How to get started making your first app, how to make sure your customers want your app, and how to make money making an app

First off, reality check.

Very few apps make real—if any—money. There are two key reasons for this: 

1.   Competition: Tens of thousands of apps have been created and more are released daily. Working through the muddle of options and being noticed is difficult. 

2.   Price: The majority of apps are available for free, and many are them are quite useful. This has made it increasingly difficult to get customers to pay for an app. And even if you sell an app, your marketplace will receive a commission on each sale. That means you need to sell a ton of product to earn real money. You should absolutely think twice before spending substantial cash creating an app, because recouping your investment is far from a sure thing.

But if you are ready and committed:

First, you must be clear about what app you’d like to create. Ideally, the app should compliment your business or reflect your unique abilities and/or interests.

It is crucially important to understand your audience, what they can most benefit from, and deliver desired content via preferred learning modes. Three proven ways to start include: 

•   Determining your client’s needs. 
•   Researching existing apps serving this market. 
•   Drafting your plan. 

Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher

The first point is self-explanatory. 

The second may seem basic, but it’s surprising how many skim past this step with a mere cursory glance, only to find out after significant time and resources have been expended that a more sophisticated tool exists. Do not be afraid to identify competitive products that may thwart your plans. Successful entrepreneurs embrace similar products and focus on what they can do better and more effectively.

The third point is essential. You want to strategize and formulate your vision before the clock begins ticking. Thinking on someone else’s dime is not only expensive, but also unnecessary. Instead, brainstorm with partners, friends, and other trusted sources and create and refine an outline of how the product will look and how it will work. Unless you have money to burn, start the fire with the kindling of your efforts and let the professionals toss in the heavy logs.

Finding A Programmer 

With your idea formalized, the next step is identifying a suitable programmer to bring the concept to fruition. There are multiple options. FREE Numerous free development options exist. However, it’s important to note that in app-land, you really do get what you pay for. That said, if giving things a test run before fully committing is your preference, consider the following: 

•   Sencha: Sencha.com/Touch 
•   AppMakr: AppMakr.com 
•   Free iPhone App Maker: FreeIphoneAppMaker.com 
•   Free Android App Maker: FreeAndroidAppMaker.com 

Each enables you to create a functional app which can be a great tool for creating a working prototype and begin securing feedback. The downside to free is that, once your name and brand is associated with the app you’ve put forth, an impression has been made and there’s no turning back. If the app’s functionality, appearance, or value is minimal, the consumer will tie this directly to you. Make 100% sure the app is fully representative of the impression you want to make before hitting the “release” button.

Minimize costs to produce your app

A fully functional, cost-effective app can be built for less than $5,000. Many capable developers have the ability to create a professional looking product that represents your brand and image well. Three sites are solid resources to consider when searching for a developer: •   ELance: Elance.com •   ODesk: oDesk.com •   Freelancer: Freelancer.com Each enables you to provide various criteria such as developer location, experience, and total budget. Talent, of course, varies so be sure to check references and ratings. The caliber of developers available can be outstanding as many have salaried positions and moonlight to make extra cash. Ask for examples of their work and, contrary to popular belief, do not be afraid to select the lowest bid.

HIGH-END Developing a full-blown, highly robust app can be prohibitively expensive. It is not unusual for companies to spend upwards of $1 million to create an app with virtually every bell and whistle. Such apps typically involve detailed, interactive components and move far beyond the options offered by template-oriented products. For most, developing a high-end app is not an option. When it is, there are multiple companies who are more than capable of delivering per your specifications.

Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher

How to monetize your app

Not every app is created to generate income. Many companies seek to spread goodwill and garner exposure by giving their apps away for free. This is not unusual as thousands of firms implement this approach. If generating awareness is the core objective, the app typically serves the singular purpose of being a digital brochure. If the plan is to monetize your efforts, there are three proven tactics to consider.

1.   Sell It! Fees typically range from .99 to $2.99 with more robust apps costing significantly more, such as VIPorbit’s Business version which sells for $9.99 on the iPhone and $19.99 for the iPad. While seemingly expensive, the robust functionality ofVIPorbit is equivalent to desktop software that can cost significantly more. Additionally, it is available at your fingertips 24/7, which no desktop software can claim. For example, Sage ACT! was recently available for $466.99.…on sale!

2.   Sell Ads Within Your App In similar fashion to AdSense, Google’s AdMob.com has made it extraordinarily simple to place ads on your app via their proprietary platform. AdMob “allows earnings to be generated by placing targeted ads based on the site’s content and users.” Additional options include Greystripe.com and Smaato.com. Revenue is directly tied to traffic. Therefore, as more ads are shown, income will increase accordingly. And, while a significant number of views and clicks are required before more than just pocket change will be generated, each provides a reasonable opportunity to offset a portion of development costs.

3.   Offer A “Light” Version And Encourage Upgrading This strategy can be very effective. VIPorbit offers a free “light” version, as do thousands of other apps. The free version typically provides customers with a solid user experience, but refrains from allowing access to many key components. In consumer product marketing, this is often referred to as sampling, whereby a taste is offered to whet the consumer’s appetite and, hopefully, leads to the product being purchased.

Remember:

•   Modern technology has largely killed the intimacy associated with developing tangible rapport with vendors, clients and even, employees. 
•   Few apps make real money due to competition and price. 
•   Ideally, your app should compliment your business or reflect your unique abilities and/or interests. 
•   It is crucially important to understand your audience, what they can most benefit from, and deliver desired content via preferred learning modes. 
•   Over 300,000 apps were developed between 2008 and 2010, translating to an astonishing 10.9B downloads. 
•   By the end of 2011, more than 25 percent of mobile web users reported owning no other device to access the Internet. 
•   Apps can be lucrative but must be viewed as a component of the overall marketing/branding mix.

Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher