in my apps:
Feature request: This allows users to e-mail you their
ideas for making the app better. Remember the saying The
customer is always right? As mentioned earlier, this golden
rule of business is true for your apps users as well. The best
part of the feature request is that sometimes the greatest
ideas are the result of input from your customers.
Bug report: With this option, users can tell you about any
bugs and crashes they may experience. Generally, in your
first version of the app there will be bugs. Taking heed
of users descriptions of glitches will help you and your
developer improve the overall quality of your application.
Adding this is a must.

CHAPTER 5: Managing Users Today for Success Tomorrow

Tell a friend: By far, this is one of my favorite e-mail

features. Not many appreneurs include it, and why, I will
never know. I can only assume they think people will not
actually use it. This couldnt be further from the truth.
One of our games generates more than 100 tell a friend
e-mails a day! I have a few suggestions on how to get
similar results. First, prepopulate the body of the e-mail
with text such as this: I have been using [App name],
and it is a ton of fun. You need to check it out: [HTML
download link]. You can also copy yourself in the e-mail
so that you get a copy each time this is sent. With this
data feature, the user e-mails someone he or she knows,
using this e-mail template. The recipient opens the e-mail
(you will have close to a 100 percent open rate because
the e-mail is from someone the person knows well) and
sees that it talks about an awesome app. Immediately,
the recipient notices the Click to download button and
taps it. The link directs the recipient to the App Store to
buy or download the app. Again, you have generated free
advertising!
This feature is illustrated in the following example, the Tell a friend
template for my Draw with Me app:

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CHAPTER 5: Managing Users Today for Success Tomorrow

As you can see, the template contains a prepopulated subject and body.
The body has the users name so that the person the user is inviting can play
with him or her. I also include the download URL, in addition to the apps
title and how to search for it. The more information you can give on how to
find the app, the better.
Rate the app: This isnt exactly an e-mail, but it takes the
user to the App Store to review the app. Reviews are more
important than some appreneurs realize. Understanding
the importance of reviews is one of my most treasured App
Store secrets. Reviews count toward your App Store search
number, the ranking for your app for a searched term (for
more details, see Chapter 8); the more reviews you have
(they do not necessarily need to be good reviews), the
higher you will rank for a searched term. For example, lets
say you have an app with the name App TitleFun App.
Also, you have a competitor with the very similar title
App TitleAwesome App. Both of you have App Title
as the apps name, followed by a subtitle. Furthermore,
you and your competitor have keywords that are similar or
the same. You even have the same number of downloads.
Which app shows up first in the search? The deciding factor
is the number of reviews. Knowing that reviews can give you
an edge is a trade secret. Take advantage of your newfound
knowledge.

Social Network Dos and Donts

No instructions on how to manage users would be complete without
considering the proper integration of social networks. Although social
networks might seem to be the ideal method for obtaining user data,
my advice is, do not ever require a user to sign in via a social network
to use an app. There are apps that have lost more than half their user
base because of imposing this requirement. Following are some reviews
after a top 25 game made Facebook registration mandatory. The reviews
displayed are not modified or staged; this is a screenshot right from the
games Reviews section.

CHAPTER 5: Managing Users Today for Success Tomorrow

35

Let users choose whether or not they want to use social networks. If you
are able to successfully integrate a social network, then you will be able to
market to an exponential number of users. If you neglect to use a social
network, your users are limited to the linear form of communication when
they want to share your app. The constraints of this form permit users to
communicate with only a few people at once, and most users wont even do
that. Integrating a social network allows hundreds of people to see your app
for each person that posts to the social network, resulting in app exposure

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CHAPTER 5: Managing Users Today for Success Tomorrow

to an exponential number of potential users. Each post a user makes to the

social network referring to you app will be seen by most of his or her friends
on the newsfeed or timeline.
To illustrate the social networks capability, lets say you have a photo-sharing
app. A user of your app wants to share a picture via a social network.
You need to do this in a way that advertises the app but that isnt blatant.
Instagram, for example, has implemented this subtle technique. For each
picture shared on Facebook, Instagram places a small image of its icon
in the corner. The icon doesnt affect the quality of the picture and builds
great brand recognition. Instagram also adds unique albums for the photos
users upload from the app. To clarify how this exposure can help your app,
lets look at what happens with each shared post. Our user has just posted
the photo to a social network. The user has 300 friends, most of whom saw the
picture and the icon. A few of them were so intrigued, they downloaded
the app. Now, the new users have posted a picture, a few more friends
download, and so on. This is how apps go viral. Exponential growth is
very powerful; you need to take advantage of it and the free advertising it
affords. Ignoring the possibilities social networking sites offer is forfeiting
the chance that your app will go viral. Plain and simple, the more people
that see your app, the better chances you have of its being successful.
Social networks are all about fads. If something is viewed as the latest hot
toy, people will not hesitate to download it.
Keeping your users happy is crucial for long-term app success. Maintaining
user satisfaction will encourage your users to continue purchasing your
apps, in addition to advertising your apps to their friends. Incorporate these
tips into your application development, and I believe there is a good chance
I will be reading about your app one day.
The next chapter provides a guide for determining which apps are hot and
which apps are not.

Chapter

Whats Hot and Whats Not

One trait that has allowed me to become a successful appreneur is my
ability to generate ideas for apps. Granted, I am a very creative individual,
but there is more to it than that. I have learned how to quickly and effectively
find out which apps are selling and which apps are not. Researching the
latest apps isnt as complicated as some people make it out to be. In fact,
the only tool you need is a smartphone or tablet. I have discovered that the
best way to come up with apps is to get out of your office and focus on
your hobby. I am a car enthusiast, so when I need to generate ideas or get
away from it all, I go for a drive. A good half of the apps I have brainstormed
have originated while taking my car out for a spin on my favorite road.
My experience has been that once the appreneur bug bites, it is hard to stop
thinking about app possibilities.

Using the App Store to Make Apps

Even the most creative minds become blocked occasionally. So, when you
are struggling to invent new ideas, what can you look to for inspiration?
Because the best new ideas are often inspired by old ideas, the answer
is simple: the App Store. With the App Stores structure, you can literally
see which apps are selling and which apps are not. To ensure long-term
success, make reading the App Stores top-selling apps part of your daily
routine, much like traditional businesspeople faithfully read the stock
reports. Wake up, and first check your app sales. Next, browse each
categorys top 100 apps. Here, you will see the best-selling apps, an
invaluable tool overlooked by novice appreneurs. I have clients come in
daily asking, Do you think this app will do well? I pick up my phone and
find something similar (if applicable). By using the rankings of a similar app,
I can give them a rough estimate of how much the app is making per day.
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CHAPTER 6: Whats Hot and Whats Not

After browsing these categories, take a look at the top 200 overall paid
apps. Most of these are large companies that are hard for independent
developers to compete against. Keep an eye out for developer names you
dont recognize. If you see a new app that has broken the top 200 and that
is not produced by a major company, you are looking at a hot new market.
Your diligence in recognizing new markets will provide you with guidance
about which markets are doing well. With this information, you can consider
making an app that is better than or similar to this popular app. Do not
hesitate long if you hope to capitalize on the success of a hot new market.
These types of markets are time sensitive; you need to get an app out to the
App Store. Having a good developer is a key component in terms of speed.
True, good developers may cost more, but they are generally much faster.
Steve Jobs once said, Good artists copy, great artists steal If you want
to compete with these hot, or fad), market apps, you have to be able to
not only clone the successful parts of the new app, but also expand on the
apps capabilities. To do this, you need to download the app and use it.
Also, you need to do your research (see Chapter 1). Investigate what makes
this app popular; what are the users saying in reviews? Then, ask yourself
the big question: What can I do better? If the answer is nothing, do not
waste your time and money! Conversely, if you know there is something you
can do better, it is time to hit the ground running. You need to implement the
improved features and get the app out to the App Store very quickly. Each
day you wait is a day your competitor further captures the market. At times,
these replicated apps can be a gamble, but they can pay off. Compared with
other app markets, these apps will not provide years of long-term, stable
revenue, but you can make a lot of money fast by finding creative inspiration
in existing apps. Dont forget to see if AppCodes (www.appcod.es) has your
competitors apps keywords so that you can know what the competitor is
using and employ this knowledge to put yourself even further ahead.

