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Under the Radar 18: Choosing a Pricing Model

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0:00:00welcome to under the radar a show about

0:00:01independent iOS app development I'm

0:00:03Marco Arment and I'm David Smith under

0:00:06the radar is never longer than 30

0:00:07minutes so let's get started so I am in

0:00:11the process of wrapping up development

0:00:13on my next app you I'm yes yes another

0:00:17one it's it's truly shocking and you

0:00:19know a revelation that I'd be working on

0:00:21a new app but I am and I'm at the point

0:00:24now where the app is mostly finished

0:00:29it's like functionally complete I'm

0:00:31getting ready to start sort of more

0:00:32broad testing and that kind of thing and

0:00:34it's an app that's geared in sort of in

0:00:36the health and fitness area that I've

0:00:38been doing recently to sort of join the

0:00:40ranks of pedometer plus plus and C++

0:00:42this one's about displaying the activity

0:00:46and fitness data collected by Apple

0:00:47watches you know hopefully a more useful

0:00:50way so I've come through like the part

0:00:53that I have a lot of comfort with in

0:00:55terms of sitting down and just building

0:00:57an app like the actual opening Xcode and

0:00:59coding that part I always feel good

0:01:01about but now I'm hitting an interesting

0:01:03a more challenging part of it at least

0:01:05for me that I thought it would be

0:01:07interesting to talk about and that's the

0:01:08process of working out the business

0:01:11model that I'm going to ultimately

0:01:13launch the app with and maybe some

0:01:15people would think that it would be a

0:01:17better idea to have the business model

0:01:19in mind before I make the app but that's

0:01:22just not the way I work I have an idea I

0:01:24start building it a few weeks later I

0:01:26have the app that's just how my process

0:01:29works so now I hit the point that I have

0:01:31to decide what am I going to do with

0:01:33this and you'd think at this point like

0:01:37I've been doing this for long enough and

0:01:38I've launched enough apps that I would

0:01:40just like immediately know what it isn't

0:01:42going to do but I kind of awkward

0:01:45reality as I looked at it and I'm like I

0:01:46don't really know what I want to do for

0:01:48this app like I could make it do do so

0:01:51many different things like the number of

0:01:53options available to app developers

0:01:55these days is kind of wild in terms of

0:01:58it's not just like an older sort of like

0:01:59the old days where it's like you could

0:02:01have a paid app or a free app or like

0:02:03push it free with ads and then like the

0:02:05introduced you know purchase and

0:02:06originally in a purchases were only in

0:02:07paid apps and so you could have like

0:02:09extra what they call like pay mia maps

0:02:11and

0:02:11then they added in a purchase for free

0:02:14apps we can do that now and this

0:02:16recently been a whole big wave of

0:02:18fitness apps being purchased by big

0:02:20companies and so that's even like this

0:02:22other kind of vague not like a business

0:02:23plan but they sort of like a concept of

0:02:26people are making fitness apps and

0:02:27eventually being purchased by bigger

0:02:29companies and making their money that

0:02:30way and so that leaves me in kind of a

0:02:33crazy thing and so I what I wanted to do

0:02:34this week is to sort of think out loud

0:02:38and get your your your thoughts Marco

0:02:41about how to proceed and kind of the

0:02:43considerations and the thoughts that go

0:02:45into this because I imagine anybody who

0:02:48is making an app a product something

0:02:50like that you have to go through this

0:02:51kind of mentality

0:02:53to think you know what's ultimately

0:02:55going to be best for you and the answer

0:02:58is probably different for everybody

0:02:59so thinking you know rather than just

0:03:01giving an answer explaining how I'm

0:03:04going to hopefully end up with an answer

0:03:06is probably more helpful so for me I

0:03:09think that one of the ways to look at

0:03:11this first off is if you have any any

0:03:14previous apps that you've made

0:03:16especially anything you've made in

0:03:17recent years you know since the economy

0:03:19always changes in the App Store any

0:03:21parallels you could draw from other apps

0:03:23of like what might be the best pricing

0:03:25model for like you know a similar app

0:03:27that you've made and how that's done

0:03:29sure and probably the closest have to

0:03:32this is it's really it's out of all my

0:03:35apps it's certainly going to be

