18: Choosing a Pricing Model
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Welcome to Under the Radar, a show about independent iOS app development.
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I'm Mark O'Arment.
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And I'm David Smith.
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Under the Radar is never longer than 30 minutes, so let's get started.
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So I am in the process of wrapping up development on my next app.
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Yes, another one.
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It's truly shocking and a revelation that I'd be working on a new app.
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And I'm at the point now where the app is mostly finished.
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It's like functionally complete.
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I'm getting ready to start sort of more broad testing
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and that kind of thing.
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And it's an app that's geared in sort of
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in the health and fitness area
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that I've been doing recently
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to sort of join the ranks of pedometer plus plus
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and C plus plus.
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This one's about displaying the activity
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and fitness data collected by Apple watches
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in hopefully a more useful way.
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So I'm through with the part that I have a lot of comfort with in terms of sitting down
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and just building an app, like the actual opening Xcode and coding.
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That part I always feel good about.
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But now I'm hitting a more challenging part of it, at least for me, that I thought would
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be interesting to talk about, and that's the process of working out the business model
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that I'm going to ultimately launch the app with.
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And maybe some people would think that it would be a better idea to have the business
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model in mind before I make the app, but that's just not the way I work. I have an idea, I
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start building it, a few weeks later I have the app, that's just how my process works.
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So now I hit the point that I have to decide what am I going to do with this. And you'd
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think at this point, like, I've been doing this for long enough and I've launched enough
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apps that I would just immediately know what it is I'm going to do. But the awkward reality
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is I looked at it and I'm like, "I don't really know what I want to do for this app."
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I could make it do so many different things. The number of options available to app developers
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these days is kind of wild in terms of it's not just like the old days where you could
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have a paid app or a free app, or push it free with ads, and then they introduced in-app
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purchase. And originally, in-app purchases were only in paid apps, and so you could have
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extra, what they call "pay-me-em" apps, and then they added in-app purchase for free apps.
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We can do that now."
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And there's recently been a whole big wave of fitness apps being purchased by big companies.
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And so that's even like this other kind of vague, not like a business plan, but this
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sort of like a concept of people are making fitness apps and eventually being purchased
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by bigger companies and making their money that way.
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And so that leaves me in kind of a crazy thing.
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And so what I wanted to do this week is to sort of think out loud and get your thoughts,
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about how to proceed and kind of the considerations and the thoughts that go into this. Because
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I imagine anybody who is making an app, a product, something like that, you have to
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go through this kind of mentality, this thought process, to think, you know, what's ultimately
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going to be best for you. And the answer is probably different for everybody. So thinking,
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you know, rather than just giving an answer, explaining how I'm going to hopefully end
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up with an answer is probably more helpful.
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- So for me, I think that one of the ways to look at this,
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first off, is if you have any previous apps
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that you've made, especially anything you've made
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in recent years, since the economy always changes
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in the app store, any parallels you could draw
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from other apps of what might be the best pricing model
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for a similar app that you've made and how that's done.
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- Sure, and probably the closest app to this is,
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of all my apps, it's certainly gonna be Podometer++
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Sleep++, which are fitness apps.
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And probably in many ways, Sleep++ is the,
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actually, I guess, Pedometer++ in the early days
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had the same thing where, because it's an app
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that's tied to a particular platform,
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like when Pedometer++ launched,
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it was tied to the iPhone 5S.
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And if you didn't have a 5S, it was worthless to you.
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And then, you know, with Sleep++,
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if you don't have an Apple Watch, it's useless to you.
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And this new app, if you don't have an Apple Watch,
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it's not really gonna be able to show you anything useful.
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So those are probably like the closest to the way I do it now.
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And those are both free with ads and an in-app purchase
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to remove the ads.
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And in the case of Pedometer++, the in-app purchase
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is structured as a consumable tip jar type of thing.
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And in Sleep++, it's just like a one-time regular,
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like an in-app purchase to remove ads
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with a nice little message saying, thank you so much.
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- And Pedometer++ does not have ads at all, right?
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And it didn't initially launch with them. Initially, it just launched with the tip jar.
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But that, I introduced ads after a while because the tip jar, while conceptually I liked, from
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a performance perspective, didn't do that as well. At least until I added ads to it.