Tis the Season to Make Apps

Seasonal apps, such as the hot apps discussed in the previous section,
are time sensitive. Although these apps have a limited sales period, some
have been popular enough to rank among the top 100 sellers overall and
can produce quick revenue. Examples of seasonal apps range from
countdowns to important dates, to holiday cartoons for kids, to Santa
trackersthe possibilities are as endless as your creativity and your ability
to market for the appropriate season.
The season I like to focus on is Christmas. The Christmas season is the
golden time of the year for an appreneur. My first Christmas in the App
Store, I made $1,211 in sales on Christmas Day alone. Keep in mind that the

CHAPTER 6: Whats Hot and Whats Not

39

week prior, I was only averaging approximately $80 a day. Those Christmas
sales were during my first year in the App Store, and I was fortunate to
benefit from the valuable insights they afforded so early in my developing
career. Here is why Christmas is such a powerful sales season for us
appreneurs. You have kids receiving iPhones/iPads/iPods as gifts These
giftees will usually get an iTunes card for the device as well, and they will
be committed to spending every dime on this card in a matter of seconds.
The ideal demographic for Christmas sales is children between the ages
of 10 and 18. Because the age demographic is so broad, appreneurs have
creative freedom in appealing to the diverse interests represented by this
wide spectrum of ages.
One app that really did well in 2012 was a virtual Santa tracker. Hats off to
the guy who made this; he is a marketing genius. I had been tracking his
sales for the week prior to Christmas. He was ranked approximately 198
overall, which is amazing for any appreneur. When Christmas Eve arrived,
he had managed to leap to number 21! I am certain this phenomenal jump in
sales allowed him to buy a really nice present for himself. Seasonal apps are
all about being in the right market at the right time. Finding popular seasonal
apps can be done in the same fashion as outlined for other existing apps.
A word of forewarning, though, about seasonal apps: give yourself at least
a month before the peak holiday season to generate sales. In other words,
if you have a cool Christmas app, you need to have it in the App Store by
Thanksgiving. Do not plan on submitting the app on Christmas Eve.

A New Idea for a New Market

A possible, but increasingly unlikely, scenario is that your app idea is not
represented at all in the App Store. What does this mean? Some ideas are
good, and some are bad. The first thing you need to do in this situation is
talk with an experienced developer (make sure you have an NDA signed).
Check to be certain your idea is a technical possibility and something your
respective App Store will allow. If your app checks out in both of these
areas, then you are in a gambling position. The app may do either really well
or really poorly. How popular is the community for this app? If the answer
is small, then the app may not do well. In contrast, if the community is fairly
large, you could very well be sitting on a gold mine.
Just because there are hundreds of thousands of apps in the App Store
doesnt mean all the good ideas are taken. New breakthrough apps hit the
store every day, and this will continue for years to come. The more creative
you are, the better. I have created a few apps for clients for which I sat in
my office thinking to myself, Is there even remotely a market for this?
The answer was yes. One of these surprisingly successful apps was an

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CHAPTER 6: Whats Hot and Whats Not

interactive wildlife guide. Basically, this app provides information on anything

you would need to know to identify a bug, plant, or animal in the wild. This
kind of app sounds like something the majority of people would never
download, and that is a reasonable assertion; however, there are enough
enthusiasts to keep these apps in the top 25 of the reference category.
By keeping an eye on app trends and fads, youll be able to understand and
predict the app market. Once this happens, you will see your sales begin
to climb. In time, you will even be able to accurately estimate what an app
may make.

Chapter

Making the Most of Your

Advertising Money
Experience has been my teacher concerning advertising of apps. I wish
I could say that I nailed it on my first try, or second, or even third. Thankfully,
I learn from my mistakes, because I made every advertising mistake one
could before I became adept at using advertising effectively. One seemingly
sound source of advertisement advice is ad agencies. They will likely
contact you, pitching ad campaigns that are too good to be true. I fell for
this a few times. I ran a massive campaign with one of these agencies and
saw no increase in sales. I wasted thousands of dollars; I can tell you that
something like that leaves a really bad taste in your mouth. After hearing
over the years from all the fellow developers and appreneurs who have
made the same mistakes, I am a little less embarrassed. By reading this
book, I hope you can profit from our blunders and not have to go down
the same path;I hope you can gain insight from my experiences and run
successful advertising for your app on the first try!
Before we discuss what works for advertising, I want to tell you about the
failures that I, along with other appreneurs, have had. One of the campaigns
I quickly learned doesnt work for the app market is Facebook sidebar
ads. These are very inexpensive ads, but the truth is, no one clicks them.
I imagine most people just tune them out. Morever, because the majority
of Facebook users use the mobile app, which doesnt serve any ads, app
advertisement is missed by the largest segment of Facebooks audience.
Recently, however, Facebook has started showing suggested apps on its
mobile app. This is where you want to advertise your app, not as a sidebar
on the web site. I have yet to meet a developer who has had success with
the Facebook sidebar ad model, and I highly doubt I ever will. Another
issue with cost-per-click ads and apps is that when a user clicks your apps
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CHAPTER 7: Making the Most of Your Advertising Money

adand remember, this can only happen from the desktop version of the
sitethat person will likely be directed to your apps web site or App Store
URL. Then, the user must grab his or her phone and search for the app
name to download. I can assure you, this rarely happens. This business
model works well with web sites whose goal is to gain more traffic but is just
horrible for apps. If you use an impression model with Facebook, you will be
dealing with the same problems. Unless your apps ad literally screams at
users, they will probably never see it. If they do click it, we are back at where
we started, facing the issues discussed here.
What I do recommend for social networks is to use them to interact with
your users and talk about your app. Take my app Secret Happy Hour.
We started building the Twitter, Facebook, and Instagram pages months
before the app was even out. Why would I do this? The answer is simple:
I am making a nice little teaser for the app, and I now have a few thousand
people ready to download the app the day it goes live. The key to building
followers quickly is to focus on posting quality content and engaging with
your users. Dont just make your social page a huge billboard for your
app; people will get tired of that. Ask your followers questions, mention
features you are implementing, and request input; make users feel involved.
Be certain your page reflects your apps design look and feel so that you
can really brand the entire app. The Twitter for Secret Happy Hour is a
perfect example of how to do this. In only a few months we gathered a few
thousand followers and have more and more people asking about the app
each day.

CHAPTER 7: Making the Most of Your Advertising Money

43

Building followers for your app on social networks isnt as hard as one might
think. Most important, you need to make sure you are targeting your specific
demographic; there is no point in gathering tons of followers who will never
download your app. Lets look at how I handled social networks for our app
Secret Happy Hour. Secret Happy Hour is an app that allows users to get
discounts at their favorite bars and restaurants. The discounts are served
as happy hours that are available only to app users. The demographic here
is people who like to go out to eat and drink, specifically people who want
to get discounts while doing so. I quickly began following a lot of the hot
bars and restaurants around the United States. Then, I started to follow and
favorite users, based on specific hashtags. Hashtags are used on Twitter,
Facebook, and Instagram to tag a work that users can search. I would follow
and favorite users who frequenly hashtag happyhour, drinks, food,
discounts, and coupons. Next, I began posting once every few days
about what the app will do. Keep in mind that this is months before the app
was released. I would then ask users what kinds of features they would like
to see. To fill in the gaps between these posts, I posted interesting articles

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CHAPTER 7: Making the Most of Your Advertising Money

and stories about happy hours and restaurants. When you post or tweet,
be sure to use the hashtags you are targeting in your post. By so doing,
we were able to get approximately 2,000 followers in a month.
Recall the discussion in Chapter 4 of integration of social networks within
apps. hashtag This is the most effective method of advertising on Facebook;
best of all, it is free and works on mobile devices. I am a big fan of free
advertising, as you will soon learn, and have found ways to market apps
without spending a fortune.
The next advertising failure is banner ads. Granted, they are more productive
than Facebook ads, yet they still will produce minimal results, and it is
unlikely you will break even. I have tried advertising apps on a wide array
of web sites. In one of my many failed banner ad ventures, I ran an ad on
a popular app review web site, hoping to get great results. To my chagrin,
even the popularity and content of the site did not increase my sales.
Take a look at my numbers:
255,862 impressions
117 clicks
0.05 percent click-through rate

I paid almost $400 for the ad and saw no increase in sales. Obviously,
banner ads were not worth the expense. This type of ad was also one
recommended by a big ad agency. The issue with these agencies is that
they are made up of salespeople. These people are not trying to make your
app do better; they are trying to sell you something.

