iPhone app results - lessons for CPA?

5 replies
Hi Guys,

Thought I'd share this with you all - it's not about a CPA campaign, but about the results a friend had recently with launching an iphone app.

He made an app in a very specific music-based niche (it's pretty cool actually, something a certain niche should love).

He made a free version, and a paid upgraded version with more features.

When he first launched the "free" version though, they started out charging $1 for it.

Things were very slow, and it wasn't really being picked up - very low figures.

So.....they made it free and ....BAM - it goes huge, and they get 2.3 million downloads!! He still hasn't sold much of the paid version.

However they can't market to the free downloads directly as iTunes has the list!

I thought this was interesting because:

-It shows how much of a difference a "free" thing can make - I mean, they couldn't sell it at $1 - the niche they're after expect a lot of things like music to be free. It shows the potential of any "free" offer imo. Lots of similarities here to certain types of CPA marketing.

-There's a huge potential to apply proper marketing and upsell the free downloads to paid, but it needs to be thought out first (like in this case have the app offer "upgrades" from time to time).

-While they took a loss on the initial offer - these apps could point people using them to a site where they could try and upsell or make other offers.

-They can't upsell directly (email) as itunes (apple) have "the list" - lesson for other types of marketing - the money is in the list, and the biggest players like apple know this.

-There's talented app builders out there (as there are other types of clever tech people) who could benefit from working with talented marketers (that's us!) from the start, to make more of an opportunity like this. He was surprised when I started drooling over the potential of 2.3 million downloads!

Anyway, thought you all might find this interesting - certainly got me thinking not only about apps, but the psychology of online marketing, CPA, list building etc.
#app #cpa #iphone #lessons #results
  • Profile picture of the author Kenster
    Many CPA and IM strategies are upsell campaigns altogether with the intent of creating value and rapport with prospects by providing something way under the true value (or free) and then building a pipeline of promotion as upsells.

    It works, its been done forever, and its one of basic principles of IM.

    Another strategy people often pursue is giving things out for free or very cheap to build the brand name and brand presence. As we all know, a brand has a value so increasing the brand value by establishing a customer base and loyal customer base will reap benefits in future promotions.

    Very powerful stuff though.

    Thanks for the great post!
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    • Profile picture of the author JustMint
      Thanks Ken - yeah, that's what I thought.

      Still reeling at the thought of the 2.3 million prospects this guy could have out there!!!

      All they needed to do was plan their sales funnel better (or at all) and they could be cleaning up!

      Also, amazing what difference "free' makes compared to even $1.
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      • Profile picture of the author johnysc430
        can't he use mobile advertising to monetize the app?
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        • Profile picture of the author JustMint
          Originally Posted by johnysc430 View Post

          can't he use mobile advertising to monetize the app?
          There's many things he could do - I was really using the story as an example of the power of an initial free offer/content/value, and the difference it can make in response rates etc.
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  • Profile picture of the author Kenster
    This is the core strategy of listbuilding. You give something away for free initially to get tons of sign ups and then of course we all know the whole point is being able to upsell in one shape or form in the future. Its pretty much the same principle.

    Instead of upselling, another thing people do when giving away free software or free trials is implement a third party advertising campaign into the system. Thus you may get a free ebook or software or lite version of an app, but the developer will make money through the advertising implemented.

    Many strategies to make a buck right!
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