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And once I added ads, like once there was both the carrot, like "hey, support me, this
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is great," and the stick of "I'm going to show ads in the app unless you pay," like
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the combination of those two led to a much more robust adoption of the tip jar. And so
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I added ads and it's been working much better since then. Because otherwise I'd find sort
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of the, I launch it, or I launch a big update and I'll get this kind of like this little
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wave of goodwill and then it drops to almost nothing. And so that didn't really work in
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the long run.
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That makes sense. So now it seems like the most logical conclusion then, if you say that
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the new app is most similar to Penometer++ and apps like this, and the Penometer++ and
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Sleep++ both have this kind of ads with paid options to remove them models, and they both
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work pretty well. It seems on the surface that would be the best choice. But with iAd
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shutting down this summer, then obviously that throws a wrench into everything, right?
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Exactly, yeah. Like, I look at this and it's more complicated, both because of that and
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And also because in a weird way I also want diversity in my income stream, and so having
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everything be the same model sometimes makes me wonder if that's problematic.
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If all of my money is coming from ads, it's sort of in the same way that, fair enough,
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I can move to another advertising platform.
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But if there was some App Store policy change, for example, that changed the types of advertising
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that were allowed, and it essentially meant that advertising rates collapsed. If all my
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income is coming from advertising, then it's probably problematic. Or if the types of ads
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that are available become more and more skeezy and crummy, then I can—and my entire business
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is based on that, that's not a great position either. And so I end up with this weird thing
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of it's like, there's a lot of things that I could do. And when I was taking a step back
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and thinking about preparing for this episode, I kept kind of coming back to it, it's like,
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ultimately I have to decide. And this is like, really, I think that you can build a business
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model to do one of four things. You can either maximize the money that you get now, you can
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maximize the reliability of income you'll get later, you can maximize the overall money
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the app will ever receive in its lifetime, or you can try and maximize your user base.
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Which one of those things will vary dramatically will then decide which business model makes
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the most sense for you.
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Because if I want the most money now, well I should probably do like a paid app.
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Just like charge money up front, hope for a little bit of press when the app launches,
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you know, kind of get a big push, have a couple of days with nice big sales, and then it'll
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likely fall off pretty dramatically. At least that's my experience, is that you end up with
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this very steep drop-off afterwards. But in that first couple—in that first week or
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so, you can actually make quite a lot more than you would probably be able to make from
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any of the other models. And so you can make it now. And if I want reliable income, something
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like advertising is great, because there's no—there isn't kind of like this one-time
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purchase nature to it, where people just keep—every time they open the app, I make a fraction
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of a penny, and so if people keep using the app, there continues to be money coming in.
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Overall revenue is probably going to be some combination of them, where it's like, "I'm
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going to do everything.
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I'm going to have ads, I'm going to have in-app purchases to remove ads, I may have
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in-app purchases to do features."
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Do everything you could possibly do to try and maximize things, and then if I wanted
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to just maximize the user base, well, then you kind of take the VC model and say, you
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know, just make it free, and hope that you'll work something out down the road. Like, if
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once you have hundreds of thousands of customers using the app all the time, then hey, that's
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got to be worth something to someone, right?
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Yeah, I mean, so I think, so with Overcat, I obviously chose the, pretty much the latter
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option, which, pretty much, make it free. At first I had like, you know, free with unlock
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to get all features. Now it's pretty much everything's free and you pay if you feel
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like it, which is almost like everything's free. And the reason I did that was because
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I wanted to maximize the user base, really. I have political goals with how I feel about
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how podcasting apps should and shouldn't be designed. And I want to keep podcasting
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open and reduce the influence of proprietary gatekeepers and everything. And so for me,
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it was important to maximize the user base first
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and then figure out money with that in mind.
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Not necessarily later, because I didn't delay making money,
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but just figure out a way to make money
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while also giving away as much as possible for free.
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And so that's the model I chose.
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That though, that was in the context
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of this entire ecosystem that had these other factors
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that I was playing to.
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In your situation here with this app,
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With every app, certain models will work better than others.
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And it depends so much on what the app is,
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what the competition is, how your market timing is,
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what the market is itself.
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So something like Pedometer++,
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was that initially a paid app
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or was it always free up front?
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- It's always free.
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And especially, it was free because it required an iPhone 5S
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and there was no way that I could require you to have one
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before you purchased it.