0:03:35pedometer plus plus or sleep plus plus

0:03:37which are fitness apps and probably in

0:03:40many ways sleep plus plus is the actual

0:03:43a pedometer plus plus or in the early

0:03:44days have the same thing where like

0:03:46because it's an app that's tied to a

0:03:48particular platform like in when

0:03:51pedometer plus plus launched it was tied

0:03:53to the iPhone 5s and if you didn't have

0:03:55a 5s it was worthless to you and in you

0:03:58asleep plus plus if you don't give an

0:03:59Apple watch it's useless to you and we

0:04:01had this new app if you don't have an

0:04:02Apple watch it's not really gonna be

0:04:04able to show you anything useful so

0:04:05those are probably like the closest to

0:04:08the way I do now and those are both free

0:04:10with ads and an in-app purchase to

0:04:14remove the ads and in the case of

0:04:16pedometer plus plus the in-app purchase

0:04:17is structured as a consumable tip jar

0:04:20type of thing and in sleep us+ it's just

0:04:23like a one-time rake

0:04:24like any net purchase to remove ads with

0:04:27a nice little message saying thank you

0:04:28so much and pedometer plus plus does not

0:04:31have ads at all right it does okay I

0:04:34didn't it didn't initially launch with

0:04:36them initially it just launched with the

0:04:38tip jar but that I introduced ads a

0:04:42while after a while because the tip jar

0:04:45while conceptually I liked from a

0:04:48performance perspective didn't do that

0:04:50as well at least until I added advert

0:04:53ads to it and once I added ads like once

0:04:56there was both the carrot like hey

0:04:58support me this is great and the stick

0:05:00of I'm going to show ads in the app

0:05:01unless you pay like the combination of

0:05:04those two it led to a much more robust

0:05:07adoption of the tip jar and so I had it

0:05:10ads and it's been working much better

0:05:11since then because otherwise I'd find

0:05:13sort of the I launched it or I launched

0:05:15a big update and I'll get this kind of

0:05:16like this little wave of goodwill and

0:05:18then it drops to almost nothing and so

0:05:22that didn't really work in the long run

0:05:23that makes sense so now it seems like

0:05:27the the most logical conclusion then if

0:05:30you say that the new app is most similar

0:05:32to pedometer plus plus and apps like

0:05:34this and the pedometer plus plus and

0:05:36sleep plus plus both have this kind of

0:05:39you know ads with paid options to remove

0:05:41them models and they both work pretty

0:05:43well it seems on the surface that would

0:05:45be the best choice but with I ad

0:05:48shutting down this summer then obviously

0:05:50that there's a wrench into everything

0:05:51right exactly yeah and like I look at

0:05:53this and it's it's more complicated both

0:05:56because of that and also because in a

0:05:59weird way I also want like I kind of

0:06:01want diversity in my in my income stream

0:06:04and so like having everything be the

0:06:06same model sometimes it makes me wonder

0:06:08if that's problematic like if all of my

0:06:10money is coming from ads I mean it's

0:06:12sort of in the same way that like fair

0:06:13enough I can move to another advertising

0:06:15platform but you know if a there was

0:06:18some App Store policy change for example

0:06:20that changed the types of advertising

0:06:22that was that were allowed and it led to

0:06:25you know essentially meant that

0:06:27advertising rates collapsed like if all

0:06:29my income is coming from advertising

0:06:30then it's probably problematic or if the

0:06:35types of ads that are available you know

0:06:38become more and more skeezy and crumby

0:06:40then I can like and if my entire like

0:06:44business is based on that like that's

0:06:46not a great position either and so I end

0:06:48up with this weird thing if it's like

0:06:50there's a lot of things that I could do

0:06:51and when I was taking a step back and

0:06:54thinking in preparing for this episode I

0:06:56kept finally coming back to is it's like

0:06:58ultimately I have to decide and this is

0:06:59like really I think that like you can

0:07:01build and a business models to do what

0:07:03like one of four things you can either

0:07:05like maximize the money that you get now

0:07:08you can maximize the reliability of

0:07:12income you'll get later you can maximize

0:07:15the overall money the app will ever

0:07:18receive in its lifetime or you can try

0:07:21and maximize your user base which one of

0:07:24those things will vary dramatically

0:07:26dependent like will then decide which

0:07:28business model makes most sense for you

0:07:30because okay if I want the most money

