Have an app idea? A strategist’s no BS take on the basics you need to know [FAQ]
Stop Googling “idea to app” because every article is by a development agency that is desperate for your business. Odds are, your app idea sucks, and you shouldn’t develop it. I know this because I’ve witnessed many founders pour thousands of hours and millions of dollars into dumb apps.
I’ve put together this app idea FAQ so you can come to your own conclusions and hopefully, not quit your job.
Warning: Blatant sarcasm is sprinkled throughout this piece for my own amusement and for your own good.
Preface
I have been in the “app business” since 2014. I have worked with over 200 apps and have heard every app idea in the book — even the brilliance of a mirror app. I have seen few successes, a lot of failures, and an overwhelming amount of disappointment.
I have worked at App Partner & Fueled, two award-winning NYC app development agencies. I have also maintained a Top Rated status on Upwork for two years, boasting a 97% Job Success rating. I’d like to think I know a thing or two about apps.
This piece is intended to educate the average non-technical person on the basics of launching an app. It’s also intended to prevent dumb app ideas from being developed.
First: Side project or company?
Is this app a side project with little to no risk involved? Or do you plan on starting an actual business? This is the first question you need to address because you need to figure out how serious you are about this app.
If you’re an indie developer with free time or if you feel like tackling an app as a hobby — go for it. As long as you’re not spending money and time you don’t have, you’re in good shape.
On the other hand, if you’re about to dump thousands of dollars and hours into an idea you had two weeks ago, give it some thought.
You’ve probably heard it before, but I’m here to tell you again, 90% of startups fail. You need to have confidence in your product, but at the same time, you need to be realistic. Building a successful app business is possible, but to what extent is the real question.
Your app/company is a reflection of you
If you’re dying to be the founder of your own company, awesome. Join the millions of other hungry entrepreneurs. But consider this. What if I interviewed five of your closest friends or family members and asked them the following questions:
- What kind of experience does x have in the app’s industry?
- Does x follow through with projects from start to finish?
- Is x known for wanting to make a quick buck?
- Why does x want to pursue this venture?
If you’re scared of the answers that just came to mind— you should be. This company is going to be a full-time gig and then some. If you’re not willing to put in the blood, sweat, and tears that come along with starting a company, drop the idea. Everything starts at the top. Concepting, development, branding, marketing, community building, and customer support begins and ends with you.
Is my app idea good?
I’m going to go out on a limb and say that your app idea sucks, sorry. Just kidding — kind of. The truth of the matter is that I’m the wrong person you should be asking. Validating your idea is crucial, but don’t ask your friends, family, or random people on Reddit — they’re not the ones that are going to be using your app. And most of them are just going to tell you what you want to hear.
Start initiating conversations with your target audience, but don’t flat out ask them if they would download the app because the answer is always yes. What people say is drastically different than their actions.
Have a free-flowing conversation about the app’s concept. Figure out what pain points exist, what makes them tick, what apps they care about, etc. The feedback you’ll receive will be more helpful than you think.
My two cents on ideas
I’ve found that there are a few (almost telling) ways to get a feel for a “good idea”:
Signs of a good app idea:
- It solves a real problem many people are challenged with.
- You, as the founder, are scratching your own itch by building a solution to a problem you faced.
- It saves people time. (The ultimate non-renewable resource)
- It’s backed by trends and data.
Signs of a bad app idea:
- Only you and your parents like it.
- Your target audience doesn’t like it.
- There’s little to no differentiation from the competition.
- The target audience isn’t big enough. (Real example: An audio tour guide paid app available in one city.)
I have a billion-dollar app idea.
This isn’t a question, but I get this as much as I do any other inquiry.
You don’t have a billion-dollar app idea. Your idea is worth nothing. Develop the app, build a viable business, and then tell me how profitable your social media app for social media influencers is.
Someone stole my app idea.
Boo-hoo. Build a better version of the app or come up with another idea.
Will my app fail?
It depends on what your definition of failure is, but most apps fail for one or two reasons — there is no market need, or there is a lack of branding. This will hurt your feelings, but it’s the most important section to pay attention to:
Market need
Do you understand how hard it is for an app to cram it’s way unto someone’s home screen — and stay there?