CHAPTER 7: Making the Most of Your Advertising Money

45

Advertising Methods That Work

The failures would not be so easy to share if I couldnt also share the good
advertising moves I have made. This may sound a bit unconventional, but
Twitter blasts are becoming a good, direct form of advertising. I ran a few
of these and had some great results. Best of all, these ads are super cheap!
Here are some statistics from an ad I ran at the same time as the banner
ad mentioned earlier.
Now, the number of impressions is a little harder to gauge with tweets.
For this, I am going to assume that all 9,000 followers saw the tweet,
which isnt the case, but just humor me.
9,000 impressions
161 clicks
1.8 percent click-through ratio

From an advertising standpoint, the percentage shown is a low click-through

ratio. I am fairly sure not all the followers saw the tweet. I did, however,
see approximately 80 more downloads that day. At a mere cost of $30, the
tweet was a beneficial advertising choice. The Twitter ad was considerably
cheaper than Facebook ads or banner ads and yielded far superior results.
These packages can be found on various advertising web sites or can be
purchased directly through the Twitter holders account.
Targeted tweets/Facebook blasts are especially useful advertising tools
with specialty apps. If you have a niche app (see Chapter 1), focusing on its
market population will allow for more effective advertising. I would stay away

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CHAPTER 7: Making the Most of Your Advertising Money

from the mass tweets mentioned earlier and try to enlist a niche celebrity to
create the tweets. This may cost more, but you will see substantially better
results. With this method your market is targeted; the majority of the people
that follow your niche celebrity belong to the same niche population your
app targets. Is the power of niche apps beginning to sink in? By working
directly with popular people in your niche, you will be able to work out new
and innovative approaches to advertising that can help your app sales reach
their full potential.

The Power of YouTube

YouTube is a very influential form of advertising that many appreneurs
simply refuse to use. I am not talking about the ads before a video or the
ads that appear in the corner of the screen; instead, I propose using videos
as ads. The more video ads you have, the better. I have yet to see a video
on YouTube with zero views. In fact, I cannot find a video, as I am writing
this, with fewer than 500 views. Because I love free advertising, I find it
wasteful not to capitalize on the free YouTube advertising market. If you do
not have one, create a YouTube account. Create an account for your app,
your development studio, even your cat; it doesnt matter. YouTube lets
you have as many accounts as you want. If you choose to make multiple
videos of your app, be sure to use a different title and different keywords for
each video. You dont want to appear to be someone who is just spamming
YouTube with videos. Change them up a bit, and you will be fine. Next,
contact a few of the big YouTube app review channels. CrazyMikesApps,
UniqueApps, AppStoreReviewer, TechTechManTV, Appolicious, and AppVee
are all good ones to reach out to. They will likely take a while to get back
to you, but if they do, try to get a video review. This may cost you between
$150 and $500, but it is money well spent. These channels have hundreds
of thousands of subscribers, and their subscribers look up to the reviewers
like gods. If they review the app favorably, their subscribers will buy it.
Finally, try to enlist a few people who are popular in the niche, and have
a video done (for tips on how to do this, see Chapter 1).
Although I have not had success with large advertising agencies in general,
there are a few marketing firms out there that can produce successful
results. These places do not come cheap, however. You arent paying for
their time; you are paying for their contacts, and believe me, they have
some good ones. One company I recently used was APPSPIRE.me
(http://appspire.me). These guys really know their business, and they have
some amazing promotional contacts. What they do is make sure your app
gets visibility and in the ways I have mentioned here. They will send press
releases to the media, review web sites, and YouTube reviewers. They will
also do Facebook and Twitter blasts for you. They specialize in advertising

CHAPTER 7: Making the Most of Your Advertising Money

47

your app during the different life cycles, which is a huge plus; they can
handle everything from prelaunch to postlaunch. If you have an app that you
think has the potential to be the next big thing, I would highly recommend
trying a marketing firm.

App-to-App Advertising
App-to-app advertising is a unique form of advertising that is very effective.
With app-to-app advertising, you show a list of your other applications in
your app. The reason this method works so well is that you have already
proven the quality of your apps to the consumer. For example, lets say a
user has downloaded one of your apps; it would be reasonable to assume
that if the user likes it, he or she will have no problem downloading other
apps you have created. There are two styles you can use to implement this
function: simple and designed. Simple is a line of code that, when tapped,
directs the user to the App Store with a predefined search for your publisher
name. The simple plan works well if you dont have anyone squatting on
your name (using the components of your publisher name as keywords in
an app to gain publicity). For this reason, I like to design my own My Apps
Screen. You can either mimic the look and feel of the App Store or create
something completely different; it all boils down to how creative you can be.
As with screenshot design, you should remember that creative ideas need
to be executed professionally. The last thing you want is for someone not to
check out your other apps because your page is poorly designed or hard
to navigate. If you are ever unsure of the execution of a design choice,
stick to the plain style.

Advertising Your App in Other Apps

There are basically two methods of using other apps for advertising
purposes. The first option is to contact the developer of a popular app who
is willing to run your app ad in his or her app. This type of arrangement will
likely cost a fair sum of money, but it can achieve fantastic results. A second
option is a service called Tap for Tap (www.tapfortap.com). Tap for Tap
employs a unique form of advertising. Essentially, you install the companys
SDK in your app, and it will create an ad banner for other developers apps
in your app. Each time this is done, you earn credits; these credits allow you
to advertise your app in the same manner in other developers apps. Using
this service is an excellent way to garner exposure for your app without
excessive expense.

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CHAPTER 7: Making the Most of Your Advertising Money

Cross Promoting User Bases

Cross promoting user bases essentially involves using networking
contacts. Through your adventures as an appreneur, you will likely meet
other appreneurs who have great apps that do not compete directly with
yours. You can approach these appreneurs and propose an advertising
trade agreement: you can advertise to their user base and, in return, you
will advertise them to yours. Again, cross promoting provides another free
advertising opportunity that typically yields excellent results. I have done
this a few times over the years and found it to be one of the better forms of
advertising. To foster a mutually beneficial advertising relationship, you must
choose the right person or app for cross promotion. I am a firm believer in
the motto Its not what you know, its who you know. Consequently,
if I find an app that I like, I try to reach out to the appreneur and let that
person know that I, as an appreneur, enjoyed his or her app. To me, it is
the highest form of compliment when another professional within the craft
expresses appreciation for your work. Generally, Ill then proceed to talk
about one of my apps or anything that might start a good conversation.
By the end of the e-mail exchange, I usually have a new appreneur friend.
In fact, this is how I met most of the people whose stories you have read in
this book. Branch out; dont be shy and sheltered. Most appreneurs are just
like you and love meeting new people. You also have something in common:
you both sell apps! No matter how much you think you know, there is always
someone who knows more. Find the experts, cross promote your apps with
them, and learn from them.
To maximize your apps popularity, exhaust the recommended advertising
markets: social networks (as integrated into your app, not Facebook sidebar
ads), promoted tweets, and videos on YouTube. Then, wait a few days,
and run a Google search for your apps name. Because of your advertising
diligence, you will probably have more results than just the standard App
Store URL. This is what you want to see. The more results that appear in
your search, the more web traffic your app is generating. Ideally, this data
will also reflect an increase in sales, so now you can pat yourself on the
back. You have just successfully advertised and marketed an app, with low
risk and expense.

Chapter

Plan to Scale, or Your

App Will Fail
The first big success I had with an app was an interactive guide for the
popular video game Halo 3. Because I was a fairly amateur appreneur and
developer, I needed app content that was relatively simple. Also, The app
market was already stocked with guide apps, so I needed to make mine
better. I partnered with one of the top professional gaming teams, OpTic
Gaming and KontrolFreek, and had them advertise the app in a lot of
different ways: run ads on their YouTube channels, post on their Facebook
and Twitter, talk about the apps at events, and e-mail their followers. This
was a fantastic way for me to maximize my exposure with absolutely no
out-of-pocket costs. Of course, not every app will allow for this scenario,
but if you think outside the box, you can always come up with unique
marketing techniques. The app reaped great results: number 2 in reference
and number 188 overall! I had tens of thousands of users, and for an app in
a market this specific, it was about as viral as it could be. I did everything
in my power to keep my users happy and engaged. I was able to keep this
app at the top for almost a year. Of the scores of lessons I learned from
this apps success, how to handle the viral potential of an app would be the
most crucial.
Going viral is when something becomes immensely popular at an
exceedingly fast rate. In the app world viral apps are a developers dream
because of the huge profit margins gained. However, as an amateur
appreneur, if you do not know what to expect and how to prepare for this
good fortune, you may not reap all the benefits possible. You will need to
plan for this in the beginning by devising strategies to handle the potential
immense amount of downloads. I neglected to do this for one of my games,
and this oversight sure came back to bite me. In the spring of 2012,
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CHAPTER 8: Plan to Scale, or Your App Will Fail

Draw Something took the App Store by storm; you literally couldnt open a
blog or e-news article without reading about it. I decided to have my team
at the Idea 2 App Store (www.idea2appstore.com) develop a spin-off of the
game. Everything went smoothly, and in approximately two months we had
a nice working version. Recall my warning in Chapter 5 against requiring
your users to login via Facebook. Zynga purchased Draw Something, and,
within a few weeks, I saw that Facebook login was now required in order to
play. I was amped! Normally, my development team doesnt bother going
up against the big companies, but this opportunity was huge. I took a look
at the reviews for Draw Something in the App Store. Just as I had expected,
the game was getting slammed with one-star reviews by annoyed users.
This was our opportunity, something I had dreamed about for years. Before
I continue, I want to underline a difficult lesson I learned from this adventure:
if you have an app that uses a database, buy quality hosting. Sadly, I did
not do this, and because I dont want to be accused of libeling anyone, I will
leave the guilty party unnamed. Basically, the company offered dirt-cheap
hosting, which was something we initially saw as a good move, as the game
we made sends and receives tons of data. Assuming we only had a few
hundred users, our hosting choice would have been a nonissue; instead,
we had tens of thousands of daily active users within a few hours. I was
very exciteduntil I played the game. Everything was timing out;essentially,
the puny virtual servers couldnt handle the load. I was beyond upset.
In retrospect, I should have planned for the possibility of going viral instead
of trying to save a few bucks. The game is now hosted on a dedicated
server and has no issues; unfortunately, it was too little, too late. Our chance
to take down a big name had passed. A positive aspect of this missed
opportunity is that I am able to pass on the valuable lesson I learned to
you today.