0:07:32now well I should probably do like a

0:07:34paid app just like charge money up front

0:07:36hope for a little bit of press when the

0:07:38app launches you know kind of get a big

0:07:40big push have a couple of days with nice

0:07:43big sales and then it'll likely fall off

0:07:46pretty dramatically least that's my

0:07:49experience is that you end up with this

0:07:50very steep drop-off afterwards but you

0:07:53know in that first couple in that first

0:07:54cut in the first week or so you can

0:07:56actually make quite a lot more than you

0:07:59would probably be able to make from any

0:08:00of the other models and so you can make

0:08:02it now and like if I want reliable

0:08:04income something like advertising is

0:08:06great because it's there's no not there

0:08:09isn't kind of like this one time

0:08:11purchase nature to it where people just

0:08:13keep every time they open the app I make

0:08:16you know a fraction of a penny and so

0:08:18the more if people keep using the app

0:08:20there continues to be money coming in

0:08:23like overall revenue is probably going

0:08:25to be some combination of them like

0:08:28where it's like I'm gonna do everything

0:08:29I'm gonna have ads I'm gonna have in-app

0:08:32purchases to remove ads I may have NF

0:08:34purchases to do features like do

0:08:37everything you could possibly do to try

0:08:38and maximize things and then if I wanted

0:08:40to like Matt just maximize the user base

0:08:42well then kind of take the VC model and

0:08:44say you know

0:08:45just make it free like in hope that

0:08:48you'll work something out down the road

0:08:49like if once you have you know hundreds

0:08:52of thousands of customers using the app

0:08:53all the time then hey that's got to be

0:08:56worth something to someone right yeah I

0:08:58mean so I think so you know with

0:08:59overcast I obviously chose the pretty

0:09:02much the latter option but you know

0:09:04pretty much make it free at first I had

0:09:07like you know free with unlock to get

0:09:09all features now it's pretty much

0:09:11everything's free and and you you know

0:09:13you you pay if you feel like it which is

0:09:16almost like everything's free and the

0:09:20reason I did that was because I've

0:09:21wanted to maximize the user base really

0:09:23you know I have I have like political

0:09:24goals with with how I feel about how

0:09:27podcasting apps should and shouldn't be

0:09:28designed and I you know I want to like

0:09:31keep podcasting open and and you know

0:09:33reduce the influence of proprietary

0:09:35gatekeepers and everything and so for me

0:09:37it was important to maximize the user

0:09:39base first and then figure out money

0:09:41with that in mind like you know not

0:09:43necessarily later because I didn't delay

0:09:45making money but just like figure out a

0:09:48way to make money while also giving away

0:09:50as much as possible for free and so you

0:09:53know that that's the model I chose that

0:09:55though you know that was in the context

0:09:57of this entire ecosystem that had these

0:09:59other factors that I was playing to in

0:10:02in your situation here with this app you

0:10:04know with every app certain models will

0:10:07work better than others you know and and

0:10:09it depends so much on what the app is

0:10:10what the competition is how your market

0:10:13timing is you know what you know what

0:10:15the market is itself so something like

0:10:18pedometer plus plus that was that

0:10:20initially a paid app or was it always

0:10:22free upfront it's always free cuz it's

0:10:23because of in especially it was free

0:10:26because it required an iPhone 5s and

0:10:28there was no way that I could require

0:10:30you to have one before you purchased it

0:10:32and so I made it free because I was

0:10:35afraid that there would be lots of

0:10:36people who would pay for it and then

0:10:39immediately discover that it's worthless

0:10:41and go and get a refund or leave a

0:10:43one-star review and so it just never

0:10:45seemed like paid would be a viable

0:10:47option right and so therefore the same

0:10:50thing applies to this then because this

0:10:51requires an Apple watch so you know it's

0:10:53or what does it officially require it

0:10:55isn't you know basically it basically

0:10:56requires it right it basically record

0:10:58everybody it would be fairly useless

0:10:59that one right exactly so it seems like

0:11:02paid is right out the window which is

0:11:04unfortunate because actually something

0:11:06like this where you're saying like you

0:11:08know it's taking advantage of something

0:11:10new it's something that is a that is a

