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How To Make Money As an Independent Developer

itwbennett writes: A new survey of 13,000 developers in 149 countries by U.K.-based research company VisionMobile compared, among other things, the most popular versus the most lucrative revenue models for four groups of developers: those focusing on mobile apps, cloud services, the Internet of Things, and desktop apps. Among their findings for mobile developers: While advertising is by far the most popular revenue model, only 17% of developers who rely primarily on advertising make more than $10,000 per month from their apps. By comparison, 37% of those who make their money by e-commerce (selling real-world goods and services) make $10k per month or more.

56 comments

  1. The Secret by Anonymous Coward · · Score: 0

    Ads, with an option to buy a $5 ad-free experience. It's sure been working for me! Now excuse me while I go play with my 8 model girlfriends.

    1. Re:The Secret by Nidi62 · · Score: 1

      Now excuse me while I go play with my 8 model girlfriends.

      So.....do you just have 8 mannequins set up around your house?

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    2. Re:The Secret by zlives · · Score: 2

      nope just 8 gloves with different names

    3. Re:The Secret by U2xhc2hkb3QgU3Vja3M · · Score: 1

      Still too expensive. He just named each of his fingers.

    4. Re:The Secret by __aaclcg7560 · · Score: 2

      The pinkies are jail bait. Best to leave them out.

    5. Re:The Secret by codeButcher · · Score: 1

      Still too expensive. He just named each of his fingers.

      He invented the Octal system. Or he is related to Mickey Mouse. But I repeat myself.

      --
      Free, as in your money being freed from the confines of your account.
  2. Free Markets Work: Sell what others want! by BoRegardless · · Score: 2

    If there is nothing you find to sell, then create a new product!

  3. How about porn? by Anonymous Coward · · Score: 0

    Is there money in that?

    1. Re:How about porn? by Anonymous Coward · · Score: 0

      Some would say that the internet is for porn.

    2. Re:How about porn? by Anonymous Coward · · Score: 0

      Usually it's a penis and not money in it but, hey, whatever floats your boat.

  4. Rewrite IE 8 apps by rsilvergun · · Score: 0

    Microsoft is dropping support on January 26 2016. There's gonna be a ton of apps that have to be rewritten when the patches stop coming.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Rewrite IE 8 apps by Anonymous Coward · · Score: 0

      They're corporate mostly. So, they won't change until it's already too late.
      To make money off of them, you have to sell them the concept first. Go to them, instead of waiting for them to find you. That's why as an independent, you have to be not just the developer, but salesman as well.

      I'm curious though where do independents that do a lot of contracting or consulting rank.

    2. Re:Rewrite IE 8 apps by Anonymous Coward · · Score: 0

      Or IE6. I work for a Microsoft contractor, and we still are required to use several internal sites that only support 6. Most of us still run XP, but we're moving to Windows 10 and running XP under Hyper-V. The virtual machines are slow as crap, so it's annoying, but it's better than trying to get all of the drivers working on XP for a new PC.

  5. What does that mean? by Anonymous Coward · · Score: 0

    "mobile developers relying on e-commerce who primarily target iOS devices make the most" What does that mean, a developer who builds e-commerce software for iOS? What the heck would that be?

    1. Re:What does that mean? by darkain · · Score: 1

      eBay, Amazon, AirBNB, Pizza Delivery, Airlines/Trains/Public Transit... just to name a few. Now you can pre-pay and pre-order with the Subway app. Starbucks offers the ability to pay tips with a popup notification right after you swipe your starbucks cards at a register at their stores. GreatClips offers appointment signups via their app, plus discounts for people who use it.

  6. This is not how it works by Anonymous Coward · · Score: 1

    You are so naive, it is not how things work. The big money makers don't listen to what people want, they tell people what to want and then provide that cr@p.

    I don't think there is even 1% of the people who actually know what to want. I mean such that can provide solid arguments on what they want and why they want it.

    1. Re:This is not how it works by aaaaaaargh! · · Score: 1

      I have this weird 'problem' that the products that I want and/or need tend to not exist or are extremely hard to get, even though they are technically feasible and shouldn't even be expensive. Kind of odd but I've gotten used to it. Saves me from spending too much money.

    2. Re:This is not how it works by Sowelu · · Score: 2

      This is what got me into game design in the first place. Then I realized it was a lot harder than middle-school-me expected. A couple decades later, and people who didn't give up are finally making the things I wanted in the first place...I'm okay with this.

  7. Apples vs Oranges by Alok · · Score: 2

    How is it fair to compare advertising to selling physical goods, considering that it is so much easier to plug in an ad api for any developer who thinks he could make a few bucks off his hobbyist app?

