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The cost of software

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  • C Christopher Duncan

    After spending a few hundred bucks on an iPad Mini, I went through the process of setting everything up. Hadn't used Instapaper and wanted to give it a try so I set up an account on their website and then went to download the iPad app. At that point, I hesitated because of the cost. It was 4 dollars. Really. After a brief moment I realized how stupid that was and bought the app. It's nice getting stuff for free or on the cheap but this really bugs me. These days, software is supposed to be free and if you actually have to pay for it, gosh, it really shouldn't cost more than 99 cents or it's way overpriced. As a professional software developer, I can't imagine why someone would go to all the trouble of writing professional quality software and then selling it for a dollar. Or even 4. This is why I don't write mobile apps on the side. I mean, seriously, try getting a plumber out to your house for 4 dollars. [edit] Since this appears to be the common thinking... Guys - you're not going to sell a million copies. You'll be lucky to sell 100. Lots of studies on this and the fallacy of Gold Rush thinking. And so the question - who are these people who are willing to work so cheaply, and are they free this weekend to mow my lawn? :-D [/edit]

    Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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    Ennis Ray Lynch Jr
    wrote on last edited by
    #11

    About every other year I teach the neighborhood children a valuable lesson in economics. I get a knock on the door in May with a bright faced, optimistic youth begging to mow my lawn. Invariably I negotiate down from a million billion dollars to five dollars a month for twice a week mowings. They quit after the first try. Don't think I am taking advantage, I actually have a lawn guy who I pay; I just think kids these days don't understand what it costs to work and labor and earn. With regard to the app price; I think some of the sentiment is; it's just a buck as a marketing strategy. Many apps are hobbies and resumes so the allure of making a grand on top of the pie is an added bonus. With that said, I have looked into the economics of the market in consideration of developing an app and there is no reason a 100 hour app shouldn't sell for a dollar. You can do a lot in 100 hours with a novel concept. Now, would I spend the effort of an entire team for several years worth of work on that peanut, probably not, unless I had an investor and great marketing.

    Need custom software developed? I do custom programming based primarily on MS tools with an emphasis on C# development and consulting. "And they, since they Were not the one dead, turned to their affairs" -- Robert Frost "All users always want Excel" --Ennis Lynch

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    • E Ennis Ray Lynch Jr

      About every other year I teach the neighborhood children a valuable lesson in economics. I get a knock on the door in May with a bright faced, optimistic youth begging to mow my lawn. Invariably I negotiate down from a million billion dollars to five dollars a month for twice a week mowings. They quit after the first try. Don't think I am taking advantage, I actually have a lawn guy who I pay; I just think kids these days don't understand what it costs to work and labor and earn. With regard to the app price; I think some of the sentiment is; it's just a buck as a marketing strategy. Many apps are hobbies and resumes so the allure of making a grand on top of the pie is an added bonus. With that said, I have looked into the economics of the market in consideration of developing an app and there is no reason a 100 hour app shouldn't sell for a dollar. You can do a lot in 100 hours with a novel concept. Now, would I spend the effort of an entire team for several years worth of work on that peanut, probably not, unless I had an investor and great marketing.

      Need custom software developed? I do custom programming based primarily on MS tools with an emphasis on C# development and consulting. "And they, since they Were not the one dead, turned to their affairs" -- Robert Frost "All users always want Excel" --Ennis Lynch

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      Christopher Duncan
      wrote on last edited by
      #12

      Along those lines, if you sell 100 copies, which is probably a realistic figure, you're working for $1 an hour. I could be wrong, but I think you're worth more than that. :)

      Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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      • T Tim Carmichael

        Yes, the idea that you are going to sell 1,000,000 is wishful thinking. Having said that, we have downloaded and paid for a number of small educational application for our daughter over the past 4 years (learning to read, simple math, U.S.A. state geography, etc). These are not amazing apps by any means, but they served a purpose and we recommend them to our friends with young children and teachers at her school. Also, having an app from a given company/developer, we're more likely to go back to them for future apps. If they can build a reusable engine and generate new apps, why not? Has anyone on here successfully sold multiple copies of a mobile app? Tim

        L Offline
        L Offline
        Lost User
        wrote on last edited by
        #13

        Tim Carmichael wrote:

        Has anyone on here successfully sold multiple copies of a mobile app?

