Don’t Forget These Five Things About App Store Economics

In the excitement around launch, developers can get caught up in polishing features and squashing bugs–forgetting common sense strategies about distribution and pricing. Keeping these basic App Store principles in mind will pay off later.

Don’t Forget These Five Things About App Store Economics

We weren’t at the conference that Martin Pasquier talks about in this post, but it seems this Singapore-based social media marketer took away a few good pointers:


On getting featured in the App Store:

Hire a UX expert, as design and design only is… [the] way to be featured.

On $1 apps:

There’s no difference between 0.99 and 1.99 for customers, and as a rule, DON’T push down the price of your app. A good way to think about it is: ‘will I get twice as many customers with half the price?’ and the answer should be no, so, don’t move it.

On niche pricing:

Aim, if possible, for niche markets so that you can price it higher, and make a living out of your app. Apps for kids are impossible to price. Apps for kids with special needs (on food, on leisure, at school, with a language) have better value.

On Apple’s algorithms:

The New and Noteworthy section will showcase apps that are new, and with a significant number of downloads, around 3 000 in Singapore, and 6 to 7 000 in the US, up to 30-40 days. The Featured section is another part you want to get in, and you will be favored, again, if you do good to Apple’s customers, with frequent updates (every week during the first three months, then two per months), [and] have a positive feedback in reviews from users.

On seasonal promotion:

Take advantage of seasonal marketing, as you never know which new featured category can pop-up, such as Valentine’s specials. July is also a big month for download on the AppStore, and the festive season for Christmas, don’t miss it, and link your marketing with it, it’s an easy opportunity to get spotted.

Want to know more about the economics of software pricing? Read back in this story we’re tracking: Pricing Your Software Product: What You Need To Know.

[Image by Tax Credits on Flickr]

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I've written about innovation, design, and technology for Fast Company since 2007. I was the co-founding editor of FastCoLabs.