    I'm not at all surprised that a far lower percentage of the ad-supported devs make good money, a vast majority are probably those who saw some niche need and created a small app, maybe for themselves - then added in some advertising to get an easily acquired income stream. By contrast, those who actually have warehouses or tie-ups with stores to sell physical products have put in far more effort in creating their product, and probably would not do so without the expectation of a good RoI.

    The article also talks of how IoT isn't very lucrative, not too surprising since its not even standardized across vendors (afaik) and needs more public awareness.

    1. Re:Apples vs Oranges by dcollins117 · · Score: 1

      The article also talks of how IoT isn't very lucrative, not too surprising since its not even standardized across vendors (afaik) and needs more public awareness.

      IoT is a solution in search of a problem, IMO. I don't necessarily want my toaster posting on Facebook every time I make me a sandwich. I know what's in my fridge without looking. I have no need to adjust the temperature in my home when I'm not there.

      You can probably tell that I'm a late adopter of technology. This is one I can't fathom ever getting. I just don't get it.

  8. In other words it takes money to make money by Anonymous Coward · · Score: 0, Funny

    Shocking. Next thing you know, we'll see this headline:

    Scientists Confirm Water To Indeed Be Wet

  9. Do what most other "indie devs" do by Anonymous Coward · · Score: 0

    And copy someone else's product.

    1. Re:Do what most other "indie devs" do by UnknownSoldier · · Score: 1

      Hey, it worked for Notch and Minecraft ! /me ducks

  10. Revenue and profit are not the same thing by PraiseBob · · Score: 4, Insightful

    Revenue generated by advertising is almost pure profit, since you've already built the product and only have ongoing maintenance.
    Revenue generated by ecommerce has way more overhead in potentially shipping fees, material costs, and/or labor costs for those goods and services.

    This summary and the article seem to use revenue & profit interchangeably, which is not accurate and really tells us nothing.

    1. Re:Revenue and profit are not the same thing by CastrTroy · · Score: 1

      Exactly. If you build an app, and nobody buys it, you have pretty much just wasted time, but probably aren't out much in terms of cash. If you make a physical product and nobody buys it, you're probably out a lot of money at that point. This is why everybody wants to get into software development. There's a huge potential to make a product once, and sell it a million times, without any ongoing costs. No physical product allows you to do that.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    2. Re:Revenue and profit are not the same thing by Anonymous Coward · · Score: 0

      No physical product allows you to do that.

      Two words: Replicating Nanobots^TM

    3. Re:Revenue and profit are not the same thing by behrooz0az · · Score: 1

      self replicating nanobots, FTFY. 2 is ambiguous

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      Moderating "-1, Disagree" is simple censorship. Have the guts to post your opinion. -- Spazmania (174582)
    4. Re:Revenue and profit are not the same thing by tlhIngan · · Score: 2

      Revenue generated by advertising is almost pure profit, since you've already built the product and only have ongoing maintenance.

      Ongoing maintenance is expensive - remember, advertising works if you can keep the eyeballs looking, and if you have a game, that constantly means adding new content. It's not a sit-back and watch the money roll in deal. Once you release, you have to have new content in mind and develop for it, so when people get bored of the current content, you release an update and keep them addicted, and thus keeping money coming in.

      I have this weird 'problem' that the products that I want and/or need tend to not exist or are extremely hard to get, even though they are technically feasible and shouldn't even be expensive. Kind of odd but I've gotten used to it. Saves me from spending too much money.

      It's not really a problem. It's that you're unprofitable. Yes, someone could build the product you want to your specifications, but marketing probably determined that the market of those who want that particular thing is too small. That makes the product expensive after engineering and profit margin/ROI even if it's really cheap to build, which means it isn't done.

      The GOOD news though is thanks to the likes of Kickstarter and such, when others come up with the same idea, they can be built and often for low runs at that. Some people use Kickstarter as a way to do market research - does the market exist for the product - and how enthusiastic are they about it. Others use it to release all sorts of nifty gadgets that can scratch your particular itch.

      Heck, maybe you want it bad enough that you can do a prototype and then do a kickstarter to see if someone else wants it.

    5. Re:Revenue and profit are not the same thing by Qzukk · · Score: 1

      Nonono, "self" replicating means that they don't have to come back to you to buy the second one.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    6. Re:Revenue and profit are not the same thing by Dutch+Gun · · Score: 2

      Exactly. If you build an app, and nobody buys it, you have pretty much just wasted time, but probably aren't out much in terms of cash.

      They're essentially the same thing unless you consider your time valueless. Every hour you spend working on your own software is an hour you're NOT getting paid to work on someone else's software, and the bills don't stop piling up just because you're not earning anything.

