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................................. 5 Earnings................................................. 4 The Co-founders .................................................. 18 2 ................................................................................................................................................ 2 Introduction ............................................................................. 16 Conclusion .................................................................................................................... 4 Our Applications .................................................................................................... 15 How One App Can Boost Another ..................................................................................................... 3 The Story of Free the Apps.......... 4 How the Company Started ....................................................................................................................................................................................................................................................................................................................................................................................................... 10 Can You Really Make Money from Free Apps? .........................................................................................................................................................................................Contents Copyright.................... 14 How to Make Money from Free Apps ................................... 1 Contents ....................................................... Legal Notice and Disclaimer: ....

and can mutually support each other with cross-promotional strategies.Introduction Have you ever wondered why there are so many free apps in the app store? Sure some people genuinely want to make apps for no other reason than the challenge. There are actually plenty of ways to do this. This ebook is about showing why and how free apps actually do make money. Here we will show you how you can best take advantage of this phenomenon. In fact there’s a very good reason why some people choose to turn their hard work into a free app. This ebook is meant to be used as a companion guide to our main book “How to Make iPhone Apps With no Programming Experience” which explains how to build the app which you will give away free—for profit. 3 . Paid is not the only way to go. But this is not nearly what most of the free apps out there are actually doing. or opportunity to make something funny or cool.

short. Nothing else. "Free the Apps!" was born. You only have to be creative enough to come up with an idea. We decided to use Admob and put an unobtrusive banner on the top of our app. We wanted to offer the application for free. are the co-founders of Free the Apps!. Apps range from simple. "Crop for Free" was a hit and became the #1 photography application in the Apple App Store for a few months. That's it. As San Diego natives and childhood friends. (We will go into detail about "why?" later). but we still needed a way to monetize it to cover our costs. It was even mentioned in the article "Bringing Big Smiles to iPhone Shutterbugs" from the New York Times. It was very simple. Moon Apps. Our success has provided us with the luxury of passive income and freed up more time to enjoy the things we love. so we decided to create an application to do this and only this for free. we started our entrepreneurial ventures together with a couple of simple ideas. Being avid iPhone users and fans of many photography applications. and sweet to complex and complicated. 4 . No bells and whistles. We started by outsourcing one application and have used the profits from that application to start many more. and Thinking Drone LLC. Quoc Bui and Michael Moon. Pici Apps.603 total applications.The Story of Free the Apps The Co-founders We. We currently have over 20 live applications that are earning us passive income in the Apple iTunes App Store. This manual will show you how to do the rest. The application allowed the user to select a photo and then crop it. From this. but useful. How the Company Started One of the objectives in our first application was to keep it simple. We noticed that the iPhone lacked the ability to crop photos. Hipposoft. Our most successful application up to date (1/20/10) has reached a high of rank #3 in the entire app store out of 145. we began creating apps in this category and branched out to other categories later on.

2009) Crop for Free is the icon for Photography (Aug 21. We have reached the #1 spot in Photography and the #1 spot in Utilities a number of times. The highest ranking we have hit was #3 overall in the entire Apple iTunes App Store.Crop for Free #1 Top Free Photography HDR for Free #2 Top Free Photography (Aug 21. The following are some numbers for three of our applications (two free applications and one paid). 5 . 2009) Our Applications Thinking Drone LLC currently has 35 applications on the Apple iTunes App store with over 30 million downloads (statistics as of 3/16/11).

634  Highest rank reached: #7 Overall.Flash for Free (statistics as of 3/16/11):  Highest downloads in a single day: 78. #1 Top Free Utilities Flash for Free #13 Top Free Overall (Aug 21.752  Total Downloads All time: 3. 2009) 6 .522.

Green Screen Studio (statistics as of 3/16/11):  Highest downloads in a single day: 242 (at $2.514  Highest rank reached: #13 Top Paid Photography 7 .99)  Total Downloads All time: 25.

697. 2009) Convert for Free is the icon for Utilities (Nov 23. 2009) 8 . #1 Top Free Utilities Convert for Free #3 Top Free Overall (Nov 23.785  Highest rank reached: #3 Overall.443  Total Downloads All time: 8.Convert for Free (statistics as of 3/16/11):  Highest downloads in a single day: 101.

#1 Top Free Photography Panorama Free #21 Top Free Overall (Jan 15. 2011) 9 .Panorama Free (statistics as of 3/16/2011)  Highest downloads in a single day: 57.774  Total Downloads All time: 584.613  Highest rank reached: #21 Top Free Overall.

74 Apple: $3.52 10 .720.56 Admob: $121.68 Apple: $4. Let's face it! You want to know if you can make enough money for this venture to be 'worth it'.627.72 Apple: $4.45 Admob: $1.657.93 Admob: $301 Apple: $6.86 January 2009: Free the Apps! Google Adsense: $51.36 December 2009: Free the Apps! Google Adsense: $54.41 Moon Apps Hipposoft Total Earnings: $30.21 Apple: $3.57 Admob: $5.873. November 2009: Free the Apps! Google Adsense: $15.95 Admob: $1.435. Note that in November.020.35 Moon Apps Hipposoft Total Earnings: $63.851.151.850.884.769.845.600.36 Admob: $688 Apple: $9. So let's look at some numbers.781.927. Otherwise you wouldn't be reading this book.81 Moon Apps Hipposoft Total Earnings: $69.Earnings We know you are interested in the revenue involved in the iPhone application market. we began transitioning our ads over to Google Adsense.

