Today’s guest has more than a million downloads and is living comfortably off the apps that he built in his spare time. And you won’t believe how simple they are. You will discover the mistake that most app developers make (hint: market research), how he’s generating 99% of his revenue from banner ads and how an icon change dramatically dropped downloads.
The Importance of Market Research
Elliot is able to gain traction on his app through market research. Once he starts on an app, he would find out the 80% of what users are having problems on – the big thing that they need to have solved. In getting to this, he does a lot of research on the market that he is entering, who the players are, the problems that his users are having, etc. He chooses his market very, very carefully so that people are looking for it thereby he does not have to do a lot of advertising for it. It’s also about getting ratings very quickly so that in the first few days, it’ll bump it up in the App Store.
Generating Revenue from Banner Ads
Google AdMob is what works for Elliot in terms of revenue from ads and he only employs banner ads in his apps initially because, as a user, this is something that he can tolerate. He sets this up in his apps and gives an option to pay $.99 for users not to see them – this is the only difference between his free and paid versions. The temptation to make it annoying to squeeze more money from your users is always there but this will lead to losing users and bad reviews so you should look at the long term results.