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Ever wonder how apps make billions of dollars a year?

Well if you have an app and already of some until success and now seeking to figure out how to really maximize sales and profits..

Then this episode is for you.

Over the past 8 years, after analyzing and working with some of the most highly profitable apps, my team and I at our agency, PreApps, have developed a proven program that can exponentially increase sales and revenues to an app. We call it the “10X Revenue Model.”

And that’s what’s i’m going to be sharing with you today. This model uses the same methods that billion-dollar Apps such as Tinder, Angry Birds, and Uber have incorporated to produce millions in additional revenue.

Our “10X Revenue Model is comprised 4 simple but powerful steps. And I’m going to break down each of these steps, in a 2 part series.

So in this episode i’m going to share 2 steps of our 4 steps model.

Our clients have incorporated these techniques resulting in 10X revenues, and I trust, they will work for you as well.

So stay tuned!

Welcome to part 1 of our 2 part series that shares our 10X revenue model.

Please note that if you are just starting our and still trying to first figure out your business model, then this episode is not for you.

What we are talking about today, are ways to 10X revenue for an app that ALREADY has a PROVEN business model and already getting sales.

Once your App has gained some traction and you have established a profitable business model, you can then focus on maximizing your revenue opportunities.

That said.. Let’s jump in!

According to analytics agency, App Annie, Worldwide app downloads jumped to 204 billion last year. With emerging markets like India and Brazil driving a lot of that growth.

Of the 204 billion downloads, total consumer spending, on mobile platforms, reached a record $120 billion last year. To give you some perspective, that's more than twice as much as consumers spent in 2016.

Consumers spent $120 Billion last year inside the apps that they use.

So my question to you is.. How much of that $120 Billion spent, went to you and your app?

Did you get a big chuck of that? If you did that’s fantastic. But unfortunately i’m sure a majority listening right now did not.

The harsh reality is that although there Billions in App revenue paid out every single year, just 1.6% of the 3 million Apps available today, earn the majority of all this revenue.

Roughly 60% of Apps make less than $500 a each month. And 23% make less than $100 per month.

According to BusinessofApps.com, only 1.6% of all Apps are earning more than $500,000 per month… 1.6% of apps make up the majority of all sales.

So what is it that the 1.6% of app businesses are doing right, that allows them to earn a majority of the $120 Billion paid out last year?

After analyzing the most highly profitable apps, we have uncovered several proven ways to exponentially increase revenues by using a system we call the “10X Revenue Model.”

And in todays episode i’m going to share 2 or the 4 steps model.

So let's get started..

Step #1 of our“10X Revenue Model” is all about Increasing Your Sales Conversions.

This process, requires tweaking how you market and present your offerings. Based on the category your App is in, it’s about optimizing the sales copy of your in-App purchase offers…

Increasing your sales conversions involves focusing on increasing the number of free users into paid users.

When it comes to in app purchases, you can expect anywhere between 2%-10% of your users to convert into purchasers.

The key, is to strategically guide your users to your offer. Don’t just make it easily available, but make your offer truly irresistible.

Many developers make the mistake of having their In-App purchases buried within the App making them hard to find or even difficult to understand.

Consider how you can improve the language, of your offers, to best convey your benefits, versus your features.

And here’s what’s important in order to maximize sales.. When introducing users to your offers, it is important to entice them towards your higher priced option.

Often the best way is with a perceived discount.

What most apps get wrong us . hen it comes to In-App purchase options, many simply lay out different offers with each one going up proportionately with the same price increase for each option.

Instead, we have found that by modifying pricing options to have one option with a higher perceived value, at a discounted price, can drastically boost profits.

Lets look at Angry Birds for example.

Their in app purchase option are currently laid out as:

• 80 Points: $0.99

• 400 Points: $4.99 • 2100 Points: $9.99

As you can tell the value of points are disproportionate. They do this on purpose.

The third option (2100 Points: $9.99) is greatly discounted and has a far greater perceived value.

They know that a majority of users will opt for the more expensive option because, it has a greater perceived value.

It is essential to understand the science behind how the most profitable Apps make money.

It’s reported that the Angry Birds Franchise, makes roughly 30% of their sales from In-App purchases, and is currently valued at $2 billion-dollars.

One thing to consider is that users should not have to calculate your great deal. Tell them! Explicitly highlight that your premium offer is 80% off.

Too many Apps offer a discount but don’t explicitly highlight it. The result is they miss out on increased conversions and profits.

Multi-millionaire entrepreneur and legendary copywriter Dan Kennedy once said..

“You’re just one sales copy away from being rich.” I believe that just a few simple tweaks to your marketing language and your In-App purchase offerings, can be the difference between making hundreds of dollars a day in revenue or thousands of dollars in additional revenue per day.

It’s all about how you present and offer to your users.

And the key to finding the best marketing language and pricing layout is to do A/B testing. You must test and see what works best by constantly improving your offers.

Remember, you can’t improve what you don’t track.

Alight Step #2 of our “10X Revenue Model” is Increasing Your Prices & Premium Offerings

Most Apps undervalue themselves by not having premium offers, and therefore never, reach their full revenue potential.

What is the perceived value you are offering? How do you maximize that value to your user?

Boosting your prices and providing premium offers can be easily incorpora- ted and drive extraordinary results.

If you increase your prices, you will increase sales.

Increasing your prices may sound like common sense, but I assure you, it’s not common practise.

Users that are more inclined to make In-App purchases are also willing to pay more for them.

Here are some examples:

Angry Birds offers 13,000 Points for $99; Tinder offers 60 Super Likes for $40; and Uber offers the Black Car starting at $20. Does your App offer a one time premium option?

When it comes to your business model, what’s your most profitable items you offer your users?

What would happen if you doubled or tripled your price?

Do you offer a $100 items like Angry Birds does? Ever wonder how the app is valued at Billions of Dollars? This is one of those reasons..

Think about it… Angry Birds charges $100 for an in app purchase when the majority of apps are struggling to offer a $10 option.

It’s no wonder why they dominated the market and continue to do so.

And btw, if you need help marketing your app or your business model… You might be interested in applying to speaking with one of our App Growth Specialists to see how our Agency, can help you reach your app goals.

If you’re serious about investing in the success of your app and, you can apply for a free app strategy call, where one of our app growth specialist will connect one on one on a call and drill deeper into your app, and craft a step by step plan in order to reach your download goals.

If you want access to that just go ahead and click the link in the show notes or head over to PreApps.com.

Alight so to recap, Step #1 of our“10X Revenue Model” is all about Increasing Your Sales Conversions.

Step #2 is all about Increasing Your Prices & Premium Offerings.

After this episode I encourage you to take a second and consider how you can apply these simple but powerful steps to your app and begin to maximize your sales and revenue.

It’s my hope that you;ll be on track to getting more of that $120 Billion Dollars in app sales each year.

In our next episode i’m going to share the next 2 steps to our 10X revenue model.

This will be an episode you won’t want to miss!.. So stay tuned!

As always, I appreciate you, and encourage you, to live a bigger life, and a bigger app business as you continue to make your app dream a reality.

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