0:11:12small market there's probably going to

0:11:14be very little competition out there at

0:11:16least at first so that kind of condition

0:11:18usually is a really good fit for paid

0:11:21where you have people who are going to

0:11:23be motivated to get it and very little

0:11:25competition really and and especially it

0:11:28being new well that combination usually

0:11:30means go paid upfront because you kind

0:11:34of have to be free up front because we

0:11:35don't have real trials this would be a

0:11:38man this would be a great case for a

0:11:39trial but but those don't exist so

0:11:41instead you have to be free somewhat so

0:11:44the only question now is whether you

0:11:46lock some features whether you use ads

0:11:49or whether you just don't think about

0:11:50money with this app and use it for other

0:11:51purposes like promoting your other stuff

0:11:53or giving back to the world or whatever

0:11:56so going through those one by one I

0:11:58guess free with unlock is tricky certain

0:12:03apps there just really isn't a good

0:12:04place to put that locking barrier so

0:12:07like one of the examples I know I think

0:12:09James Thompson talked about this a while

0:12:11ago with P calc is you know where do you

0:12:13if you have a calculator that you want

0:12:16to be free upfront with a paid app

0:12:18purchase to unlock something what do you

0:12:20unlock like the nine button like it's

0:12:22it's hard it's like certain apps are

0:12:24just hard to figure out where to place

0:12:26that barrier in a way that the app isn't

0:12:29totally useless without it but that

0:12:31enough people will hit that barrier and

0:12:33be motivated to pay and certain apps the

0:12:36answer is just this doesn't fit well and

0:12:38there isn't a good place for it and

0:12:40certain apps you know there are plenty

0:12:41of places for it and the question is

0:12:43where do you put it and so in this case

0:12:45do you think there's a good spot to have

0:12:48a paid unlock like there's a good

0:12:50feature or set of features or limit that

0:12:52can be removed where enough people will

0:12:56hit that and want to pay but they won't

0:12:58hate you because it's so annoying every

0:13:00time they hit it the only one that comes

0:13:03to mind for an app like this is to do

0:13:05with some type of kind of artificial

0:13:07limit

0:13:08the amount of data that it will display

0:13:12so you'd have something you know it's

0:13:14sort of like being the same with like

0:13:15pedometer plus balls like it shows you

0:13:16historical data it would be like you can

0:13:19only see the current week unlock to see

0:13:21all kind of a thing

0:13:24is the only thing that I could sort of

0:13:26see because partitioning the feature set

0:13:29or the functionality in other ways like

0:13:30it feels so contrived like feels much

0:13:33more like the yeah like you don't use

0:13:35like you can do multiplication but you

0:13:37can't do division like that right

0:13:39exactly

0:13:40it completely kind of removes the point

0:13:43of the app if you start partitioning the

0:13:45features and so the only way I could

0:13:46ever really I could have a kind of

0:13:48imagine is to say like hey I'm only

0:13:50going to show you this amount of data

0:13:51you know if you scroll beyond that

0:13:52there'll be a little box that says hey

0:13:54would you like to see the rest of your

0:13:55data you know I'm holding it hostage for

0:13:57$2 at the bottom

0:14:00yeah and that's that's so tricky to do

0:14:02while also balancing like the users will

0:14:05to pay you because it's so easy to just

0:14:07appear really stingy or annoying or

0:14:10cheap with what you give them for free

0:14:11and what you don't and if they don't

0:14:13feel good about your app they usually

0:14:16won't pay to get past that barrier some

0:14:18people still will and they will hate you

0:14:19for it I've done that before with some

0:14:22apps like sometimes for like I really

0:14:24needed it to get my job done and they

0:14:26offered a free trial and I kept hitting

0:14:29walls and I just eventually I did pay in

0:14:32a lot of these cases and I but I just

0:14:34felt terrible I felt like I hated them

0:14:36for it and that kind of soured me on the

0:14:38whole company and on you know like their

0:14:40future products or my experience with

0:14:42the app or my willingness to recommend

0:14:43it to others so it's always a hard

0:14:45balance when you whenever you have these

0:14:46barriers but that being said if you have

0:14:49an app where a barrier like this makes

0:14:53sense and where you where you can find a

0:14:54good place for it and you implement that

