iPhone App Entrepreneur

Steve, What's the Deal?

Silicon Alley Insider is reporting that Apple has asked developers to send in their applications today for testing and approval before the July 11 launch. Problem is, if you haven't been accepted into the $99 developer program, then you won't be able to submit your app. SAI is also reporting there's a six month wait to be accepted into that program, which is a huge problem. 

This is an extremely frustrating development, and not only because we haven't been accepted ourselves for a side project we're currently working on. Developers have been getting an unacceptable amount of communication from Apple on this (ie, hardly anything), and thats not the way to run a business. There's no criteria for who's getting accepted and who isn't, or even how long it will take, or when you could expect to be accepted. 

For the average developer looking to monetize their application, the stakes are rather large. Knowing your application is done and sitting on the sidelines while your competitors rake in the cash is frustrating (to be polite). 

Basic applications have that problem, but many applications have social components these days. The social take on Metcalfe's law dictates that the more users an app has the more useful people will find it. So the applications that get in and are able to accumulate users have an exponential advantage over later applications. 

All in all this adds up to some very frustrating developments. Not to mention a huge problem for Apple. Obviously, Apple has an incentive to accept applications, so I'm not second guessing their motives, but having developers sitting around with finished applications and no way to make money doesn't sound like a recipe for success. Many will turn to marketing to jailbreak users, which will only encourage more jailbreaking. (Metcalfe's law used against Apple). The more applications there are out there for jailbroken phones, the more people will jailbreak theirs and the more developed and refined the distribution system for those applications will become. 

Our prediction that jailbroken phones would become rare is predicated on the fact that developers would turn to the app store to make money off their apps. But if they aren't making money (by not being in the App Store), they will find money somewhere else somehow. And thats a problem for Apple. 

So, Steve, "what's the deal?

Will there be an App of the Week on the App Store?

Just like Apple gives away the single of the week on the iTunes Music Store, will Apple give away an application each week?

Most people aren't aware of it, but Apple chooses what songs to give away. The band then receives the full amount for each download, exactly as if it had been purchased. Millions of iPhones, free applications, well, you get the picture. You can only hope to be so lucky, but good luck all the same.

Taking the opportunities that are presented to you

Taking the opportunities that are presented to you Today’s post is about a common new entrepreneur affliction. We want to do everything ourselves. Not only that, but we want to be able to look back on the past once we’re successful (which we will be) and say that we did it all ourselves. Coders and developers entering the business side for the first time are often horrible when it comes to this very thing. It’s a variation on the “better mousetrap” mentality. Your code should stand on its own, right? It doesn’t need any help. People will try your new iPhone app, love it, tell their friends, and the story will end happily ever after. If it fails, its because of “something else.” 

iPhone Publicity Opportunities

TechCrunch wants your iPhone demo video. They’ll hold the press release until the App Store launches, and then feature the best ones on TechCrunch, as well as include them in an iPhone App directory on the site. Meanwhile, iLounge has announced the Quest for the Best iPhone App Contest, which will highlight the best three apps and give out some prizes. 

Interesting Stuff From Around the Web 6-18-08

Seven Startup Lessons From Intuit - a condensed look at things that worked.

Growing Pains: How to Manage Customer Service as a One Person Enterprise - Because we were all small at one point or another. Some of us still are.

It Doesn't Have to Be All or Nothing With a Startup- 37signals' take on why not to overwork yourself.

15 Entrepreneur Blogs Worth Reading - We all need inspiration now and then.

The Peripheral iPhone Economy

With all the rush to develop iPhone applications, its easy to miss other entrepreneurial opportunities embedded in the iPhone economy. While some people develop their own applications there is also another option, what I like to call the Peripheral iPhone Economy. 

The Dangers of Under-Pricing Your iPhone Application

According to recent articles and ad-hoc surveys taken at Apple’s WWDC, many developers are looking to offer their applications for free. While free might sound good to the ears of anyone wanting applications, entrepreneurs in it for the long run should be wary of pricing their applications at $0 or far below costs. Here’s why.

Disappointing News From the App Store

Silicon Alley Insider is reporting that developers will only get sales figures from the App Store once a month. While that might be fine for music artists, it just doesn't cut it for business owners and entrepreneurs. After all, songs are priced at $.99, and you don't exactly change them after you put them up. But applications need to be competitive, and that means knowing how well you're doing. Should you lower your price? Raise it up? Add more features? How much money can you put into new development? Some people will be trying to develop apps in under a month, how the heck are they supposed to know how much they can spend without knowing how much they've made? How are entrepreneurs supposed to know how well their apps are selling? 

Kudos to Apple for working on the App Store so hard, it looks great, but they need to be aware they're not running a music business here anymore. There's no reason developers can't get a daily or weekly report. Especially for people selling their apps for a fee. Thats why you get a 30% Apple. Now put it to use. Daily reports, country reports, even a complete analytics package is what you really should be aiming for. 

Coffee Break, Part II

After a few hours on a runway yesterday, I'm finally back from vacation. I'll take another look at pricing soon, along with any developments from WWDC. If any developers would like to share sales figures with me, either confidentially, or publicly, please email me at tom@iphoneappentrepreneur.com. I'd love to hear how people are doing.