The technology markets are growing exponentially with every passing day. Advancements in medicine, science, and everyday are impacted by advancements in this area. One need look no further than mobile devices to see just how much technology has changed daily living. Internet applications are constantly being updated and are available in a plethora of different areas. From health applications to exercise challenges to multiplayer games, these downloadable choices are changing the way that humans—and sometimes animals—approach seemingly common activities. No idea for an application seems too ridiculous or too farfetched. But, how does one turn their bright idea into something profitable?
1. Researching the Market
While mobile applications are available in virtually any area, some markets are more crowded than others. As aforementioned, diet apps are a dime a dozen, crowing the market space and making it more difficult to turn a profit. Ultimately, developers are going for per download dollars or advertisement. As such, a crowded marketspace—unless the idea is highly unique—can mean that making a profit is more than unlikely. It is near impossible. Therefore, those looking to turn their idea into a lucrative career choice need to make sure to research prior to development.
2. Innovation Matters
As aforementioned, there is no easy way to make money on an application. Some, however, have better luck than others. Part of this luck, though, comes from the innovation of their product. If a marketspace is crowded, it is important that the application is differentiated in some way from the others. It must be different enough that it offers something unique to the downloader. If not, it can get lost in the fray of gimmicky and highly marketed applications, even if they do not offer as much value to the consumer.
3. Marketing Costs
Before understanding how much an application can make, it is important to understand the costs that will inevitably go into developing the product. Web developers and development companies know that advertisement is important, but it is also costly. If you are developing on your own, marketing will matter. It is important to look for low cost—potentially viral—marketing strategies that will maximize exposure while minimizing costs. Understanding the threshold of financial investment can help to keep your company afloat during the initial development phases, though taking a loss is not unheard of for successful startups in the industry.
4. Development Costs
Of course, it goes nearly without saying that application development requires someone to actually develop the application. If you are experienced in this area, then it is likely that you will save cost in actually getting the application in a form that is ready for mass consumption. If you do not have this technical experience, however, there will be a cost in development. Depending on the nature and quality of the developer you choose, this can greatly impact your profitability on an app, as the initial investment can be a failing application’s highest financial mountain to climb. In essence, it is a risk that may or may not pay off, but is necessary to even get to the next level of potential profitability.
Ted is the founder of Gainko. He started his first P2P hyper-local Mobile Internet product in middle 2012, and first social commerce marketplace in 2014, working with a group of incredibly talent software developers.