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And so I made it free because I was afraid
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that there would be lots of people who would pay for it
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and then immediately discover that it's worthless
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and go and get a refund or leave a one star review.
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And so it just never seemed like
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paid would be a viable option.
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- Right, and so therefore, the same thing applies to this,
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then, 'cause this requires an Apple Watch.
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So, you know, it's, or does it officially require it
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or does it, you know, basically, it basically requires it,
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right? - It basically requires,
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it would be fairly useless without one.
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- Right, exactly.
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So it seems like paid is right out the window,
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which is unfortunate because actually,
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something like this where you're saying
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it's taking advantage of something new,
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it's something that is a small market,
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there's probably gonna be very little competition out there,
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at least at first, so that kind of condition
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usually is a really good fit for paid,
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where you have people who are gonna be motivated to get it
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and very little competition really,
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and especially it being new.
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That combination usually means go paid up front.
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Because you kinda have to be free up front
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because we don't have real trials,
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and this would be a great case for a trial,
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but those don't exist, so instead,
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you have to be free somewhat.
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So the only question now is whether you lock some features,
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whether you use ads or whether you just don't think
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about money with this app and use it for other purposes,
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like promoting your other stuff
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or giving back to the world or whatever.
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So going through those one by one, I guess,
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free with unlock is tricky.
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Certain apps, there just really isn't a good place
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to put that locking barrier.
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So like one of the examples, I know,
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I think James Thompson talked about this a while ago
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with Peacalc, is, you know, where do you,
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if you have a calculator that you wanna be free up front
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with a paid purchase to unlock something,
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what do you unlock?
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Like the nine button?
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Like it's hard, it's like certain apps are just hard
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figure out where to place that barrier in a way that the app isn't totally useless
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without it, but that enough people will hit that barrier and be motivated to pay. And
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certain apps, the answer is just this doesn't fit well and there isn't a good place for
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it. And certain apps, you know, there are plenty of places for it and the question is
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where do you put it? And so in this case, do you think there's a good spot to have
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a paid unlock? Like there's a good feature or set of features or limit that can be removed
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where enough people will hit that and want to pay, but they won't hit you because it's
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so annoying every time they hit it.
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The only one that comes to mind for an app like this is to do some kind of artificial
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limit on the amount of data that it will display. So you'd have something, you know, it's sort
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of like, in the same way like pedometer++, like it shows you historical data, it would
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be like, "You can only see the current week." "Unlock to see all" kind of a thing is the
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only thing that I could sort of see, because partitioning the feature set or the functionality
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in other ways, it feels so contrived. It feels much more like the, yeah, you can do multiplication,
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but you can't do division. It completely kind of removes the point of the app if you start
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partitioning the features. And so the only thing I could ever really, I could ever kind
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of imagine is to say like, "Hey, I'm only going to show you this amount of data. You
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know, if you scroll beyond that, there'll be a little box that says, 'Hey, would you
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like to see the rest of your data? You know, I'm holding it hostage for two dollars at
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the bottom.'"
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Yeah, and that's so tricky to do while also balancing like the user's will to pay you,
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because it's so easy to just appear really stingy or annoying or cheap with what you
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give them for free and what you don't. And if they don't feel good about your app,
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they usually won't pay to get past that barrier. Some people still will and they will
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hate you for it. I've done that before with some apps like, some apps were like,
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"I really needed it to get my job done and they offered a free trial and I kept hitting
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walls and I just, eventually I did pay in a lot of these cases and I, but I just felt
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terrible. I felt like I hated them for it." And that kind of soured me on the whole company
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on their future products or my experience with the app
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or my willingness to recommend it to others.
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So it's always a hard balance
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whenever you have these barriers.
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But that being said, if you have an app
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where a barrier like this makes sense
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and where you can find a good place for it
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and you implement that well,
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it usually is a really good way to make a reasonable living.
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Like you can usually get decent income that way
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without a lot of the problems of things like ads
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or paid up front.
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So usually that is great when it works,
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but it is really hard to make it work.
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- Yeah, and I think one thing that I always struggle with,
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and I'm trying to think of this,
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it's like, what am I communicating to my customer?
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Because the hardest part, I think,
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that you have to get over,
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and a little bit I think you were alluding to it
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for it makes you feel bad,
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is when you say this part of the app is free,
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like the initial part,
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and typically it's like the core part,
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like the main purpose of the app is free,
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and then there's these extra things that are like cost more.
