Ortwin Gentz, seller of the app Where To? (the company’s name is FutureTap) today released some interesting numbers on his app business and its development since he purchased the app from tap tap tap about a year ago – his blog post was even picked up by Techcrunch.
Gentz bought the app for $70k and has so far made about $325k in gross sales, which leaves him with about $227k in sales after the Apple cut. Another interesting fact is that new versions and being featured by Apple actually seem to have caused a rather constant stream of sales, thus not the typical „few-weeks hit“.
In our opinion, the most interesting fact is that, just like we mentioned very early on in one of our blogposts, Gentz does not see that buying reach to increase app downloads is paying off for apps. Regarding any performance marketing, the calculation is very simple: pay less than you earn. But with regard to app revenues, click prices and available marketing inventory, so far, this only seems to work for very few apps.
So what bottom line do the FutureTap numbers leave us with? We think that on a general note regarding apps there are two things that need to change or that have to further develop in the future:
- Developers need more and better ways (channels) to market their app(s)
- Developers need more and different ways of monetizing existing users and traffic so that they can spend more on customer acquisition and sustain a profitable business
We see apprupt as a real alternative for developers to gain additional downloads without the usual marketing risk and without overpaying for customer acquisition – and we will keep improving and constantly work on the above named points.