0:14:56well it usually is a really good way to

0:14:59make a reasonable living like it you can

0:15:01usually get decent income that way

0:15:03without a lot of the problems of things

0:15:06like ads or paid upfront so usually that

0:15:09that is great when it works but it is

0:15:12really hard to make it work yeah and I

0:15:14think one thing that I always struggle

0:15:15with and I'm trying to think of this

0:15:16it's like

0:15:18it's what am i communicating to my

0:15:20customer because like the hardest part I

0:15:22think like that you have to get over and

0:15:24a little bit I think you're alluding to

0:15:25it for like it makes you feel bad is

0:15:27when you say like this part of the app

0:15:31is free like the the initial part like

0:15:34in typically it's like the core part

0:15:36like the main purpose of the app is free

0:15:38and then there's these extra things that

0:15:40are are like cost more like the weird

0:15:45thing that you have to keep in mind is

0:15:47in some ways what you're communicating

0:15:48to your customer is like the core part

0:15:50of the app is free or in some ways you

0:15:52could like it's not a great word but

0:15:54it's more helpful for this analogy it's

0:15:57like this part of the app is worthless

0:15:58and this other part somehow I'm saying

0:16:03is worth full but if you look at those

0:16:06as a customer

0:16:08they may look functionally identical

0:16:09right it's you're saying like if you

0:16:13know the ability to do this XY and Z

0:16:15shouldn't cost you anything and I'm

0:16:18telling you that it shouldn't cost you

0:16:19anything to do these things because I

0:16:21just gave you an app that you downloaded

0:16:23for free that does those things so I've

0:16:25communicated to you this is worthless

0:16:27but you know but this other thing

0:16:30that is essentially probably very

0:16:31similar to the other thing and is in

0:16:34many ways a contrived barrier like

0:16:37somehow it should be valuable and like

0:16:39there's a dissonance there that I feel

0:16:41like is is where it gets really hard

0:16:42like you can only really make the case

0:16:44for unlocking something when the thing

0:16:47that you're paying is like paying for

0:16:49feels different and like completely

0:16:54orthogonal to the thing that you the

0:16:57core part of the thing that you gave

0:16:58away for free you know so often you'll

0:17:00have something where there's a physical

0:17:02cost associated with it like you're

0:17:04paying for storage or for a sink you

0:17:07know to access sink or something where

0:17:10it's not the thing that I gave you for

0:17:12free just you know like I it's something

0:17:16totally different in a team's of a

0:17:17tangible way because when you do that I

0:17:20think maybe that's where you can get

0:17:21around that feeling of like I feel bad

0:17:23about this because I feel like they're

0:17:25just kind of you know like being cheap

0:17:27by you know creating this artificial

0:17:30limit

0:17:31it's tough too because when you put up a

0:17:33limit like that people who will hit it

0:17:36and they will they will try to

0:17:37rationalize not going past it so though

0:17:39if you put up a limit and you say well

0:17:41you can only see the last week of data

0:17:43or whatever you know whatever limit you

0:17:45put up yeah people are gonna hit that

0:17:46and they're first going to think well I

0:17:48guess I don't need that right like

0:17:50they're gonna try to convince themselves

0:17:51they don't need that because they don't

0:17:53really want to pay so we're gonna try to

0:17:55say well you know what I can get along

0:17:57fine without that and even if they would

0:17:59enjoy the app more with that even if

0:18:01they would get their $2.00 or whatever

0:18:03worth of enjoyment or value out of

0:18:06having gone past that barrier they will

0:18:08try very hard to convince themselves

0:18:10even if it's subconscious not to go past

0:18:12that barrier and so you'll have so many

0:18:14people who really could use the app who

0:18:16really could enjoy it a lot more if they

0:18:19would pay the two bucks but who have

0:18:20convinced themselves they don't need to

0:18:22because they would rather not and and

0:18:24like that's the issue I favor the

0:18:25overcast that's one of the reasons I

0:18:26want patron eggs eventually it's just

0:18:28very hard but I don't know and then we

0:18:30have we have a lot more better options

0:18:32or different options at least including

0:18:34ads but let's read an ad first because

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0:20:16so there's also ad supported apps to me