Let’s look at a few facts:
- The average app loses 77% of its DAUs within three days of installation.
- 51% of smartphone users don’t download any apps in a month.
- People only use an average of nine apps a day.
People do not need more apps on their phone. Okay, your app is all about providing value, but what exactly is it going to do that [insert top app name here] can’t?
And if you think you’re just competing in an app category/niche, you are sorely mistaken. You’re competing for screentime along with Facebook, Instagram, Apple, Netflix, Amazon, and Email.
Branding
Take a look at the apps on your home screen. All of them are branded. In the most basic sense, this means the value proposition is defined, and the app is visually appealing.
60% of the apps I deal with (give or take) have no real value proposition, and on top of it, they look like they were designed in Microsoft Paint 95.
Apple takes branding seriously. Meeting needs through usability and design is the company’s bread and butter. The apps the company features exemplify that core belief. If you launch an app that looks like it was built on a drag & drop platform and expect it to skyrocket to the top of the charts, you’re in for a world of disappointment.
How much does it cost to develop an app?
The answer will drastically change based on who you’re talking to, their expertise, where they’re based, and the overall complexity of your app. There are many variables involved, and even when you have an estimate, the number will be higher than that (new features, support, maintenance, etc.)
But for the sake of simplicity, I’m going to lay out four common development options.
1. Build it yourself
The only thing developing an app yourself costs is your time (and sanity.) If you’re a hobbyist and are looking to take on a cool side project, taking development into your own hands is a solid route.
Obviously, the overall look and feel of the app are predicated on your development/design skill-set, so if you’re just learning how to code, don’t expect stunning results.
2. Develop it in-house
In-house just means keeping app development within your company. Examples of this would be your co-founder developing the app or bringing a developer onboard part/full-time.
Example: Dumpster
Back in 2011, three developers worked night and day alongside their day jobs to build the first ever “recycle-bin” for Android users, Dumpster. And in 2014, they built a company, Baloota Applications, which is now each of their full-time jobs.
The app now boasts over ten million users and is the prime example of an “in-house app” done right. When asked about what goes on behind the scenes, this is what Alik Hochner CEO, had to say:
“From our POV, a company cannot a make a real impact without establishing their own in-house development team.This requires one of the founders to be in charge of it and pay a lot of attention building this capability.
Recently we have started working with developers on a remote basis which with current remote tools it could be done really well. It requires working with our marketing and UI/UX experts, building together the wireframes and style guides; and breaking it down into development tasks. This is an ongoing process which we’ve been doing for the past four years.”
In-house development is the most rewarding development route according to most founders and developers I’ve spoken with, but it’s the most time-consuming for obvious reasons.
3. Outsource / Off-shore development
I once took on a rescue project where an established business outsourced development overseas and ended up losing $100k for a barely functioning app. But I’ve also worked with a startup that off-shored development and the app turned out gorgeous — not to mention the fact that it has over two million users.
There is no right or wrong answer to the “outsourcing development” debate. It just depends on what you value more. Here are a few pros and cons:
Pros
- More affordable: The main benefit of outsourcing development is that it’s a lot cheaper than working with a US-based agency.
- Options: You’ll have the ability to choose from a worldwide pool of specialized developers and designers.
- Faster time to market: It takes about 3–5 months for US-based agencies to take a concept from an idea to the App Store. Outsourcing, in most cases, is faster by a couple of weeks.
Cons
- Miscommunication: This can be anything along the lines of timeline/deadlines, time differences, language barriers, technical issues, etc.
- Quality/Control of work: Managing and overseeing a team overseas through Slack, Skype, and Asana is no joke.
- Not so fun surprises: I almost feel bad for laughing at this, but it’s true: A previous client of mine off-shored app development and found out the team was outsourcing their development — and that agency was also outsourcing development.
4. Work with a US-Based Agency
Working with a US-based development agency is the best case scenario because agencies have the most access to valuable resources (skills, tools, people, etc.)