Tracking Trends and Producing Results

You need to keep an eye on your trends. As you start to see a rise in
downloads, you have to prepare yourself. Not all apps have servers and
databases, but that is just a minor part of the overall scheme. Before you
get too excited about the prospect of low-maintenance apps equaling
no responsibility, let me correct your thinking. With a large influx of users,
you are going to be bombarded with e-mails, Twitter and Facebook posts,
and publicity. To the inexperienced, this may sound like no big deal, but it
is super stressful and, at times, overwhelming. The added responsibilities
will test your time management skills. In addition to dealing with the
publicity and inquiries from reviewers, you will still need to interact with
your community in whatever way you can. Be sure to continue your
communications with any users asking questions via e-mail. If you neglect
this commitment to users, your app will not be popular for long. A key

CHAPTER 8: Plan to Scale, or Your App Will Fail

51

component of business longevity still applies: if you are able to keep your
users happy, your application will continue to trend upward. Once users feel
neglected, interest will wane, and your app will inevitably trend down.
Tracking trends is a requirement for any successful appreneur. Fortunately,
there are a variety of tools available for tracking necessary app data. Expect
a short-lived appreneur career if you think tracking trends consists only of
logging in and downloading sales. These are some of the categories you
need to track as an appreneur:
Downloads/Sales: This is fairly self-explanatory. You need
to know how many people either purchased or downloaded
your app.
Ranking: This is the rank of your app in its respective
category. Rank is determined by the number of sales, or
downloads. These numbers will fluctuate daily. Keeping a
close eye on rank will help you know if any new changes
you have made are working in your favor.
Reviews: The review system is a bit flawed. Typically, happy
users dont leave reviews as often as unhappy users. If you
are getting bad reviews, take note of what the users are
saying. You will always have users who leave one-star
reviews saying, bad app or stupid app. Generally, these
are comments generated by competitors. You can always
submit these reviews to your respective App Store and
have them removed. To do this, simply contact Apple with
your apps name and app ID and ask that the review be
taken down. Apple is usually pretty good about dealing with
this issue. You should pay attention if you see a few one-star
reviews pointing out the same problem, and quickly address it.
Keyword search ranking: This is similar to download
ranking; however, it is purely based on how your app
stacks up for searched terms. The majority of the users
who download your app will have searched for a particular
term to find it. Knowing what number you come up for a
search term is valuable information (for information on how
to effectively track this data, see the next section, Tools for
Tracking Keyword Rankings).
Featured in the App Store: If your app is doing well, there
is a chance it will come up in the Whats Hot or New
and Noteworthy section of the App Store. This is a major
accomplishment, so if your app gets one of these mentions,
take a second to congratulate yourself. Usually, you will only
be able to track this manually for your country of residence.

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CHAPTER 8: Plan to Scale, or Your App Will Fail

Remember, the App Store reaches more than 150 countries,

each of which has its own rankings and featured sections.
Featured on the web: Many web sites feature and review
apps. In the event that, fortuitously, your app becomes
featured on one of these sites, you will see a sizable jump
in downloads. You need to know if and when your app has
been featured on these sites. From what I have seen, there
is not a better tool for this than a simple Google search.
Search your apps name, and run through approximately
four pages of results. If your app is not listed, then you know
it has not yet been featured.
The sheer magnitude of app data available makes tracking it all manually
impossible. Lucky for you, my appreneur experiences have led me to
discover some awesome tools to help you do this. Best of all, most of them
are free, and the ones that are not are well worth the investment.

Tools for Tracking Downloads

Here is a listing of some of the best tools available for tracking downloads.

AppViz (www.ideaswarm.com/AppViz2.html)
AppViz is a tool I have been using since I first started selling apps. It is a
powerhouse for collecting data, providing you with the following results:
Rankings
Downloads/Sales
Reviews
AppViz keeps all your data in one place and allows you to create graphs.
Especially helpful for tax purposes, it quickly figures out weekly, monthly, or
yearly sales. Moreover, this app can track your rankings in any country that has
the App Store and even translates your out-of-country reviews. At the time of
this books printing, AppViz will cost $49, but, like I said, it is worth every penny.

Distimo (www.distimo.com)
Distimo is an easy-to-use tool for tracking your daily, weekly, and monthly
sales. All you have to do is register for an account on its web site, and you
will receive an e-mail each morning containing your sales numbers. The
interface is also really approachable. I highly recommendthis tool, which,
unlike some, is completely free and takes no time to set up and use.

CHAPTER 8: Plan to Scale, or Your App Will Fail

53

AppSales Mobile (github.com/omz/AppSales-Mobile)

AppSales-Mobile is an open-source app that you can download and install
on your device. You will need the most recent copy of Xcode to make this
work. Most developers will handle installation if you request it. This app is
probably one of my favorites. It is super easy to use and lightning fast. You
can track downloads/sales by country or app. Furthermore, just like AppViz,
AppSales-Mobile collects all your reviews and translates them and allows
you to view daily, weekly, and monthly sales. Another cool feature is the data
display: color-coded bar graphs for each individual app (again, like AppViz).
Color coding provides you with a clear visual of which of your apps are
selling well and which are not. AppSales-Mobile is also free!

Tools for Tracking App Store Ranking

Next are tools you can use to track App Store ranking.

App Annie (www.appannie.com)

App Annie is one of my favorite tools for tracking app ranking. This app
offers a wealth of useful data. One of the many powers of App Annie is
the ability to track competitors rankings. The site is very simple to use;
just search by app or publisher name, and you can see current and past
rankings. With its valuable data and ease of navigation, it is hard to believe
this app is free!

MajicRank (majicjungle.com/majicrank.html)
MajicRank is a unique app, as it is the only one that allows you to track
real-time current ranking. Most sites, such as App Annie, have a lag time of
appproximately 24 hours. You can also track competitors, but you have to
have their app ID. To obtain the app ID, simply run a Google search for the
apps name, and copy the ID from the App Store URL. For example, here is
the URL for one of my apps:
http://itunes.apple.com/us/app/caption-me/id528817199?mt=8

The highlighted portion is the app ID. Plug this into MajicRank, and you now
have the real-time ranking for my app. An added bonus is that MajicRank is
free to download and use!

Tools for Tracking Keyword Rankings

Following are great tools for tracking your keyword rankings.

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CHAPTER 8: Plan to Scale, or Your App Will Fail

AppCodes (http://www.appcod.es)
A recent discovery, AppCodes has definitely shown to be a helpful
data-tracking source. This web site offers some of the best search engine
optimization available for apps. AppCodes lets you track your competitors
keywords, which is very important information to have. The site also has
some unique features for keyword optimizing, allowing you to test keywords
for your apps ranking. Because keywords are so integral to app sales, this
feature gives you invaluable information, which could be a deciding factor in
your apps success. AppCodes was only $14.95 a month in mid-2013, and
for the services it provides, it is a bargain.

Search Man SEO (www.searchman.com)

Another valuable tool is Search Man SEO. If you use it in combination
withAppCodes, you will be able to dominate the keyword market.
Search Man tracks all the keyword rankings for you and any competitors
you choose. As you will discover, keyword rankings are similar to download
rankings, in that they fluctuate greatly. Knowing where you stand each
day is crucial, from a marketing standpoint. You will receive a user-friendly
e-mail from Search Man each day around lunchtime. The e-mail update will
contain detailed information regarding your apps keywords. Preemptively,
Search Man also tracks new, potential competitors for you, based on
keywords. At the time of this writing, Search Man SEO costs $20 a month
per app. To ensure your satisfaction, a trial version is also offered so that
you can become comfortable with the product before buying.