0:20:20like it sounds like it'd be a decent

0:20:22idea because it sounds like you get

0:20:24money for when the app is being used and

0:20:27no one has to decide whether to pay you

0:20:29or not because the ad is paying you

0:20:31automatically effectively if they use

0:20:33the app and they can maybe pay to remove

0:20:35it or something that's you know that's a

0:20:36separate discussion which I'm sure we'll

0:20:37have but at the heart of it you kind of

0:20:40automatically just get money slowly with

0:20:42usage of course there's downsides in

0:20:45practice things like you know privacy

0:20:48concerns annoyance concerns image

0:20:50concerns what do you think about after

0:20:51that yeah it's a it's an uncomfortable

0:20:57it's like it's like if you may have

0:20:59noticed that was an uncomfortable intake

0:21:01of breath yeah because I don't read I

0:21:04don't like using apps that have ads in

0:21:06them but I make a substantial amount of

0:21:10my revenue from ads and like there's a

0:21:14little bit of cognitive dissidence about

0:21:16that like it's like the ultimately the

0:21:17pragmatic part of like this is the

0:21:19practical way to make revenue but the

0:21:22reality is I never really like I don't

0:21:24my app is never made better by having an

0:21:27ad in it like it's not like oh wow well

0:21:30it's like people will love it when they

0:21:31can see ads for other you know for for a

0:21:35game of war or clash of clans or

0:21:38whatever like the like the latest

0:21:40creative play game is like which is

0:21:42essentially what most online ads seem or

0:21:44mobile ads seems to be these days

0:21:46therefore like I don't know those games

0:21:47or they're for a big brand like audible

0:21:49or Google or something like that

0:21:51and so putting those into my apps like

0:21:55always feels a little bit's not great

0:21:59but the reality is like like you said

0:22:02like it works well and I like

0:22:05conceptually the fact that I'm getting

0:22:08paid for use in a way that like it's a

0:22:12really nice virtuous cycle like I want

0:22:14to make an app that's really engaging

0:22:15and you wanna you know you want to keep

0:22:18opening up and looking at you know from

0:22:21showing you you know health and fitness

0:22:22data like hopefully it's motivating

0:22:24hopefully it's something that you want

0:22:25to go and check on a regular basis and

0:22:27so aligning a business model with that

0:22:29where it is something that the more you

0:22:31use it the more money I make like is

0:22:34great and in some ways it reminds me

0:22:35think of the way that like I almost kind

0:22:38of wish that there were was a mechanism

0:22:41kind of like quote musicians have with

0:22:45streaming services oh you don't want

0:22:47that conceptually I do I don't

0:22:50necessarily like it breaks down in

0:22:52certain ways obviously like all these

0:22:54things do but like conceptually you just

0:22:55add a bunch of zeros to the number

0:22:57basically then we want that version of

0:22:58it that version that version B so is so

0:23:00great right for the conceptually like

0:23:02every time someone listens to the song

0:23:03they get a bit of money and like if

0:23:05every time someone opens my app I got a

0:23:07bit of money that would be great

0:23:10like if the if such a thing sort of

0:23:11existed like if there was like a breath

0:23:13and Apple music there was like Apple app

0:23:15and people paid a certain amount of

0:23:17money and it was distributed around

0:23:18people based on what they used or

0:23:20something right like you could imagine a

0:23:21system that would sort of work in that

0:23:22way like it's hugely problematic and I'm

0:23:25not really advocating for that but like