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Like the weird thing that you have to keep in mind
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is in some ways what you're communicating to your customer
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is like the core part of the app is free
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or in some ways you could like, it's not a great word
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but it's more helpful for this analogy,
00:15:56
◼
►
is like this part of the app is worthless.
00:15:59
◼
►
And this other part somehow I'm saying is worthful
00:16:04
◼
►
but if you look at those as a customer
00:16:08
◼
►
they may look functionally identical, right?
00:16:11
◼
►
You're saying like, the ability to do this X, Y, and Z
00:16:16
◼
►
shouldn't cost you anything.
00:16:17
◼
►
And I'm telling you that it shouldn't cost you anything
00:16:19
◼
►
to do these things because I just gave you an app
00:16:22
◼
►
that you downloaded for free that does those things.
00:16:24
◼
►
So I've communicated to you, this is worthless.
00:16:28
◼
►
But this other thing that is essentially probably
00:16:31
◼
►
very similar to the other thing,
00:16:33
◼
►
and is in many ways a contrived barrier,
00:16:37
◼
►
like somehow should be valuable.
00:16:39
◼
►
And like there's a dissidence there
00:16:40
◼
►
that I feel like is where it gets really hard.
00:16:42
◼
►
Like you can only really make the case
00:16:44
◼
►
for unlocking something when the thing that you're paying
00:16:48
◼
►
is like paying for feels different
00:16:52
◼
►
and like completely orthogonal to the thing that you,
00:16:57
◼
►
the core part of the thing that you gave away for free.
00:16:59
◼
►
You know, so often you'll have something
00:17:01
◼
►
where there's a physical cost associated with it.
00:17:04
◼
►
like you're paying for storage or for a sink,
00:17:07
◼
►
you know, to access sink or something where
00:17:11
◼
►
it's not the thing that I gave you for free,
00:17:13
◼
►
just, you know, like, it's something totally different
00:17:17
◼
►
in a tangible way.
00:17:19
◼
►
Because when you do that, I think maybe that's where
00:17:20
◼
►
you can get around that feeling of like,
00:17:22
◼
►
I feel bad about this, because I feel like
00:17:24
◼
►
they're just kind of, you know, like being cheap
00:17:28
◼
►
by, you know, creating this artificial limit.
00:17:31
◼
►
It's tough too because when you put up a limit like that,
00:17:34
◼
►
people will hit it and they will try to rationalize
00:17:38
◼
►
not going past it.
00:17:39
◼
►
So if you put up a limit and you say,
00:17:41
◼
►
well, you can only see the last week of data or whatever,
00:17:44
◼
►
you know, whatever limit you put up,
00:17:45
◼
►
people are gonna hit that and they're first going to think,
00:17:48
◼
►
well, I guess I don't need that, right?
00:17:50
◼
►
Like they're gonna try to convince themselves
00:17:52
◼
►
they don't need that because they don't really wanna pay.
00:17:55
◼
►
So they're gonna try to say, well, you know what,
00:17:56
◼
►
I can get along fine without that.
00:17:58
◼
►
And even if they would enjoy the app more with that,
00:18:01
◼
►
even if they would get their $2 or whatever
00:18:03
◼
►
worth of enjoyment or value out of having gone
00:18:07
◼
►
past that barrier, they will try very hard
00:18:09
◼
►
to convince themselves, even if it's subconscious,
00:18:11
◼
►
not to go past that barrier.
00:18:13
◼
►
And so you'll have so many people who really could
00:18:16
◼
►
use the app, who really could enjoy it a lot more
00:18:18
◼
►
if they would pay the two bucks,
00:18:20
◼
►
but who have convinced themselves they don't need to
00:18:22
◼
►
because they would rather not.
00:18:24
◼
►
And that's the issue I faced with Overcast.
00:18:26
◼
►
That's one of the reasons I went patronage eventually.
00:18:28
◼
►
It's just very hard, but I don't know.
00:18:29
◼
►
And then we have a lot more better options,
00:18:32
◼
►
or different options at least, including ads.
00:18:36
◼
►
But let's read an ad first,
00:18:37
◼
►
because podcasts are ad-supported for many reasons
00:18:39
◼
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that we don't have time to talk about now.