If you’re a solo entrepreneur, development will cost more than your car. These well-polished, made in the USA apps can cost anywhere from $30k-$100k+.
However, working with an agency is the ideal development option for established businesses. The process is straightforward in every aspect, whereas, vetting and dealing with “not so experienced” developers is time-consuming and costly. Accountability is key.
The best way to find top rated, US-based agencies is through Clutch.
Can someone develop my app in exchange for equity?
The real version of this question is, “Can you develop my app for free? I’ll share some money with you if it gets featured on Tech Crunch.”
Under the right terms and conditions, there’s a slight chance you can find someone to develop your app for free. As the idea person, you’ll be exhausted 24/7 — someone needs to do some work! That someone is called a technical co-founder.
The easiest way to land a co-founder is through your existing network. The co-founder will need to share your same passion and have enough time to justify working on it. It’s a long shot, but if you’re surrounded by entrepreneurial, like-minded people, the odds are in your favor.
“50/50 agency splits”
No reliable app development agency will work for free in exchange for a stake in your business.
Back in 2014, entrepreneur and visionary Yasmine Åkermark was on a mission to popularize bartering/skills exchange through a mobile app, Tibba.
After researching, she and her co-founder Erica, decided to split equity with an agency to bring their vision to life.
“When we developed our app Tibba, we went for a partnership with a local Sweden app development company. Unfortunately, they had a very different idea of the timeline. This is of course due to miscommunication in the team among other things. The app got delayed, and the team fell through.”
After dealing with a less than ideal situation, the two shifted gears and went the freelancer route:
It’s cheaper, and although you have to manage it more, you aren’t taking the risk of spending way too much money. I also think it’s important to be apart of the development process — your chances of succeeding will be much higher.”
After learning from “failure,” Yasmine is now working on Sharehive, a marketplace where you can find reliable app developers and creatives.
How do I get funding?
If you weren’t born into wealth and didn’t attend an Ivy League college — don’t worry, you can still get funding.
- Work harder/Bootstrap: Put your money where your mouth is. Take on a part-time job, pull from your savings account, ask friends & family for cash, don’t go to Chipotle every Saturday, you get the idea.
- Contests: There is such a thing as app idea contests, and it’s exactly what it sounds like. They’re extremely competitive, but if you really are the next Evan Spiegel, you’re golden!
- Crowdfunding: Throw your idea on Kickstarter or Indiegogo. It’s not the best route, but it’s risk-free. You’ll be able to gauge interest while you’re at it as well.
The dangers of loans and credit cards
Many experts suggest taking out loans and utilizing credit cards, but I’m not an advocate of going into debt for an idea you had when you were putting on your pants this morning.
Never invest what you can’t afford to lose.
Can I raise VC money?
According to Fundable, 0.05% of startups are funded by VCs. And less than 1% of startups are funded by angel investors.
The investing side of business isn’t just a rich white guy throwing money at you.
Most investors spend their time researching and having coffee with entrepreneurs, and other people/investors working in tech to understand what’s really happening behind the scenes. They also do so to develop their own deal flow and points of view on different technologies and trends.
Once they identify a promising company, only then do they get into the investing process. Which again, is more meetings to understand the business model and traction. Aka: a lot of people using an actual app/prototype/MVP.
How do you market an app?
This seemingly basic question entails a lot more than just Facebook ads. It’s also why having a “constantly learning” marketer/business-savvy co-founder on your team is a smart idea.
Solution and Target Audience
The AMA definition of marketing is:
“…the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
The first thing you need to nail is your value proposition (benefit of using the app) and who your target customer/audience is. And contrary to popular belief, your target audience is not everyone. When you create something for everyone, you create nothing for anyone.
Three Basic App Marketing Laws
“The 22 Immutable Laws of Marketing” by Al Ries and Jack Trout is a must read. The book delves into the fundamentals of marketing and explains them in plain English.
A common misconception about marketing is that you need to constantly be innovating. Which is true, but sacrificing fundamentals for flash isn’t effective. Which is why I instead, stick to pure intuition and these three tried & true basic marketing principles:
1. The Law of Perception
App marketing isn’t about your app; it’s about how people perceive your app. They’re only interested about what’s in it for them — not the features you’re obsessed with.