        Does "got ad revenue from" count as "sold"?

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        • T Tim Carmichael

          Yes, the idea that you are going to sell 1,000,000 is wishful thinking. Having said that, we have downloaded and paid for a number of small educational application for our daughter over the past 4 years (learning to read, simple math, U.S.A. state geography, etc). These are not amazing apps by any means, but they served a purpose and we recommend them to our friends with young children and teachers at her school. Also, having an app from a given company/developer, we're more likely to go back to them for future apps. If they can build a reusable engine and generate new apps, why not? Has anyone on here successfully sold multiple copies of a mobile app? Tim

          C Offline
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          Christopher Duncan
          wrote on last edited by
          #14

          Tim Carmichael wrote:

          Has anyone on here successfully sold multiple copies of a mobile app?

          Would be interested in hearing those stories myself.

          Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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          • C Christopher Duncan

            That'a a fair point. I think what bothers me is the devaluation of what I do for a living. Once upon a time, spending $100 on professional quality software was pretty cheap. I routinely spend way more than that for dev, audio and video tools. Try listing an app on the App Store for $100 and you'll get death threats. With mobile being all the rage these days, and rightly so for the benefits it brings, why am I expected to work for staggeringly ridiculous prices in mobile compared to desktop software? That would suggest that mobile apps are only worth a tiny fraction of their desktop brethren. And yet, everyone's talking about how the desktop PC is legacy and destined to die. I don't think there's a legitimate reason for this pricing in terms of cost / value. It's just a trend that got started (looking at you, Apple). And as a guy who gets paid to sling code, I dislike the notion that we should work for less than minimum wage.

            Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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            Marco Bertschi
            wrote on last edited by
            #15

            Christopher Duncan wrote:

            Try listing an app on the App Store for $100 and you'll get death threats.

            A game? - I am with you. Something for a serious cause? - TomTom is selling a navigation App for about that price (Maybe just 80$, but still...). The main problem is that most of these cheap apps need to be cheap because you do not immediately need them, and they do not give you an immediate benefit. Anyways, some of them are just additional for existing offers, such as the Wuala app, for example (Wuala makes money for selling Cloud space, not the app to access the cloud space). However, all of these are different sale models and in the end, everyone has to decide which fits best for a certain purpose.

            cheers Marco Bertschi


            Twitter | Articles


            You have absolutely no idea how glad I am that I have no idea at all. - OriginalGriff I'm at peace with the world and myself. - Me

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            • L Lost User

              Tim Carmichael wrote:

              Has anyone on here successfully sold multiple copies of a mobile app?

              Does "got ad revenue from" count as "sold"?

              C Offline
              C Offline
              Christopher Duncan
              wrote on last edited by
              #16

              You bring up a good point. Advertising is the other leg of revenue in mobile. Anyone making any money from advertising on mobile apps? Would be interested in what the numbers are in terms of revenue versus downloads. From what I've read it's still miniscule income for all but the lucky few.

              Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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              • C Christopher Duncan

                After spending a few hundred bucks on an iPad Mini, I went through the process of setting everything up. Hadn't used Instapaper and wanted to give it a try so I set up an account on their website and then went to download the iPad app. At that point, I hesitated because of the cost. It was 4 dollars. Really. After a brief moment I realized how stupid that was and bought the app. It's nice getting stuff for free or on the cheap but this really bugs me. These days, software is supposed to be free and if you actually have to pay for it, gosh, it really shouldn't cost more than 99 cents or it's way overpriced. As a professional software developer, I can't imagine why someone would go to all the trouble of writing professional quality software and then selling it for a dollar. Or even 4. This is why I don't write mobile apps on the side. I mean, seriously, try getting a plumber out to your house for 4 dollars. [edit] Since this appears to be the common thinking... Guys - you're not going to sell a million copies. You'll be lucky to sell 100. Lots of studies on this and the fallacy of Gold Rush thinking. And so the question - who are these people who are willing to work so cheaply, and are they free this weekend to mow my lawn? :-D [/edit]

                Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                L Offline
                L Offline
                Lost User
                wrote on last edited by
                #17

                Add stuff like this[^] to the mix and you have to wonder how/why Android apps are developed at all.

                Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master. ~ George Washington

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                • C Christopher Duncan

                  You bring up a good point. Advertising is the other leg of revenue in mobile. Anyone making any money from advertising on mobile apps? Would be interested in what the numbers are in terms of revenue versus downloads. From what I've read it's still miniscule income for all but the lucky few.

                  Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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                  L Offline
                  Lost User
                  wrote on last edited by
                  #18

                  Pretty much. I got €100 in the first year, most of it from the first two months. Once the app disappears from the "new and fancy"-list, no one cares about it anymore. (this was on Windows Phone btw, not a very big platform) Unless it goes viral, which it won't. That's like winning the lottery.

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                  • C Christopher Duncan

                    Along those lines, if you sell 100 copies, which is probably a realistic figure, you're working for $1 an hour. I could be wrong, but I think you're worth more than that. :)

                    Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                    E Offline
                    E Offline
                    Ennis Ray Lynch Jr
                    wrote on last edited by
                    #19

                    I don't know if I am worth more but I definitely charge more than that, however, the risk is what is important. Would you risk $10,000 for a chance at 100,000k? Probably, if you thought it was more than random. They way I considered it is: 100 is a given because we all have family and friends and a decent app would crest 1000 on word of mouth. So the real risk if you did it right would be $9k. Print a few t-shirts give your apps to magazines to review. Good reviews = downloads. 10,000 isn't that hard. Now, 100k, ok hard, but that is more than breaking even ... unless you are talking about my bill rate : )

                    Need custom software developed? I do custom programming based primarily on MS tools with an emphasis on C# development and consulting. "And they, since they Were not the one dead, turned to their affairs" -- Robert Frost "All users always want Excel" --Ennis Lynch

                    C 1 Reply Last reply
                    0
                    • C Christopher Duncan

                      After spending a few hundred bucks on an iPad Mini, I went through the process of setting everything up. Hadn't used Instapaper and wanted to give it a try so I set up an account on their website and then went to download the iPad app. At that point, I hesitated because of the cost. It was 4 dollars. Really. After a brief moment I realized how stupid that was and bought the app. It's nice getting stuff for free or on the cheap but this really bugs me. These days, software is supposed to be free and if you actually have to pay for it, gosh, it really shouldn't cost more than 99 cents or it's way overpriced. As a professional software developer, I can't imagine why someone would go to all the trouble of writing professional quality software and then selling it for a dollar. Or even 4. This is why I don't write mobile apps on the side. I mean, seriously, try getting a plumber out to your house for 4 dollars. [edit] Since this appears to be the common thinking... Guys - you're not going to sell a million copies. You'll be lucky to sell 100. Lots of studies on this and the fallacy of Gold Rush thinking. And so the question - who are these people who are willing to work so cheaply, and are they free this weekend to mow my lawn? :-D [/edit]

                      Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                      D Offline
                      D Offline
                      Dave Calkins
                      wrote on last edited by
                      #20

                      Christopher Duncan wrote:

                      These days, software is supposed to be free

                      really? are you sure about that? :)

                      C 1 Reply Last reply
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                      • L Lost User

                        Pretty much. I got €100 in the first year, most of it from the first two months. Once the app disappears from the "new and fancy"-list, no one cares about it anymore. (this was on Windows Phone btw, not a very big platform) Unless it goes viral, which it won't. That's like winning the lottery.

                        C Offline
                        C Offline
                        Christopher Duncan
                        wrote on last edited by
                        #21

                        And I'm guessing that 100 Euros is what you make in just a few hours in your real job. That's why I wonder about the wisdom of training people to pay us next to nothing for apps that have significant value.