Parting Thoughts
Of all the data responsibilities, tracking keywords is probably the most tedious.
It doesnt help that Apple is notorious for changing the search algorithm, with
no advance warning. Consequently, I try to check my keywords daily to make
sure nothing has happened that could cause my apps not to show up in the
rankings. The moment I notice an apps drop in rankings, I respond by either
advertising more to push it back up or choosing a new keyword. Remember,
if users cannot find your app, they cannot download it.
The sheer number of tools available for data tracking might seem
overwhelming. You will probably ask yourself, Which should I use?
The answer is all of them. There is no one tool that does everything.
Each one discussed here provides something of use that the others do not.
Use them all in harmony, and you will be satisfied with the results.
The next topic of interest to a successful appreneur is the life cycle of apps.
This is discussed in Chapter 9.

Chapter

The Life Cycles of Apps

Much like a living entity, apps have an expiration date for success, or what I
like to refer to as a life cycle. No two apps have the same life cycle. With all
the information presented to this point, it should be easy for you to predict
where you app is in terms of its life cycle. A flawed assumption some people
make is that if you create a popular app, it will sell at the top forever. This is
not true even with the top-selling games. Angry Birds serves as an excellent
example. When this app is trending downward, the experienced developers
make a new iteration of the game or launch a major update to counteract
the downward trend. If they did not make these changes, in all likelihood,
the game wouldnt even be in the top 200 today. Not all apps have the same
time frame when it comes to cycles, but they all generally trend the same.
Understanding trends requires that you be aware of the App Stores three
distinct seasons: preholiday (SeptemberNovember); holiday, or peak
(December-February); and slow (MarchAugust). An unwise appreneur will
only look at sales numbers (the amount of money he or she is making) to
determine trends and cycles, but it is imperative that you consider all the
information at hand to make the best decisions for your app.

Tracking the Right Data

The only effective way to track your apps trends and life cycle is by App
Store ranking. The reason is that during the different app seasons, the
volume of apps varies greatly. For example, if you have a top 200 app
during the holiday season, you will see approximately 750 paid downloads.
Conversely, during the slow season this number can be as low as 500. If you
were tracking your app purely on revenue, you might logically assume your
app is trending down; however, it is not. Keeping a close eye on ranking
provides the most accurate data when tracking an apps cycles.

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CHAPTER 9: The Life Cycles of Apps

App Launch Life Cycle

When you first release your app, you will likely trend upward that entire
week. Your app is automatically featured in the App Stores New category
for the first few days. In addition, many third-party sites will scrape (pull
data) from the App Store for apps to showcase; therefore, your app will
likely show up in some Google searches as well. Statistically, your new
release trend will reach an apex four to five days after your app has been
released. What you do next will determine if you continue to stay at the top
or plummet to the bottom.

Postlaunch Life Cycle

If you have applied all the strategies covered thus far, your app is doing well.
You are reading your reviews and tracking rankings and other important
data. To remain viable in the app market, it is now time to start thinking
about how you can add or improve features. Leonardo da Vinci said, Art is
never finished, only abandoned. This is my favorite quote for underlining
the mistake amateur appreneurs habitually make with their first few apps:
they abandon them. They think that just because the app is launched in the
App Store and is doing well, they can rest on their proverbial laurels, getting
paid forever. Unfortunately, the notion of the App Store as an easy,
get-rich-quick road to riches is a misconception that has been perpetuated
by many authors and bloggers. The truth is quite the opposite; being an
appreneur is a job like any other. If you start a successful soft drink company
and never go to work after the first day, how long do you think the company
will keep making a profit? I tested this theory with an app not long ago.
A few days after the app ranked among the App Stores top 200 overall,
I decided to see how long I could ride the wave. In January 2012 the app
was generating more than $1,000 a day. I didnt maintain contact with my
community of users or add any updates. Not surprisingly, I was correct in
my hypothesis. After only two months, sales plummeted. In the summer
of 2012, the app, which is still in version one, made a paltry $8. Simply
put, if you do not continue to work with your apps and customers, you will
eventually trend down into the dirt. To avoid this scenario, take note of the
secrets and tips I have learned.

Updating Apps to Keep Users Engaged

Users love updates (this should be imprinted into your brain by now).
Updates are the single-best way of keeping your application from trending
downward. Types of updates can vary from huge new features to simple bug
fixes. As long as you are doing your best to keep your users happy, they will

CHAPTER 9: The Life Cycles of Apps

57

continue to download and use the app. If you let your app become stagnant
and boring, your users will leave and never come back. Usually, when users
become bored with an app, they delete it. To avoid deletion disaster, you
must keep your current users using the app. There are a few ways to do this:
Push notifications: Push notifications are messages sent
to your users from the app. The cool thing about push
notifications is that they have close to a 100 percent open
rate. Because they pop up on the main screen of a users
phone, they are difficult to ignore. Use these sparingly; the
last thing you want to do is spam your users. I generally
send these notifications when I add a new update.
E-mail notifications: If you have a good e-mail list for your
users, you can send the same types of notifications via
e-mail. Unlike push notifications, e-mails are not opened
as often; in addition, you may anger some users, who view
these notifications as junk mail. I only use this method if
I dont have an app with push notifications.
Social network pages: Make sure to chime in on your
social network pages. Let your users know you are listening
and working on the app. Feel free to use your own app
and post some of your own content. Users love to see the
developer using the app.
Facebook/Twitter posts: Be sure to use the social media
outlets associated with your app. These are fantastic ways
to interact with your users. I usually make posts when a new
feature has gone into development, when it is submitted to
the App Store, and when the update is live for download.
This will keep your users up-to-date and, in a sense, include
them in the development process.

Generating New Sales

In addition to maintaining your current user base, any wise business plan
will also include new customer generation. To generate new sales, you
should continue to advertise (see Chapter 6). Advertising is not a one-time
deal; to keep your app business fresh, make sure you always have ads,
videos, and promotions going live. Most of these ads will run for an allotted
time, so make sure you dont let them all expire at once. Inexperienced
appreneurs typically make the mistake of only running one ad campaign.
Can you imagine what would happen if major companies did this? My guess
is that they wouldnt be major companies for long. Continue to find new and

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CHAPTER 9: The Life Cycles of Apps

innovative ways to advertise your application, and you will always be ahead
of your competition. As the App Store continues to grow, those who can
effectively advertise and market will come out on top.
Seasonal iterations of apps can be a huge sales boost. Observe the App
Store around Christmastime; often, the most popular apps have a Christmas
version. Typically, only the big companies do this, but more independent
appreneurs need to be informed. Adding a new version of your app with a
Christmas or Halloween theme to it can drive up your sales exponentially.
Angry Birds did this with its Angry Birds seasonal game. It is the same
game, with a few new levels and a Christmas theme. The seasonal version
also turned a considerable profit; users did not mind paying again for
basically the same app.
Partnering with affiliates can also be a good way to make a new version
of the app. Imangi Studios, the creators of Temple Run, provides an
excellent example to follow. Imagini created a similar version of the game
that featured characters from the movie Brave. The original game had been
trending down for the past few months; however, as soon as the Brave
movie version hit the store, Temple Run was back at the top.
Sometimes, you need to think creatively to prevent your apps from trending
down. There is no one way to accomplish this, but by using all these tricks,
you will have made a great effort. Remember, if you abandon your app,
your users will abandon you.

Chapter

10

Selling the Rights

and Cashing Out
You have undoubtedly heard of people selling successful businesses,
making millions, and instantly retiring. Apps are no different. With the market
growing the way it is, investors are always looking for new apps to buy.
Because the app market is so young, buyers will pay top dollar for rights.
The times I have sold the rights to apps have been fortunate circumstances
that netted me lucrative profits. When I have wanted to take on a new
project or adventure, selling a particular apps rights has provided me with
both the capital and the freedom to pursue other options. No matter the
app, there is always a buyer out there. I know some appreneurs who have
retired at a very young age simply by selling the rights to their app at the
perfect time.
Because of this emergence of a new market from the buying and selling of
the app rights, it is important that you know the process and expectations.
In the event that a buyer wants to procure the rights to your app, these will
include, but are not limited to, source code, user base, future revenues, and
development team. Think of someones purchasing the rights to your app
like buying a web site domain. Basically, once the transaction is complete,
the app is no longer yours. You may wonder why you would ever want to
give up your creative work, but you will learn that once the app bug bites,
it is hard to limit your app creation. Likely, you will start with one app and
then quickly make another. The creative process will continue, and before
you know it, you will have a plethora of apps. Having multiple apps is a great
business model for sustained revenue, but it is also very time-consuming
and stressful. The purpose of this book is to guide you in making an app
successful. So, can you imagine carrying out all of the steps Ive outlined for
you for all your apps? Hopefully, your answer was yes, but once you reach
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CHAPTER 10: Selling the Rights and Cashing Out

10 to 15 apps, this is simply unfeasible. Hence, selling the rights to an app

is a wise business move that will free up some time and make some quick
cash. Until recently, only large companies sold app rights, but thanks to the
appearance of some very good web sites that act as brokers, this is now a
possibility for all appreneurs. I have sold a few individual apps as well as my
entire game guide company.
You should set a goal and then proceed accordingly when trying to sell
rights. Decide whether you want to sell one app, an entire series, or a
developer account. If you are trying to sell individual apps, your best option
is the web site Sellmyapplication (www.sellmyapplication.com). I have had
some great results with Sellmyapplication, which charges a very reasonable
fee to post an ad for your app on its site. One of the key benefits of the site
is the size of its community. I have listed quite a few apps on the site, and
I usually received inquiries within a day. Furthermore, the seller also gets
to interact directly with the buyer, eliminating the need for a go-between
and saving you money. This direct buy system works well because no one
knows his or her app better than the person selling it. I have not found a
better platform for selling an app. Sellmyapplication also has a great market
for buying preexisting apps and code snippets. I have purchased, for an
extremely reasonable price, some awesome code snippets that I was able to
use in my own apps.

