Just a few days ago, I received an email from somebody who uses one of my apps. It ended with the following:
I suggest using ads in this app.
YOURS TRULY AN UNSATIFIED CUSTOMER
It’s a perfect example of somebody who is not your customer. It’s tempting to listen and react to advice like this, after all as humans we don’t want to upset people.
If I were to use ads in my apps I would almost immediately go out of business, since I’d earn approximately $0.0005 per user. This revenue is not enough to continue to maintain and develop my products, both paid and free.
While this model might work for some games with millions of active users, I prefer to charge a small fee to access the more professional features within my apps.
In the interest of complete transparency these are the numbers:
- Using ads would generate around $87.50 per year
- Charging a small upgrade fee currently generates $158,000.00 per year
This is truly an enormous difference. My current business model generates the same revenue as an entire year of ad revenue every 3.5 hours.
Let’s not forget… Nobody likes ads.
Don’t be tempted to react to bad advice from people who are not your customers. Let’s imagine you sell running shoes for $100, would you take advice from somebody who was only interested in buying socks for $0.50? Sure, they’re looking for footwear, but you’d just point them towards the discount sock store.