454.175.54 Google Adsense: $38.59 Apple: $2.715.250.15 Apple: $2.January 2011: Free the Apps! Apple iAd: $ 30.96 Christmas this year was great for ALL developers in the Apple App Store! Shown above are the earnings for November 2009 to January 2010 and newly added January 2011. Google Adsense for mobile applications was not yet open to the 11 . From November to December.452.11 Admob: $ 2. we were personally invited by a representative from the Adsense team over at Google to join their beta program for mobile applications.188.668.94 Admob: $1.63 Moon Apps Hipposoft Total Earnings: $77.

public and was by invite only. so we were very fortunate to have been presented with this opportunity. We started 2010 with Dash of Color FREE as the #1 Photography app and many more applications in development. we started using Apple iAd. the only money we were still getting from Admob-FreeTheApps was from users who hadn't updated their applications to use Google Adsense. As you can see in January 2011. 12 . If you had asked me whether we could do this in early 2009 I would have said it was impossible. making apps with no programming experience whatsoever. The idea to outsource our business was the single smartest decision we made.000 a year business. By January 2009. Nowadays we run and maintain an $800.

Splash of Color FREE (Now known as Dash of Color FREE) is the icon for Photography (Dec 29. 2009) 13 . 2009) Splash of Color FREE (Now known as Dash of Color FREE) #1 Top Free Photography (Dec 29.

Paper Toss from Backflip Studios earns $500. There have been a number of apps that have made fantastic earnings from serving ads.000 a month from in-game ads.000 a month from Google Ads.000. Angry Birds from Rovio earns $1. even though they offer the game for free on Android devices.Can You Really Make Money from Free Apps? Paid apps are not the only way to earn money from the app store. 14 . even while giving away their app for free.

You may not have the potential to generate as much money as the #1 paid app. while also generating revenue from ads. Free apps is a very lucrative market. Ads. Figure 3: Google Adsense on Convert Units for Free 15 ..How to Make Money from Free Apps Since we now know that paid apps are not the only way to earn money from the app store. You will be able to earn income from both. The question becomes "But. we advise you to create both a full and lite version of your app. Pros & Cons of Free Applications) Like our recommendation in Chapter 3.how do I make money by giving away apps for free?" The same way Google generates revenue from offering Gmail for free. Your lite version will be promoting your full version. (see Chapter 3.. but you do have many of the benefits that paid apps do not.

Since Apple wasn’t making any money from free apps. (See Figure AB2) There are a handful of developers.There are many different ad platforms you can integrate. you can select the ad networks that perform best for your app and also make sure you have a high fill rate on your inventory. 16 . vary greatly depending on a number of factors. Both are integrated into our Adwhirl account. Another important advantage of using Adwhirl is the ability to change ad networks without having to update your application's code. The results have so far been really good for us." Fact: AdWhirl was acquired by Admob and Admob was acquired by Google. How One App Can Boost Another Cross-promoting across your applications can help them boost one another in ranking. We currently use Google Adsense and Admob. but allows you to implement multiple ad platforms. Being able to dynamically change ad networks. which is Apple’s answer to Google’s Admob. Their FAQ states. allows us to avoid the hassle of resubmitting the updated application and go through Apple's arduous process of approval. Fact: Apple bought out Quattro so they could compete in the mobile ad market. and we still recommend trying out different networks to see which ones will give you the best results. but the one we recommend using is Adwhirl. This will allow you to attract users to download your network of apps instead of just downloading one. and do. so we can dynamically mix and match the amount of ads shown from each. You really can’t go wrong with using both iAds and Admob. AdWhirl makes it easy to allocate a percentage of your inventory to the various ad networks and update your allocations in real time. While Apple came a little late to the party. Adhwirl is actually not an ad platform. These factors can only really be assessed though. by experimenting with both networks to see what gives you the best rates. Nowadays we also use iAds. "AdWhirl enables you to monetize your app inventory by allowing you to use multiple ad networks from within one client SDK. For example ads served with iAd can open on top of the app rather than opening the browser. they decided to break into this lucrative market by offering their own mobile advertising platform. that do this by creating a "More Apps" button across our apps. By utilizing multiple ad networks. they have already come out with some interesting features that Google doesn’t offer yet. as results can. including ourselves. the argument being that people tend to not click on ads because they then get taken away from the app.

The lite version of your app that you sell for free will reach a broader audience and attract them to your paid apps. Figure 4: More Apps Button Figure 5: Cross-promotin 17 .(See Figure 4) You can use both your paid and free apps to benefit one another.

of course. where it will end eill be up to you. This is but the start of a grand journey. there are many ways of getting your idea out there.Conclusion Our goal with this eBook was to open your eyes to the wide array of possibilities available to you with making money from free apps and using them to boost each other in the rankings. to find the solution that will work best for you. There are a million possibilities in terms of the variety of apps you can develop and tons of potential for big products. You are now equipped with the tools to make money from free apps and use them to cross-promote each other. 18 . Now. so you really should experiment as we did.