59 percent App Developers incur Loss
Date: Friday , June 01, 2012
59 percent of the developers fail to earn back the sum they had expended to develop the app, while 80 percent of the firms are struggling to generate revenue for establishing an independent organization, reveals a finding by App Promo, an App strategy and marketing agency.
The survey also found that the top earners in the group are seeing success because of the time and money they spend on marketing their mobile applications. The top earners represent 12 percent of participants who earned $50,000 or more with their most successful app. This group spent the most effort on marketing with an average of 14 percent of their time dedicated to promoting their app and also had nearly $30,000 set aside as the average marketing budget. This is a stark comparison to 52 percent of participants who spent as little as 5 percent or less of their time on promotion and had a marketing budget of $0.
According to the App Promo CEO & Founder, Gary Yentin, "After two years of working with developers on increasing downloads and money for their app, we wanted to do this survey to dispel the myth that all you have to do is build an app and watch the money roll on in. Our survey echoed exactly what we have been finding in the market, developers have to spend money and time on marketing in order to succeed."