      --
      Irony: Agile development has too much intertia to be abandoned now.
  11. Re:itwbennett? by XanC · · Score: 1

    It's not Haselton. He would have written about 10 times as much, with the word "I" being by far the most common.

  12. Money shot by tepples · · Score: 1

    Usually it's a penis and not money in [porn]

    But doesn't money cum out of a penis? If not, why the heck do they call it a money shot?

  13. Platform overhead by tepples · · Score: 1

    If you build an app, and nobody buys it, you have pretty much just wasted time, but probably aren't out much in terms of cash.

    Some of that depends on how much a particular app store's entry fee compares to the wages in your country. Google Play Store is a lot cheaper to get into than the App Store, which requires a second computer (a Mac) and a $99 per year developer license in addition to the 30% cut that both take. And both are far cheaper than developing for a game console. True, a lot of residents of the most advanced economies can afford to drop a thousand dollars on a hobby that turns out to flop. But in less developed countries, the cost of a Mac mini, iPad mini, and developer license is a lot of money, especially if your country's currency is undervalued due to lack of a history of exports, or your country has an import duty greater than 100% like Brazil has.

    There's a huge potential to make a product once, and sell it a million times, without any ongoing costs. No physical product allows you to do that.

    Print-on-demand has been around a long time for books, CDs, and T-shirts, and now it's stuffed toys too (source: happytoymachine.com). As additive manufacturing matures, this will extend into other markets. A MakerBot Replicator is cheaper than a Mac Pro now.

  14. Microtransactions? by netsavior · · Score: 1

    I don't even see a single mention of microtransactions. I know it is dominated by candy crush and clash of clans, but it is possible for the random flappy birds to start making serious lottery money for an indie developer.

    The highest grossing apps are all doing it through microtransactions. As much as you and I and everybody hates them, they are here to stay and SOMEBODY is paying 99 cents each for all those "boosts" nobody admits it, yet microtransactions are king(candy crush pun intended).

  15. Ecommerce, huh? by mark-t · · Score: 1

    So basically, if you want to make money, you have to have something to sell that people want to buy.

    wow. that. is, such. a. surprise.

  16. Here's how you make money by tylersoze · · Score: 2

    I've found the secret, you have other people pay you to make their apps for them. I've been making a pretty good living from that going 5 years now.

    1. Re:Here's how you make money by Zargg · · Score: 1

      Can you give some examples? Like, what was the simplest, stupidest app you were asked to develop and how much did you make? How many fart apps featuring the persons own farts?

    2. Re:Here's how you make money by Anonymous Coward · · Score: 0

      In another 5 years your soul will be crushed and you will cry frequently in the fetal position.

    3. Re:Here's how you make money by cerberusss · · Score: 1

      I've found the secret, you have other people pay you to make their apps for them. I've been making a pretty good living from that going 5 years now.

      Exactly. I've started last year, and like any on-site contractor, you get paid pretty well and there's an amount of freedom in picking a client.

      --
      8 of 13 people found this answer helpful. Did you?
  17. Utilities, not games... by mlts · · Score: 4, Informative

    The same advice was given to me back when MS-DOS and Windows was king. Make utilities, not games. A game only has a small chance of making it big, and even then, you have to make sure to keep your market share or else someone will make a clone and grab it all, like how Candy Crush took over Bejeweled's market niche.

    Utilities, on the other hand, tend to have a long tail. They may not be blockbusters, but they can be a constant, reliable source of income. For example, Raymond Lau's StuffIt for the Mac is still kicking, similar with WinRAR. Make sure that your utility is in its own territory, and doesn't fall completely within another group, as there are plenty of unarchivers.

    There are plenty of niches for a utility these days written for smartphones or tablets... a few examples:

    1: PGP/gpg encrypting/decrypting and key management. Yes, there are other utilities out there, but using iOS's KeyChain or Android's KeyStore coupled with the fingerprinter scanner as a way to confirm signing/decryption once the key is unlocked is something not done yet. Using the OS to securely store keys isn't as secure as a HSM, but it is far better than just leaving them sitting on a drive or filesystem, even if they are encrypted.

    2: An implementation of PhonebookFS. That way, the same directory on a cloud provider can have many different layers of files, and even if all the layers are known, there is still chaff for plausible deniability.

    3: A utility that archives loads of files to Amazon Glacier (preferably with some sort of encryption.) It also would retain a robust index, so if a file needs retrieved, it can be gotten with as little data having to be downloaded as possible.

    4: A utility similar to #3, but can work with any offline media, so if one is using the program on a computer, it can burn DVDs, and keep an index to find files (with their creation times) no matter where they are. The only thing similar would be Retrospect, but they have very limited support for optical drives, and zero support for USB BD-R drives.