00:18:40
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naming it can be very difficult,
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but Hover provides a great search
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00:18:55
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and they will show you all the different top-level domains
00:18:57
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and you can find a domain that works for you,
00:19:00
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that's what you want with something on the end of it,
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00:19:11
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As long as it's possible to include, they will include it.
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00:19:52
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00:20:17
◼
►
So there's also ad supported apps.
00:20:19
◼
►
To me, it sounds like it'd be a decent idea
00:20:22
◼
►
'cause it sounds like you get money
00:20:25
◼
►
when the app is being used.
00:20:27
◼
►
And no one has to decide whether to pay you or not,
00:20:30
◼
►
because the ad is paying you automatically, effectively,
00:20:32
◼
►
if they use the app.
00:20:34
◼
►
And they can maybe pay to remove it or something,
00:20:35
◼
►
and that's a separate discussion, which I'm sure we'll have,
00:20:38
◼
►
but at the heart of it, you kind of automatically
00:20:40
◼
►
just get money slowly with usage.
00:20:44
◼
►
Of course, there's downsides in practice,
00:20:46
◼
►
things like privacy concerns, annoyance concerns,
00:20:50
◼
►
image concerns, what do you think about apps with ads?
00:20:53
◼
►
Yeah, it's an uncomfortable-- if you may have noticed,
00:20:59
◼
►
that was an uncomfortable intake of breath.
00:21:02
◼
►
Because I don't like using apps that have ads in them,
00:21:07
◼
►
but I make a substantial amount of my revenue from ads.
00:21:13
◼
►
And there's a little bit of cognitive dissidence about that.
00:21:16
◼
►
It's ultimately the pragmatic part
00:21:18
◼
►
of this is the practical way to make revenue.
00:21:21
◼
►
But the reality is, my app is never made better by having an ad in it.
00:21:28
◼
►
It's not like, "Oh, wow, people will love it when they can see ads for Game of War or
00:21:37
◼
►
Clash of Clans or whatever the latest free-to-play game is," which is essentially what most mobile
00:21:45
◼
►
ads seem to be these days.
00:21:46
◼
►
They're for one of those games, or they're for a big brand like Audible or Google or
00:21:50
◼
►
or something like that.
00:21:52
◼
►
And so putting those into my apps
00:21:55
◼
►
always feels a little bit not great.
00:21:58
◼
►
But the reality is, like you said, it works well,
00:22:04
◼
►
and I like conceptually the fact that
00:22:08
◼
►
I'm getting paid for use in a way that,
00:22:12
◼
►
it's a really nice virtuous cycle.
00:22:14
◼
►
I wanna make an app that's really engaging,
00:22:16
◼
►
and you want to keep opening up and looking at, you know, if I'm showing you, you know,
00:22:21
◼
►
help and fitness data, like, hopefully it's motivating. Hopefully it's something that
00:22:24
◼
►
you want to go and check on a regular basis. And so aligning a business model with that,
00:22:29
◼
►
where it is something that the more you use it, the more money I make, like, is great.
00:22:34
◼
►
And in some ways, it makes me think of the way that, like, I almost kind of wish that
00:22:39
◼
►
that there was a mechanism kind of like what musicians
00:22:44
◼
►
have with streaming services.
00:22:47
◼
►
Oh, you don't want that.
00:22:48
◼
►
Not necessarily.
00:22:49
◼
►
Well, conceptually I do.
00:22:50
◼
►
I don't necessarily-- it breaks down in certain ways,
00:22:53
◼
►
obviously, like all these things do.
00:22:54
◼
►
But conceptually--
00:22:55
◼
►
Just add a bunch of zeros to the number, basically.
00:22:57
◼
►
Then we want that version of it.
00:22:59
◼
►
That version.
00:22:59
◼
►
That version would be so great, right?
00:23:01
◼
►
But conceptually, every time someone listens to the song,
00:23:04
◼
►
they get a bit of money.
00:23:05
◼
►
And if every time someone opens my app, I got a bit of money,
00:23:08
◼
►
that would be great.
00:23:10
◼
►
Like if such a thing sort of existed,
00:23:12
◼
►
like if there was like, rather than Apple Music,
00:23:14
◼
►
there was like Apple App,
00:23:16
◼
►
and people paid a certain amount of money
00:23:18
◼
►
and it was distributed around people
00:23:19
◼
►
based on what they used or something, right?
