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August 6, 2014 21:14
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app revenue calculations
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| Development time: 3 weeks (15 * 8 == 120 hours) | |
| Marketing time: 2 weeks (10 * 8 = 80 hours) | |
| hourly: $200 (must pay well enough to justify risk) | |
| profit target: $40k (200 hrs * $200) | |
| revenue target: $60k (40000 / 0.67, Apple's cut) | |
| -------- | |
| ## Revenue breakdown | |
| In-app purchases needed to hit target at: | |
| - $30 | 2k | |
| - $20 | 3k | |
| - $10 | 6k | |
| - $5 | 12k | |
| - $3 | 20k | |
| - $2 | 30k | |
| - $1 | 60k | |
| Downloads required to hit revenue target at varying IAP conversion rates: | |
| 0.1% | 0.5% | 1% | 2% | 5% | |
| ---------------------------------- | |
| - $30 | 2M | 400k | 200k | 100k | 40k | |
| - $20 | 3M | 600k | 300k | 150k | 60k | |
| - $10 | 6M | 1.2M | 600k | 300k | 120k | |
| - $5 | 12M | 2.4M | 1.2M | 600k | 240k | |
| - $3 | 20M | 4.0M | 2.0M | 1.0M | 400k | |
| - $2 | 30M | 6.0M | 3.0M | 1.5M | 600k | |
| - $1 | 60M | 12.0M | 6.0M | 3.0M | 1.2M | |
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note on the hourly: yes $200/hour is high, but by working off these numbers you can still make $50/hr even if only 1 in 4 apps is successful. Which is absolutely possible