    5: A superset of utility #3 and 4, but is able to cycle and copy files automatically to new media every so often (and cloud providers can be considered media). This way, something sitting on a corner of hard drive forgotten eventually winds up being copied onto newer media, to minimize the chances of bit rot and time killing the data. Error correction records and redundancy are important as well. Pretty much a "meta" zpool scrub that would occasionally prompt for offline media, check and copy it somewhere.

    6: A utility that does a share split of a public key among peers/clients of the app. This would either expire access to a file (where requests for a key would be declined after a time/date), or deny access before a certain point in time. Because it is distributed, an attacker would have to create a bunch of nodes that hopefully are the ones chosen for stashing the pieces of the decryption key.

    This would allow one to guarantee that data is expired and inaccessible after a time (financial/hospital archives) as well as ensure data that should not be seen until a future time is kept secure.

    7: A duress mode utility that can do proper notifications and shutdowns if triggered.

    tl;dr... there is a lot more for app writing than just trying to get a game out.

    1. Re:Utilities, not games... by Anonymous Coward · · Score: 0

      similar with WinRAR

      I've found the guy who actually bought WinRAR!

    2. Re:Utilities, not games... by Anonymous Coward · · Score: 0

      As a devil's advocate, what's wrong with WinRAR?

      It is better to be the person who does a utility than joining the herd in writing yet another fleshlight app, then wondering why nobody is buying it.

    3. Re: Utilities, not games... by danbob999 · · Score: 1

      Nothing wrong. It's just that 7zip is just as good and free.

    4. Re:Utilities, not games... by toddestan · · Score: 1

      Nothing, really. It's just everyone I knew, including myself, never registered and just clicked through the nag screen. Later, most switched to 7zip.

  18. Job or hobby? by petes_PoV · · Score: 4, Insightful

    The report tells us that most developers make less than $500 / month. This is clearly not a sustainable income (except in a few countries) so we must suppose that these developers are not in it as a way of making a living. They must have some other means of earning a crust if they aren't still living with one or more parents.

    This puts the majority of developers into the "hobbyist" category. They like to write "code" and if someone pays them a small amount in addition to the fun they get then that's a nice bonus. But that's all it is.

    But from the users' perspective, it also means there is no security in the product they use (or buy - even if it's 0.99 ), since these hobby-programmers could easily lose interest, get girlfriends, choose not to fix bugs or provide any level of support that doesn't line up with their hacking / coding motivation. So while these apps cost less than it does to get a kid to mow your lawn, it would appear that they should be considered "disposable".

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
    1. Re:Job or hobby? by srichard25 · · Score: 3, Insightful

      I'm trying to understand why people have any expectations whatsoever for something they paid 0.99 for. Most people tip a waitress more than that just for bringing food to their table.

    2. Re:Job or hobby? by Anonymous Coward · · Score: 0

      People have high expectations for a free app, and almost infinite expectations for a 99 cent one.

    3. Re:Job or hobby? by kipsate · · Score: 1

      get girlfriends

      You must be new here.

      --
      My karma ran over your dogma
    4. Re:Job or hobby? by Half-pint+HAL · · Score: 2

      The report tells us that most developers make less than $500 / month. This is clearly not a sustainable income (except in a few countries) so we must suppose that these developers are not in it as a way of making a living. They must have some other means of earning a crust if they aren't still living with one or more parents.

      That's an unsafe supposition. I've known several people who dedicated themselves for months fulltime to developing apps that in the end made so little money that they didn't cover the Apple developers' programme membership fees. It's a feature of every "goldrush" that for every one person who hits the motherlode, there are dozens of others who bankrupted themselves dynamiting ton after ton of worthless rock.

      --
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  19. Income per app? by Anonymous Coward · · Score: 0

    However, only 17% of developers who rely primarily on advertising make more than $10,000 per month from their apps, while 72% make less than $5,000 per month and 51% make $500 or less.

    I guess that's total income from all apps, not average income per app. But the article isn't clear on that point.

    Wouldn't someone who wrote two apps have twice the income (on average) as someone who wrote only one app?

  20. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  21. I'm confused already by null+etc. · · Score: 1

    According to the infographic, the most lucrative way to make money with desktop apps is to sell services, and the most lucrative way to make money with cloud services is to license client software. Does this seem backwards to anyone?

    1. Re:I'm confused already by Anonymous Coward · · Score: 0

      the most lucrative way to make money when writing apps is to sell services, and the most lucrative way to make money when selling services is to license the client software

      FTFY.
      Yes, the most lucritive path would be to charge for a service and charge people for the client software.