00:23:21
◼
►
Like you could imagine a system
00:23:22
◼
►
that would sort of work in that way.
00:23:23
◼
►
Like it's hugely problematic,
00:23:25
◼
►
and I'm not really advocating for that,
00:23:27
◼
►
but like conceptually, a version,
00:23:30
◼
►
it would be like the business model that ads create,
00:23:33
◼
►
but without the potential for kind of like not desirable
00:23:37
◼
►
Yeah aesthetics in my apps. So like that would be great that doesn't exist. And so you end up with ads and
00:23:45
◼
►
You ultimately I like I end up like most likely than not that's ultimately what I'll probably have to do is
00:23:50
◼
►
I look at it and it's like, you know
00:23:52
◼
►
If I have ads in this app
00:23:54
◼
►
I will if it's successful if it's just downloaded wildly then I will likely you know
00:24:00
◼
►
make a reasonable amount of semi reliable income from it and
00:24:03
◼
►
And if it's sticky and people really like it
00:24:06
◼
►
and keep coming back to it,
00:24:07
◼
►
my revenue will continue to, if not grow,
00:24:10
◼
►
at least stay stable in the long term, which is great.
00:24:13
◼
►
See our episode about work-life balance that we just did
00:24:16
◼
►
where I talked about the more you can make your income
00:24:20
◼
►
kind of passive and not related to what you're doing,
00:24:24
◼
►
And so ads are great for that
00:24:26
◼
►
'cause it's all based on work you've done in the past
00:24:29
◼
►
continuing to pay you in the future.
00:24:31
◼
►
I just wish it didn't make me feel so kind of like,
00:24:34
◼
►
hmm, whenever I do it.
00:24:36
◼
►
- Yeah, and it seems like with ads,
00:24:39
◼
►
you could do something crazy like direct sales of ads,
00:24:42
◼
►
but that's a lot of work.
00:24:44
◼
►
It's the best for privacy maximization, really,
00:24:46
◼
►
and it might be the classiest, but that's a ton of work.
00:24:49
◼
►
And as you go down the rabbit hole,
00:24:51
◼
►
I'm like, well, I could join a network,
00:24:53
◼
►
and a small app network if that existed,
00:24:56
◼
►
which I don't even know if it does.
00:24:58
◼
►
But assuming that existed,
00:24:59
◼
►
then we pool resources, selling ads is a little bit easier,
00:25:03
◼
►
maybe I don't have to do it anymore,
00:25:04
◼
►
or I can share a salesperson with somebody else.
00:25:07
◼
►
And as you get further down, it's like,
00:25:08
◼
►
well, all these things are a lot of work,
00:25:10
◼
►
until you get down to the, well, I can just plug in
00:25:13
◼
►
a module from a big ad provider,
00:25:16
◼
►
where I might not have even dealt with a human at all
00:25:20
◼
►
to be part of this thing, you're getting who knows what ads
00:25:23
◼
►
from who knows where, and they're doing who knows what
00:25:25
◼
►
with your customer's privacy and data.
00:25:28
◼
►
But that's also the easiest for you.
00:25:30
◼
►
And so with ads, the incentives are all towards
00:25:35
◼
►
getting creepier and creepier because the easiest ways
00:25:38
◼
►
to get into ads and the most accessible ways
00:25:40
◼
►
to get into ads happen to also be the worst
00:25:43
◼
►
about privacy and customer data in most cases.
00:25:45
◼
►
Whereas anything better than that tends to take more work
00:25:49
◼
►
than what most people can really devote to it.
00:25:51
◼
►
- Exactly, and in my first ever foray into ads,
00:25:56
◼
►
I did actually sell them direct.
00:25:57
◼
►
This was way back early days at the App Store because ad networks didn't exist, and I would
00:26:04
◼
►
sell ads to other app developers for very small amounts of money.
00:26:11
◼
►
But that was the best you could do back then.
00:26:13
◼
►
But now, yeah, you install iAd for the next couple of months, or AdMob from Google, or
00:26:21
◼
►
any of the million things.
00:26:22
◼
►
Like see our previous episode about ads, where there's so many networks and all kinds of
00:26:25
◼
►
of things, and you just kind of put it in and, in theory,
00:26:30
◼
►
and then money will start flowing, and that's great.