0:23:27conceptually a version it would be like

0:23:30the business model that adds create but

0:23:33without the potential for kind of like

0:23:36not desirable aesthetics in my apps so

0:23:40like that would be great that doesn't

0:23:42exist and so you end up with ads and you

0:23:46ultimately I like I end up like most

0:23:48likely than not that's ultimately what

0:23:49I'll probably have to do is I look at

0:23:51and it's like you know if I have ads in

0:23:54this app I will if it's successful if

0:23:57it's just downloaded wildly then I will

0:23:59likely you know make a reasonable amount

0:24:01of semi reliable income from it

0:24:03and if P if it's sticky and people

0:24:05really like it and keep coming back to

0:24:07it like my revenue will continue to if

0:24:09not grow at least to stay stable in long

0:24:11term which is great like see our episode

0:24:13about work-life balance that we just did

0:24:16where I talked about like the more you

0:24:18can make your income kind of like

0:24:21passive and not related to what you're

0:24:22doing like the better and so ads are

0:24:25great for that because it's all based on

0:24:27work you've done in the past like

0:24:29continuing to pay you in the future I

0:24:30just wish it didn't make me feel so kind

0:24:33of like mmm whenever I do it yeah and it

0:24:37seemed like with ads like you could do

0:24:39something crazy like direct sales of ads

0:24:41but that's a lot of work it's the best

0:24:44for like privacy maximization really and

0:24:46it might be the classiest but that's a

0:24:48ton of work and as you go like kind of

0:24:50down the rabbit hole I'm like well I

0:24:51could join a network and then you know a

0:24:54small app network if that existed which

0:24:57I don't even know if it does but you

0:24:58know assuming that existed up then then

0:25:00we pool resources selling ads is a

0:25:02little bit easier I've maybe I don't

0:25:03have to do it anymore or I can I can you

0:25:05know share a salesperson with somebody

0:25:06else and as you get further down it's

0:25:08like well all these things are a lot of

0:25:09work until you get down to the well I

0:25:12can just plug in a module from a big ad

0:25:15provider where I might not have even

0:25:18beat I might not have even dealt with a

0:25:19human at all to be part of this thing

0:25:21you're getting who knows what ads from

0:25:23who knows where and they're doing who

0:25:25knows what with your customers private

0:25:26privacy and data but that's also the

0:25:28easiest for you I like that and so like

0:25:31with ads you like the the incentives are

0:25:34all towards getting creepier and

0:25:36creepier because the the easiest ways to

0:25:38get into ads and the most accessible

0:25:40ways against ads happen to also be the

0:25:43worst about privacy and customer data in

0:25:45most cases whereas you know anything

0:25:47better than that tends to take more work

0:25:49than most people can really devote to it

0:25:51exactly and that guy in my first ever

0:25:54foray into ads I did actually sell them

0:25:57direct like this was like way back early

0:25:59days of the app store because like ad

0:26:01networks didn't exist and like I would

0:26:04sell ads to you typically was to other

0:26:06app developers at very small very small

0:26:09amounts of money but it's like that was

0:26:12the best you could do back then but now

0:26:14yeah like you would just you install

0:26:16I add for the next couple of months or

0:26:19you know AdMob from Google or any of the

0:26:21million things like see our previous

0:26:23episode about ads where there's like so

0:26:24many networks and all kinds of things

0:26:26and you just kind of put it in and like

0:26:29in theory like and then money will start