Selling the Rights at the Right Time

If you do decide to sell your app or app company, you need to make sure
it is a decision you will not regret. Usually, appreneurs who sell their rights
do so when they want to move on to a new series or project and do not
have time to maintain their current apps as well. Finding buyers on your
own is almost impossible and is more of a headache than it is worth. When
selling my first company, I initially tried to take on the task of finding buyers
singlehandedly. It was a daunting and frustrating process that could have
been made easier had I known about the team at AppBusinessBrokers
(www.appbusinessbrokers.com). I have found this group to be knowledgeable
and professional. What they do is gather all the information a potential buyer
of your app/app company will ask and serve as a broker. They have a wide
client base and can help you sell your apps to investors in a timely manner.
In addition to their large client base and extensive knowledge of the market,
they are also accessible; they even take the time to talk to you on the phone
before beginning the process. This is the kind of customer service that
makes selling apps less of a hassle.

CHAPTER 10: Selling the Rights and Cashing Out

61

Buying Preestablished Apps

As an appreneur, you may also be approached to buy an app. Buying apps
is generally a business risk, as the majority of apps for sale are those that
are trending down despite the efforts of the seller. For the appreneur with a
knack for generating sales, what would otherwise be a business risk may be
a business opportunity. Before buying, or even considering buying, an app,
ask yourself a few simple questions:
How well established is this app?
If the app has been around for a while, has been ranked fairly consistently,
and shows up high in search results, then buying the app may be a
great investment. If the apps ranking is way down from its initial release
(remember to use AppAnnie to track this data), then you are taking a huge
risk. Buying the latter type of app is equivalent to salvaging a leaky boat
while it is in the water. Sure, you could try to plug the holes and do repairs,
but it may be sinking so fast that any patch efforts are in vain. The most
important factor to consider when buying an app is how well its keywords
rank. If an app has established keywords and shows up high in the rankings,
then buying the app could be a great move.
How much is the app selling for?
Price will determine if buying the app is more logical than developing,
or having someone develop, something similar. Most studios can give
very accurate quotes on what it would cost to build an app like one that is
already in the App Store. Remember, the only thing you cannot buy when
having an app developed is rankings. If the app is ranked well, then do not
bother trying to compete and develop your own version.
Do the users like the app?
A cause for concern is if the application is flooded with bad reviews. In that
case, you need to be very wary. Recently, some appreneurs developed fake
fingerprint scanners, ghost finders, and lie detectors. These apps are just
scams, and some poor person downloaded the app, thinking it did these
things. Do not buy theseever! Apple is cracking down on fraudulent apps
and removing them from the App Store; likewise, the company is blocking
new ones. You will be disappointed when you spend thousands for this
app, only to have it taken down by Apple or not approved at all. If a seller
is willing to scam users, then that person will have no quams about
scamming you.

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CHAPTER 10: Selling the Rights and Cashing Out

Selling Apps That Have Never Been Listed in

the App Store
In addition to buying and selling preexisting apps, another app opportunity
may present itself: flipping apps. Flipping is a term that originated in the
dot-com era and denotes the buying or building of a web site in order to
immediately sell it. Although flipping has not yet gained popularity in the
app world, it is an inevitable eventuality. Already there are a few appreneurs
who make apps similar to ones that are popular in the App Store and who
sell them without ever uploading them to the store. This is a huge gamble;
you will not know how well the app has done. You wont be able to know
if Apple will accept the app or if it will sell as you anticipate. Flipped apps
are generally less expensive than preestablished apps because of the risk
involved. I personally have never flipped an app. It is too much of a risk for
me. I have bought and sold plenty of apps, but only when I know what to
expect. If flipping catches on, then I will adjust my business model, but until
then I will stay away from this practice.
Now, I will reveal with hesitancy a well-kept secret of mine. Because
I decided to hold back nothing in this book, I will tell you how I maximize
profit by selling an apps rights at the perfect time. If you are able to
successfully follow the trends of your apps and anticipate what will happen
well before it does, you can make a considerable profit by selling the rights
before an app begins to trend down. One consideration of buyers is how the
app is trending. They will usually only be interested in the app if it is trending
up or flat. If your app is trending down, and you sell it, you will receive fewer
offers and less profit. The previous chapters painstakingly described the
importance of trend data. To be a successful appreneur, it is imperative
that you learn how to read this information. Once you become adept at
data analysis, you can make serious money in markets people didnt even
know existed. When I foresee that an app is about to trend down, I put it up
for sale at a high price. Ideally, you will have a few very interested buyers
soon after, because the app is doing well. By using this strategy, you are
maximizing two things: time and money. If you do not have to worry about
remarketing, repromoting, and readvertising an app, then you will have more
time to devote in other places. I have found that the best time to sell the
rights to an app is in late February, when holiday season sales begin to slow.
Typically, your app will trend up during the holiday season; it will likely come
down in the spring. If you are able to sell your apps before they trend down,
you will make money, and fast. This template, of course, will not work with
every app, but it is a good starting point.

CHAPTER 10: Selling the Rights and Cashing Out

63

This chapter is probably one of the most complicated in the book. There are
many risks associated with buying and selling apps, risks not advisable for
the amateur appreneur. I would highly recommend getting some experience
under your belt before attempting buying or selling. The app buying and
selling world is comparable to the stock market. Do it right, and you can
make a fortune. Do it wrong, and you will lose your fortunefast.

Chapter

11

Keeping Piracy to
a Minimum
Over the last few years, piracy has become a major problem in the App
Store. In 2011, for instance, I had twice as many apps pirated as sold. You
will hear a lot of naive appreneurs say, Piracy is not a big deal; people who
pirate would not have bought your app anyway. This is just flat-out wrong.
Consider the following illustration. A user pirates the paid version of your
app. You are making nothing from the user. Following the logic that this
person would never have paid for the app allows him or her to download
your free, ad-backed, version. You will now generate revenue from the user
by serving him or her ads. Users who pirate apps are much less likely to
buy them; however, there are plenty of users who will download a free app
with ads. If you have an application that has server costs, make sure you
do something to prevent piracy, or pirates will eat up a ton of those costs.
Believe me, it is a dismal feeling when you search for your apps name,
followed by dot-ipa, only to see it all over the Internet in every cracked app
store. You basically have two options: manually send each cracked app
store and hosting site Digital Millennium Copyright Act (DMCA) notificaton,
instructing that the app be taken down, or prevent piracy from occurring
in the first place. My first reaction was to serve DMCA paperwork to each
offender. This was the most time-consuming and tedious task I have ever
taken on. In the end, I gave up on trying to prevent piracy on my own. I was
approached by the company AntiPi (www.antipi.net), which claimed it could
prevent piracy. I was skeptical, to say the least. I decided it would be worth
a try, though, and I was very happy with the results. This company literally
takes down all your pirated apps from the cracked app stores. The AntiPi
software inserts within the pirated versions of the apps a legal message,
followed by only one, clickable button: Buy the app in the App Store.
65