Music apps
Is Spotify better than Pandora? The majority of smartphone users don’t understand the technical differences (feature set) between the two, but the majority of smartphone users have a perception of which app is better.
Marketing shapes perceptions. Every touch point needs to be on brand (copy, visuals, messaging, etc.) By shaping people’s perceptions, you’ll establish your position in their mind.
Pro tip: Don’t refer to your app as the [Uber] for [industry]. Claim your own tagline.
2. The Law of Category
If you can’t be first in a category, set up a new category, you can be first in. Also referred to as differentiation/niche. Again, there are two million apps in each store; you won’t be the first to market. The leading apps compete on their differentiation points, not basic concepts.
Dating apps
For example, take dating apps (dating used loosely). They all serve the same purpose, which is matching two people with the same intention-ish. But the top apps mark their territory, so it’s not a “generic app” race to the bottom.
Look at Bumble vs. Tinder:
Tinder
- Value proposition: “Swipe. Match. Chat. [Date.]”
- Differentiation: Tinder was first to market with the swiping (like or dislike) functionality. The app differentiates through that main feature and the fact that it popularized and made online dating socially acceptable.
- Audience: Students (83.6% audience share), interested in experimentation/new experiences
Bumble
- Value proposition: “Women make the first move.”
- Differentiation: Bumble’s point of differentiation is its value proposition. Only women can initiate conversation on the platform.
- Audience: Women, interested in feminism/politics/education
3. The Law of the Mind
It’s better to be first in the mind than to be first in the marketplace. Do you see the recurring theme?
“If marketing is a battle of perception, not product, then the mind takes precedence over the marketplace. Thousands of would-be entrepreneurs are tripped up every year by this law. Someone has an idea or concept he or she belives will revolutionize an industry, as well it may. The problem is getting the idea or concept into the prospect’s mind.”
Ridesharing apps
Lyft (formerly Zimride) was the first ridesharing app to market. Uber came along two years later in ’09. Then in ’11, Zimride sold to Enterprise, and the team pivoted into Lyft.
Which of the two is used as a verb?
And after the category is claimed, the battle for mindshare is fought with one weapon— money. If you plan on competing with Uber you better have one heck of a marketing budget.
App marketing tactics
There is no one size fits all list of “best strategies.” You can run any paid or free marketing tactic you want. Marketing is about trial and error. Try new things, see what works, and stick with it. Try new things, see what doesn’t work, and drop it.
Just watch this video from Steve P. Young, CEO of AppMasters.
How much money do I need for marketing?
Take a look at the infographic below.
The top app store earners, those who earn $50k+ in revenue, set aside $30k as an average marketing budget. Not to mention, 80% don’t make enough money to keep their business’s afloat.
If you take a closer look, you’ll see that those numbers date back to 2012. Imagine what 2018 numbers look like.
The average client hiring for an “all-in-one” app marketing project (ASO, ads, PR, etc.) on Upwork has a tight budget of roughly $700-$1k. And to that, I say, LOL.
When it comes down to it, you’re going to get what you spend.
For kicks and giggles, let’s say you have a goal of one million users and want a baseline budget. To come up with that number, multiply the average cost per install ($1.64) by one million. Obviously, that number isn’t accurate, but you get the point.
TL;DR
- Your app idea probably sucks.
- Developing a successful app is possible, but to what extent?
- If you’re not losing money and time you can’t afford, build whatever type of app your heart desires.
- If you want to startup, but you’re 50/50 — don’t do it. Starting an app business is the same thing as starting a “regular” business. It’s time-consuming and expensive.
I’m in no way trying to belittle you. I would actually love to see you succeed and prove me wrong. But after four years of dealing with “startup apps” and ideas, I thought it was time to throw my personal opinion out there. Take it for what it’s worth or don’t.
Please direct any questions, comments, or rants to the comments section or carissalintao.com.
Special thanks to Alik Hochner, Yasmine Åkermark, and Tejaswi R for their time in helping me with this piece.