00:26:34
◼
►
In some ways, this is an area, though,
00:26:35
◼
►
like speaking of the last version of business model,
00:26:38
◼
►
that probably doesn't really fit from what I do,
00:26:40
◼
►
but is interesting nevertheless, is I am kind of envious
00:26:43
◼
►
of venture-funded companies in this regard,
00:26:47
◼
►
because they don't have a business model.
00:26:49
◼
►
They don't need--
00:26:49
◼
►
- Well, they have a different business model.
00:26:51
◼
►
Their business model is get really huge
00:26:53
◼
►
and worry about it later,
00:26:55
◼
►
even though that usually means probably get bought
00:26:57
◼
►
before we have to worry about it.
00:26:59
◼
►
- Which is a business model, just different from what we do.
00:27:01
◼
►
- Yeah, and I look at that and I'm like,
00:27:02
◼
►
in some ways that's actually kind of cool,
00:27:04
◼
►
to be able to just say, you know what,
00:27:05
◼
►
I'm just gonna focus on making something cool
00:27:08
◼
►
and getting as many people as I can to use it.
00:27:11
◼
►
And I don't need to worry about the financial part of that.
00:27:15
◼
►
And in some ways, that's kind of interesting.
00:27:18
◼
►
I definitely had the thought for something like this,
00:27:20
◼
►
of saying, you know what, what if I just went,
00:27:23
◼
►
took that tack and hope, you know, it's like,
00:27:26
◼
►
MyFitnessPal got bought by Under Armour,
00:27:29
◼
►
RunKeeper got bought by Asics.
00:27:31
◼
►
At some point, if I was able to make a wildly successful
00:27:36
◼
►
health and fitness app that could be picked up
00:27:39
◼
►
by some other company for, you know,
00:27:41
◼
►
and it's probably in some ways more money
00:27:43
◼
►
than I could ever make from running AdMob ads
00:27:47
◼
►
in an application.
00:27:48
◼
►
Like, that sounds kind of interesting.
00:27:50
◼
►
It's like the risk dynamic on that,
00:27:52
◼
►
just like goes through the roof where it's like,
00:27:54
◼
►
or I could end up with having made this cool thing
00:27:57
◼
►
that ends up making me no money ever.
00:28:00
◼
►
And that's kind of terrifying as well.
00:28:02
◼
►
- Yeah, right.
00:28:03
◼
►
All right, well, what do you think you're gonna do?
00:28:05
◼
►
Have you come to any conclusions
00:28:07
◼
►
or are you still gonna think about it?
00:28:09
◼
►
- I'm still gonna think about it.
00:28:11
◼
►
I'm probably gonna do,
00:28:12
◼
►
like I think my default is gonna be ads.
00:28:15
◼
►
Like I don't think paid works.
00:28:16
◼
►
I don't think unlocking features really works.
00:28:19
◼
►
Like I don't like the thought of.
00:28:20
◼
►
- Right, and to clarify,
00:28:21
◼
►
really works for this app on both of those.
00:28:23
◼
►
- For this app, yeah, exactly.
00:28:24
◼
►
The whole point of this discussion is like,
00:28:26
◼
►
whether it works in this particular case,
00:28:28
◼
►
and the reason we're going through it step by step
00:28:30
◼
►
is that every app is different.
00:28:32
◼
►
This is why this may or may not make sense for this app.
00:28:35
◼
►
Ads are the easy thing.
00:28:38
◼
►
I don't feel great about them,
00:28:39
◼
►
but I think they are sort of the obvious
00:28:41
◼
►
and straightforward choice.
00:28:42
◼
►
I'll almost certainly have an option to remove the ads,
00:28:47
◼
►
just in terms of that's often just, it makes me feel better.
00:28:50
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Maybe it's like it's just like cleansing my conscience a little bit about not having
00:28:53
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ads to say like, "If you don't like them, that's fine.
00:28:56
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Then it's just a paid app and you can give me money and they'll go away."
00:29:00
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And if I'm feeling particularly daring or a little bit reckless and wild, then maybe
00:29:04
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I'd just make it free.
00:29:06
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But being a one-person shop who pays my mortgage with the revenue from my apps, not having
00:29:12
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any revenue does not seem particularly wise.
00:29:16
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Well, that's all the time we have for today.
00:29:18
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Thanks a lot to our sponsor, Hover, and we will talk to everybody next week.
00:29:22
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