66

CHAPTER 11: Keeping Piracy to a Minimum

This was exactly what I was looking fora way of converting pirated apps
to sales. Obviously, not every person who pirated the app is going to buy it;
however, I have noticed that approximately 1 in 50 does. Although this
may sound like a relatively low conversion rate, these numbers can add up
drastically when you consider the thousands of copies being downloaded
a day.
Some people tend to minimize the issue and contend that pirating actually
serves as a form of free advertisement. I disagree wholeheartedly with that
notion. First, any time your app is pirated, someone has gotten it for free.
Second, people who pirate apps are proud of what they do and will often
brag about it in your app to other users. I had an app that had a lobby chat
room that allowed users to chat interactively. I noticed that once my app
became readily available in the cracked app stores, hundreds of people in
my chat room were boasting about how they got the app for free. As you
can imagine, the users who paid for my app were quite upset with this.
Third, the people who were using the pirated version of my app were also
using features that required server calls, which cost money. Finally, the
increasing ease with which pirates are able to jailbreak is worrying. Recently,
jailbroken devices have been enabled to download in-app purchases for
free. Many developers took the route of adding in-app purchases in their
apps as a way of preventing piracy. This no longer is a viable option. The
only in-app purchases that cannot be cracked are those that are server
validated, so if you decide to use in-app purchases to fend off piracy, make
sure they have this feature.
No matter how big or small your app, piracy will always be a problem, and
that is why you should do your best to prevent it. Again, I highly recommend
AntiPi for this. The company charges very reasonable rates and takes care
of all of the grunt work. You also will get a monthly report showing how
many copies of your app were kept from the pirates. My first month, more
than 150,000 copies were prevented from being pirated. Prevention did not
result in 150,000 extra sales, but that is still a lot of people who wont be
using my app for free and costing me money and headaches.
Piracy has the ability to crush industries (look at what Napster did to the
music industry). Whatever the size of your app, it is only a matter of time
until it gets cracked. Heed my advice, and take action to circumvent this.

Chapter

12

Evolving with the

App Store
Here, Randal Higgins, the founder of Touchmint (www.touchmint.com), shares
his story, highlighting, among many things, the importance of adaptability for
an appreneur:

My path to developing started approximately a year after

college. I graduated with degrees in computer information
systems and computer network administration. During college
I took a few programming classes, such as Java and Flash, but
I was far from good at them. During school I always wanted to
develop iPhone apps, but I did not have a Mac and could not
justify the cost at the time. Not long after I graduated, I moved
to Arizona, sold some electronics and online game items on
Ebay and Craigslist, and, finally, bought a MacBook Pro.
Being a Windows person for most of my life, it was a little
hard to figure out the file system and a few other things on
the Mac operating system. I began learning Objective-C by
reading Programming in Objective-C, by Stephen G. Kochan,
through Safari Books Online. The book was a great starter,
and the Safari Books membership is a must; the site has
every programming book you can think of. After reading
Programming in Objective-C, I started Head First iPhone
and iPad Development. Head First is a great hands-on book.
It made Xcode very easy to understand.

67

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CHAPTER 12: Evolving with the App Store

As I worked through the Head First book, I was thinking about

an app I wanted to develop. I have always been a huge fan
of playing sports, especially enjoying the statistics involved.
I play quite a bit of softball and had been trying to keep my
stats, but all the programs out there were lacking. I decided
that my first app would be a baseball/softball stat-tracking
app. Because I had already downloaded all the baseball stat
apps in the App Store, I knew what worked and didnt work.
I analyzed user reviews and learned what others liked and
didnt like. I cannot stress enough how important it is to know
your market and competition. Not everyones goal is to make
money, but if you do plan on earning some cash, you had
better know the market and your competition.
Nowadays, I see so many talented people pouring time into
an app that is likely to fail because the app market is flooded
with similar apps. Like I said, I am nowhere near to being a
good programmer, but I would argue that its more important
to know the market.
When I built my first app, Baseball Stats Tracker Touch,
I created it as a framework for other apps. Although it took me
approximately five to seven months to learn Xcode and to build
that first app, it was worth the investment of time. I have built
seven other apps on that framework in just four months. All
but two have reached at least the top 200 in sports. Baseball
Stats Tracker Touch reached number 10 overall in sports and
grossed more than $6,000 in its first six months.
Approximately halfway through development, I found a site,
iPhoneDevSDK (www.iphonedevsdk.com), that really helped
out a ton. To this day, my favorite online forum is its Business
and Marketing Forums. The community is great, and if you
want to learn the ins and outs of the App Store, that is the
place to go.
Just because your app is released does not mean it is done.
A web site is a must, something that I learned the hard way.
I originally built my web site, Touchmint (www.touchmint.com),
on Google Sites, which was great because it is free, but my
site lacked customization, causing me to look unprofessional.
I recently moved to Namecheap, where I have a Wordpress
theme; it is just as easy as Google but looks a lot better.

CHAPTER 12: Evolving with the App Store

69

Ongoing communication is another key to being successful.

I make a habit of responding to questions and complaints
within an hour, if possible. It blew my mind that users had
never heard back from developers, and the users could not
believe that I was writing to them, and so quickly. If you really
want to keep good reviews, put a support button in your app
so that people can get support right from it. I also like to give
out promotions to my other available apps when someone
takes the time to report a bug.
Updating and design are very important factors as well. When
your app is targeted at kids, it had better look appealing, and
the icon had better be cool. Updates are also great, not only
for adding new features, but also for reminding your users that
they own your app. When they are reminded, they will spread
the word.
Overall, I dont think there is a clearly defined path to success.
Rather, success results from a combination of many factors.
There is a reason why people who know Objective-C and
Xcode inside and out have never had a successful app to
date. To be successful in the App Store, you need to know
a little of everything. Also important is the ability to adjust to
App Store changes very fast. Apple will change its system,
and it is your job as a developer to figure out how to adjust
better than others do.
The App Store is evolving every day. It is your job as an appreneur to
evolve with it, as Randal explains in his testimonial. Keeping up with the
App Stores changes will prepare you for navigating the app market and
making informed appreneur decisions. I have found that the best way to
keep updated is by having a good community. As an active member of the
forums on iPhoneDevSDK (www.iphonedevsdk.com), I connect with talented
developers and appreneurs, including several of the people whose stories
I share in this book. Appreneurs who are willing to learn are going to be
much more successful than those who are inflexible. In this profession,
I have found that if you ask for help, people will be happy to assist you.
In particular, the iPhoneDevSDK forums have given me information on
everything App Storerelated. There are thousands of threads available that
can answer any type of app-related question. My primary use for the forums
is to gather other developers opinions about my ideas. If you are unsure as
to why your app isnt meeting your expectations, simply ask the community.
They are fairly blunt, but criticism is what you may need to improve your app.

70

CHAPTER 12: Evolving with the App Store

As you are nearing the conclusion of this book, you should now be equipped
to successfully handle every aspect of creating and selling an app. Once
you have mastered the tips and techniques I have provided, you will have
no trouble adapting to the ever-changing App Store. Evolving with the
App Store can be as simple as switching your keywords to optimize a new
algorithm the App Store deploys (as with the drastic changes in 2012) or
as complex as completely changing your application line to better suit new
users. One year, photography apps may be hot, whereas the next year
they may not be. You need to be able to transform products as new market
trends emerge. Among the many lessons I have learned from the App
Storeis not to bank on one app forever. If you examine closely how the top
independent developers have made money, it becomes apparent that they
have a wide array of apps, not just one. Going with one app is a gamble, a
risky business move. If a competitor makes a better app than the one you
have on offer, you are in a very bad position.
Technology is always changing, and you must constantly be thinking of new
and innovative ways to incorporate these changes in your app. One story
that represents innovation is that of MobGens Alert Tone Creator. MobGen
expertly timed his super simple app, which came out with the release of iOS 5.
This appreneur did his research and knew that Apple would be allowing
custom text tones in iOS 5. Therefore, he integrated this new technology
into an easy-to-use app, which became wildly popular. In another example,
a few appreneurs made apps that optimized photos for Facebooks timeline
feature. Once again, these appreneurs knew of a new technology and were
able to integrate it at the right time and achieve outstanding results.
Timing is everything when it comes to adding new technologies to apps.
Generally, if youre not one of the first to do it, then you will not make much
money. I like to keep up with current events just for this reason. You dont
have to survey technology companies in order to invent new and innovative
apps. If you know of something that is hot, or popular, make an app for it.
Apples App Store slogan is Theres an app for that. My favorite part of
being an appreneur is the personal and creative freedom I have. Not many
jobs afford such freedom. As an appreneur, I am able to work doing what
I want, when I want.
I am thankful every day I have the opportunity to be an appreneur. You will
come to find out how truly awesome the job is. You are on the frontlines
of the most cutting-edge technology our age has seen. Mobile software
is not a fad; it is a new market. Since the invention of the smartphone and
tablet, software has been moving from computers to mobile devices, a
transition that will only continue through the years. Are you ready to seize
the opportunity?