                        Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                        L 1 Reply Last reply
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                        • E Ennis Ray Lynch Jr

                          I don't know if I am worth more but I definitely charge more than that, however, the risk is what is important. Would you risk $10,000 for a chance at 100,000k? Probably, if you thought it was more than random. They way I considered it is: 100 is a given because we all have family and friends and a decent app would crest 1000 on word of mouth. So the real risk if you did it right would be $9k. Print a few t-shirts give your apps to magazines to review. Good reviews = downloads. 10,000 isn't that hard. Now, 100k, ok hard, but that is more than breaking even ... unless you are talking about my bill rate : )

                          Need custom software developed? I do custom programming based primarily on MS tools with an emphasis on C# development and consulting. "And they, since they Were not the one dead, turned to their affairs" -- Robert Frost "All users always want Excel" --Ennis Lynch

                          C Offline
                          C Offline
                          Christopher Duncan
                          wrote on last edited by
                          #22

                          And that's the thing. I think chances of success are well below random. Otherwise, you and I would both be cranking them out as fast as we could!

                          Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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                          • C Christopher Duncan

                            Well, at least you're not expecting to sell a million copies like everyone else. That said, in all but rare cases, even 10k sales of a paid app is massively unrealistic. 99 cents times 100 sales, something you might achieve, is less than most developers make before lunch. And you're going to spend way more than half a day on it.

                            Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                            K Offline
                            K Offline
                            Keith Barrow
                            wrote on last edited by
                            #23

                            It's worse than that for iPhone development: Apple takes a princely 30%, so you'll only see ~70 cents per download, as ever it is the people selling the tools that make the bucks, not the prospectors. Reminds me of the 80s, when the home computer (Spectrum/C63 era) market was flooded with games and it drove the prices down. I did hear a theory that development would split into two: the "hard" comp sci stuff which will be paid well, and low-paid low-skilled work where people cobble stuff together from simple to use frameworks. The apps store thing might be a sign that this theory has legs?

                            “Education is not the piling on of learning, information, data, facts, skills, or abilities - that's training or instruction - but is rather making visible what is hidden as a seed”
                            “One of the greatest problems of our time is that many are schooled but few are educated”

                            Sir Thomas More (1478 – 1535)

                            C K 2 Replies Last reply
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                            • C Christopher Duncan

                              After spending a few hundred bucks on an iPad Mini, I went through the process of setting everything up. Hadn't used Instapaper and wanted to give it a try so I set up an account on their website and then went to download the iPad app. At that point, I hesitated because of the cost. It was 4 dollars. Really. After a brief moment I realized how stupid that was and bought the app. It's nice getting stuff for free or on the cheap but this really bugs me. These days, software is supposed to be free and if you actually have to pay for it, gosh, it really shouldn't cost more than 99 cents or it's way overpriced. As a professional software developer, I can't imagine why someone would go to all the trouble of writing professional quality software and then selling it for a dollar. Or even 4. This is why I don't write mobile apps on the side. I mean, seriously, try getting a plumber out to your house for 4 dollars. [edit] Since this appears to be the common thinking... Guys - you're not going to sell a million copies. You'll be lucky to sell 100. Lots of studies on this and the fallacy of Gold Rush thinking. And so the question - who are these people who are willing to work so cheaply, and are they free this weekend to mow my lawn? :-D [/edit]

                              Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                              G Offline
                              G Offline
                              GuyThiebaut
                              wrote on last edited by
                              #24

                              Christopher Duncan wrote:

                              And so the question - who are these people who are willing to work so cheaply, and are they free this weekend to mow my lawn? :-D

                              Me... and only if there is free beer provided. I have a piece of software out there that is free and has had a good few downloads. I can count the number of people who have made a donation on one hand. I do it for the enjoyment and sense of accomplishment and what I learn along the way. For this reason I make a point of donating when I use software regularly.

                              “That which can be asserted without evidence, can be dismissed without evidence.”