0:26:31flowing and like that's great it's like

0:26:33in some ways this is an area though with

0:26:35like some you know the last version of

0:26:37like business model that I probably

0:26:39doesn't really fit from what I do but is

0:26:41interesting nevertheless is I am kind of

0:26:42envious of venture funded companies in

0:26:45this regard because they don't have a

0:26:47business model like they don't need well

0:26:50they have a different business model

0:26:50therapist this model is get really huge

0:26:53and worry about it later even though

0:26:55that usually means probably get bought

0:26:57before we have to worry about it exactly

0:26:59which is a business model it's just

0:27:00different for what we do yeah and like I

0:27:02look at that and I'm like in some ways

0:27:03that's actually kind of cool like to be

0:27:04able to just say like you know what I'm

0:27:05just gonna focus on making something

0:27:07cool and getting as many people as I can

0:27:10to use it and I don't need to worry

0:27:12about the financial part of that and in

0:27:15some ways like that's kind of

0:27:16interesting like I've definitely had the

0:27:19thought for some something like this of

0:27:20saying like you know what if I just went

0:27:21to like took that tack and like hope you

0:27:25know it's like MyFitnessPal got bought

0:27:27by Under Armour RunKeeper got bought by

0:27:30a6 like at some point is good COO you

0:27:33know if I was able to make some make a

0:27:35like a wildly successful health and

0:27:38fitness app that could it be picked up

0:27:39by some other company for you know it's

0:27:41probably in some ways more money than I

0:27:43could ever make from you know running

0:27:44AdMob ads in an application like that

0:27:48sounds kind of interesting it's like the

0:27:51risk dynamic on that just like goes

0:27:53through the roof where it's like or I

0:27:54could end up with having made this cool

0:27:56thing that ends up making me no money

0:27:58ever and that's kind of terrifying as

0:28:01well yeah all right well what do you

0:28:05think you're gonna do I have um have you

0:28:06come to any conclusions or you still

0:28:07gotta think about it I'm still gonna

0:28:09think about it I'm probably gonna do at

0:28:12like I think my default is gonna be ads

0:28:14like I don't think paid works

0:28:16I don't think unlocking features really

0:28:18works like I don't like the thought of

0:28:20right and to clarify it really works for

0:28:22this app on both exactly the whole point

0:28:25of this discussion is like whether it

0:28:26works in this particular case and like

0:28:28the reason we're going through it step

0:28:29by step

0:28:30that every app is different this is why

0:28:32this may or may not make sense for this

0:28:34app ads are like the easy thing I don't

0:28:38feel great about them but I think they

0:28:40are sort of like the obvious and

0:28:41straightforward choice I'll most

0:28:43certainly have an option to remove the

0:28:46ads I'm just in terms of that's often

0:28:48just it makes me feel better maybe it's

0:28:50like it's just like cleansing my

0:28:51conscience a little bit about not having

0:28:53ads to say like so you know like if you

0:28:55don't like them that's fine then it's

0:28:56just a paid app and you can give me

0:28:58money and we'll go away and if I'm

0:29:01feeling particularly daring or a little

0:29:03bit reckless in wild then maybe I just

0:29:04make it free but being a one-person shop

0:29:07who pays my mortgage with the revenue

0:29:10from my apps not having any revenue does

0:29:13not seem particularly wise yeah all

0:29:16right well that's all the time we have

0:29:18for today thanks a lot to our sponsor

0:29:19hover and we will talk to everybody next

0:29:21week bye