Index
A
Advertising
ad agencies, 41
advertising methods, 45
app-to-app advertising, 47
banner ads, 44
cost-per-click ads, 41
cross promoting user bases, 48
Facebook sidebar ad model, 41
hashtags, 43
keyword rankings tracking, 53
popular app review
web site, 44
social networks, 4243
using other apps, 47
YouTube, 46
Angry Birds, 10
AppAdvice, 5
App Annie tool, 53
AppCodes, 38, 54
Apples App Store slogan, 70
AppSales-Mobile, 53
Apps development
contracts, 9
description writing, 14
development studio, 8
face-to-face meetings, 8
icon designing, 13
keywords, 12
local developers, 8
local studios, 8
NDA, 8
outsourcing, 9
overseas developers, 8
pros and cons, 7
remote development, 8

screenshots, 15
SDK, 7
title, 10
App Store
AppAdvice, 5
Apple, 45
app reviews, 3
best-selling apps, 37
breakthrough apps, 39
competitors app, 3
improved features
implementation, 38
interactive wildlife guide, 40
iPhone app, 3, 6
nature, 3
Photo 365, 35
piracy, 65
rankings, 37, 53
seasonal apps, 38
structure, 37
top-selling apps, 37
App-to-app advertising, 47
AppViz tool, 52

B, C
Baseball/softball stat-tracking
app, 68
Brass Monkeigh apps
customer feedback and
updation, 21
customer satisfaction, 22
Kill Death Ratio Improvement
Tool, 20
kill-to-death ratio, 1920
market opportunity, 22
Broad-spectrum advertising, 24
71

72

Index

Distimo tool, 52
Downloads tracking tool, 52

MacBook, 20
MajicRank tool, 53
Managing users
Bug report option, 32
data collection, 31
Feature request option, 32
Rate the app option, 34
social network, 34
Tell a friend option, 33
user base, 31
MobGens Alert Tone Creator, 70

E
e-book, 4

F
Freemiums, 27

G
Great AppAwesome
Fun App, 11
Gun Range app, 12

N, O
New and Noteworthy apps, 4
Niche app, 23
Nondisclosure agreement (NDA), 8

Halo 1, 3

P, Q

I, J

Photo 365, 35
Photo Caption, 10
Photography apps, 70

Idea 2 App Store, 2, 8

Instagram app, 29, 36
iPhone app, 3, 6
iPhoneDevSDK, 6869
iTunes App Store, 20

K
Kill Death Ratio Improvement
Tool, 20

L
Life cycle
app launch life cycle, 56
e-mail notifications, 57
Facebook/Twitter posts, 57
new sales generation, 57
postlaunch life cycle, 56
push notifications, 57
right data tracking, 55
social network pages, 57

R
Revenue generation
ads and in-app-purchase-backed
versions, 29
app purchases, 27
from free apps, 28
full-screen ad, 29
niche markets, 30
paid-only version, 30
paid version upgrade, 29
premium features, 30
Rights, selling
best time, 62
brokers, 60
buying preestablished apps, 61
data analysis, 62
development team, 59
flipping apps, 62

Index

future revenues, 59
goal setting, 60
individual apps, 60
right time, 60
Sellmyapplication, 60
source code, 59
trending, 62
user base, 59

S
Search Man SEO, 54
Seasonal apps, 38
Secret Happy Hour app, 42

T, U
Temple Run app, 28
Touchmint, 68
Trends tracking, 50

V, W, X, Y
Viral apps, 49

Z
Zynga Poker app, 27

73

Appreneur
Secrets to Success in the
App Store

Taylor Pierce

Appreneur: Secrets to Success in the App Store

Copyright 2013 by Taylor Pierce
his work is subject to copyright. All rights are reserved by the Publisher, whether the whole
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or by similar or dissimilar methodology now known or hereafter developed. Exempted from
this legal reservation are brief excerpts in connection with reviews or scholarly analysis or
material supplied speciically for the purpose of being entered and executed on a computer
system, for exclusive use by the purchaser of the work. Duplication of this publication or parts
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Permissions for use may be obtained through RightsLink at the Copyright Clearance Center.
Violations are liable to prosecution under the respective Copyright Law.
ISBN-13 (pbk): 978-1-4302-6475-0
ISBN-13 (electronic): 978-1-4302-6476-7
Trademarked names, logos, and images may appear in this book. Rather than use a trademark
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he use in this publication of trade names, trademarks, service marks, and similar terms, even
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While the advice and information in this book are believed to be true and accurate at the
date of publication, neither the authors nor the editors nor the publisher can accept any legal
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books source code, go to www.apress.com/source-code/.

I dedicate this book to my parents, Bobby and Gina Pierce. From a very
young age, you taught me that hard work and dedication would take me
far in life. You have supported me through all the ups and downs
I have had. I also want to dedicate this book to my girlfriend,
Jennifer Henley. You have helped me further myself in
more ways than I can name; without you, I would have
never written this book.

iii

Contents
About the Author .............................................................................. xi
Introduction .................................................................................... xiii
Chapter 1: Staring at the Bottom and Rising to the Top ................. 1
Chapter 2: Choosing the Right Development Option ....................... 7
Developing Quality Apps ......................................................................... 7
Picking the Right Title ........................................................................... 10
Choosing Quality Keywords ................................................................... 12
Designing a Quality App Icon ................................................................. 14
Writing an Engaging App Description .................................................... 15
Creating Enticing Screenshots .............................................................. 16
Chapter 3: Dont Compete in a Market, Create It .......................... 19
Picking the Right App to Develop .......................................................... 23
The Power of Niche and Specialty Apps ................................................ 24
Chapter 4: Generating Revenue from Various Business Models... 27
Making Money from Free Apps ............................................................. 28
Choosing the Right Business Model ...................................................... 29

vii

viii

Contents

Chapter 5: Managing Users Today for Success Tomorrow ........... 31

Capturing the Right Data for the Right Results ..................................... 32
Social Network Dos and Donts ............................................................. 34
Chapter 6: Whats Hot and Whats Not .......................................... 37
Using the App Store to Make Apps ........................................................ 37
Tis the Season to Make Apps ............................................................... 38
A New Idea for a New Market ............................................................... 39
Chapter 7: Making the Most of Your Advertising Money .............. 41
Advertising Methods That Work............................................................. 45
The Power of YouTube ........................................................................... 46
App-to-App Advertising ......................................................................... 47
Advertising Your App in Other Apps ....................................................... 47
Cross Promoting User Bases ................................................................. 48
Chapter 8: Plan to Scale, or Your App Will Fail ............................. 49
Tracking Trends and Producing Results ................................................ 50
Tools for Tracking Downloads................................................................ 52
AppViz (www.ideaswarm.com/AppViz2.html) ........................................................ 52
Distimo (www.distimo.com) ................................................................................... 52
AppSales Mobile (github.com/omz/AppSales-Mobile) ............................................ 53

Tools for Tracking App Store Ranking .................................................... 53

App Annie (www.appannie.com)............................................................................. 53
MajicRank (majicjungle.com/majicrank.html) ....................................................... 53

Tools for Tracking Keyword Rankings.................................................... 53

AppCodes (http://www.appcod.es) ......................................................................... 54
Search Man SEO (www.searchman.com) ............................................................... 54
Parting Thoughts .................................................................................................... 54

Contents

ix

Chapter 9: The Life Cycles of Apps ............................................... 55

Tracking the Right Data ......................................................................... 55
App Launch Life Cycle ........................................................................... 56
Postlaunch Life Cycle ............................................................................ 56
Updating Apps to Keep Users Engaged ................................................. 56
Generating New Sales ........................................................................... 57
Chapter 10: Selling the Rights and Cashing Out ........................... 59
Selling the Rights at the Right Time ...................................................... 60
Buying Preestablished Apps .................................................................. 61
Selling Apps That Have Never Been Listed in the App Store ................. 62
Chapter 11: Keeping Piracy to a Minimum ................................... 65
Chapter 12: Evolving with the App Store ...................................... 67
Index ................................................................................................ 71

About the Author

Taylor Pierce has been developing apps for
the Apple App Store since 2009. In the summer
of 2010, Taylor was awarded an internship at
Apples headquarters, in Cupertino, California.
He has developed more than 60 apps, many of
which have ranked consistently among Apples
top 200. As the CEO and founder of the mobile
development studio Taylor Pierce Apps and
of Secret Happy Hour, Taylor has firsthand
knowledge of what makes apps marketable
and profitable. His studio deals with a wide
array of clients, from individuals to Fortune 500 companies. Taylors
understanding of clients needs, the specifics of app design, and the everchanging app market has allowed him to create a valuable reference tool
for the appreneur. The book was inspired by a desire to offer exceptional
consultation services; a wish to help his clientele obtain the knowledge
necessary to maximize their apps profitability. After noticing the vast
improvement in his clients capabilities, Taylor decided to share his secrets
to success in the App Store with the world at large.
www.taylorpierceapps.com
www.secrethappyhour.com
www.idea2appstore.com

xi