                              ― Christopher Hitchens

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                              • D Dave Calkins

                                Christopher Duncan wrote:

                                These days, software is supposed to be free

                                really? are you sure about that? :)

                                C Offline
                                C Offline
                                Christopher Duncan
                                wrote on last edited by
                                #25

                                Popular culture? Yes. Without question. My own personal convictions? Not only no, but hell no! :-D

                                Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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                                • G GuyThiebaut

                                  Christopher Duncan wrote:

                                  And so the question - who are these people who are willing to work so cheaply, and are they free this weekend to mow my lawn? :-D

                                  Me... and only if there is free beer provided. I have a piece of software out there that is free and has had a good few downloads. I can count the number of people who have made a donation on one hand. I do it for the enjoyment and sense of accomplishment and what I learn along the way. For this reason I make a point of donating when I use software regularly.

                                  “That which can be asserted without evidence, can be dismissed without evidence.”

                                  ― Christopher Hitchens

                                  C Offline
                                  C Offline
                                  Christopher Duncan
                                  wrote on last edited by
                                  #26

                                  I can certainly understand doing stuff for a hobby. I've written plenty of stuff for my own use. My primary concern is the devaluation of our skill set over time. And beer ain't free. ;P

                                  Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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                                  • L Lost User

                                    Add stuff like this[^] to the mix and you have to wonder how/why Android apps are developed at all.

                                    Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master. ~ George Washington

                                    C Offline
                                    C Offline
                                    Christopher Duncan
                                    wrote on last edited by
                                    #27

                                    Looks interesting. I believe I'll save it for later with my $4 Instapaper app. :-D

                                    Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

                                    1 Reply Last reply
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                                    • K Keith Barrow

                                      It's worse than that for iPhone development: Apple takes a princely 30%, so you'll only see ~70 cents per download, as ever it is the people selling the tools that make the bucks, not the prospectors. Reminds me of the 80s, when the home computer (Spectrum/C63 era) market was flooded with games and it drove the prices down. I did hear a theory that development would split into two: the "hard" comp sci stuff which will be paid well, and low-paid low-skilled work where people cobble stuff together from simple to use frameworks. The apps store thing might be a sign that this theory has legs?

                                      “Education is not the piling on of learning, information, data, facts, skills, or abilities - that's training or instruction - but is rather making visible what is hidden as a seed”
                                      “One of the greatest problems of our time is that many are schooled but few are educated”

                                      Sir Thomas More (1478 – 1535)

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                                      C Offline
                                      Christopher Duncan
                                      wrote on last edited by
                                      #28

                                      I'm not sure it'll even be two tier over time. I've said many times in the past that software is the new factory work. I believe that's where the industry is heading. Pardon me while I go tune my guitars...

                                      Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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                                      • C Christopher Duncan

                                        Yeah, everyone's fixated on the "sell it a million times" thing. Guys, seriously, you have a better chance of winning the lottery than you do selling a million copies of a mobile app.

                                        Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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                                        Septimus Hedgehog
                                        wrote on last edited by
                                        #29

                                        Christopher Duncan wrote:

                                        you have a better chance of winning the lottery

                                        But it doesn't stop 'em for trying. Some will succeed. The remainder would be better off sucking seeds. :)

                                        If there is one thing more dangerous than getting between a bear and her cubs it's getting between my wife and her chocolate.

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                                        • S Septimus Hedgehog

                                          Christopher Duncan wrote:

                                          you have a better chance of winning the lottery

                                          But it doesn't stop 'em for trying. Some will succeed. The remainder would be better off sucking seeds. :)

                                          If there is one thing more dangerous than getting between a bear and her cubs it's getting between my wife and her chocolate.

                                          C Offline
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                                          Christopher Duncan
                                          wrote on last edited by
                                          #30

                                          PHS241 wrote:

                                          The remainder would be better off sucking seeds. :)

                                          That's now legal in Washington and Colorado. :-D

                                          Christopher Duncan Author of The Career Programmer Enjoy comedy? Watch Talking Head Games (SFW)

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