Creating an app can use up a lot of your time and resources. There is nothing more devastating than going through all of that hard work and not making any money (i.e. due to change of application development trends). The next time you come up with a grand idea for an app, you may not want to put the development into motion because you are afraid of failing again and constantly thinking of how much does it cost to create an app for you. When you believe that your new app has the potential of going somewhere but you do not want to risk losing everything again, you can use app crowdfunding to reduce those dangers.
Explore the different app funding sources that not only help in funding your application but ones that also give you feedback on your creation and ideas on how you can make your new app more popular.
Why Should You Use Crowdfunding?
When you think of crowdfunding, you may be thinking that you are using this method to fund all aspects of your app. However, that is not always necessarily the case. In many instances, you can use crowdfunding to get money to develop certain parts of the app individually. You could also obtain funds to advertise an existing application that is already available to customers. The main purpose of crowdfunding is taking the idea or application you already have and make it better.
By putting your application on one of the crowdfunding platforms, you can also get a better idea of how interested customers are going to be in your creation. If you do not get any funding, you will know that you need to put some work into your app to make it more desirable to those seeking out apps.
When the funds start coming in, you can feel more confident that you have something that customers want. These platforms also allow for users to provide you with feedback on what you have made so far. This will help you in making changes and set you off in a better direction. This, in turn, can allow you to create apps that make you money.
Creating a Quality Network for Better Advertising
Through crowdfunding platforms, you are going to establish a much greater network of people interested in your type of product. Through networking, your name and your product are going to reach the eyes and ears of many more potential customers making you more profits.
The word-of-mouth and having a few quality applications already in your portfolio are going to be the keys to your success as an application developer. If you do not already have a solid network of supporters, now is the time to get one.
Choosing the Right Crowd Funding Platform for Your App
Explore the following crowd funding platforms to discover which ones will work best for you and your app. Each one offers different aspects so that you can choose the one that will make you the most successful.
AppStori is a platform that is only open to US residents. This is app-specific, and these apps are made for the iPhone App Store and Google Play. You get to set your goal for funding, and you decide what rewards to offer in exchange for funding. If you do not reach your funding goal, you do not get any money. You also cannot get more money than what you have asked for.
The qualified experts from AppStori will take a look at your project and give you an honest opinion on whether or not it will be victorious. This is what they call the pre-qualification process. After they have given you the go ahead, you will start to create the advertising for your app.
AppStori takes a 7% cut of your earnings, and Amazon takes 2-3% for the credit card processing.
In your AppStori blog, you can post developments and read comments related to your app so that you can make changes that your customers want to see. This is a newer and smaller platform so you have a better chance of your idea being seen if you choose AppStori for your app crowdfunding.
With Indiegogo's non-app specific platform, you get to choose your funding type. Flexible funding allows you to keep your funding raised by a specified date regardless if you have reached your goal or not. Fixed funding is one that returns funds to supporters if you do not reach your goal.
When you use Indiegogo's platform, you keep your app in your hands 100%. Using different rewards you gain the attention and hopefully the contribution from potential funders. There are many tips and tricks that Indiegogo shares with you along the way to make your crowdfunding attempt successful. Make sure that you make your app stand out and appealing from the get-go, and you are sure to get the funding you are looking for by using this well-known platform.
AppBackr is app-specific and only used for iPhone's App Store and Google Play. This platform allows you to get funding for applications already developed and available to customers. It can also be used for the development of a new app.
Backrs wishing to give funding for your app are told what your app is, what marketplace it is available on, what the money is going to be used for, and why they should fund your app. You get to set a goal that corresponds with how much money you need to raise for your app to start making money. When this goal is met, your Backrs will then start to earn money back.
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When you reach your goal through the purchase of copies by your Backrs, you will get the funding you have requested delivered to your PayPal. You can then get to work in the developing and promoting of your product right away. When you start making money, you can pay your Backrs. If you don't reach your goal, no money is ever exchanged.
The idea behind AppBackr is that your funders get to make money off of your product. When you start to make money, you pay them back more than what they had initially invested in your idea. After your Backrs are paid back their initial investment plus the amount of profit they have been promised, all the funds that come in go directly to you.
Kickstarter is a platform that is not app-specific. This is only open for campaign creation in the United States. It allows for you to take a creative approach to developing your app into something successful. Kickstarter is perfect for earning a small amount of funding that makes it ideal for apps.
In the Kickstarter platform, you set a goal for how much money you need to get in order to adequately fund your app. When the goal is reached, Kickstarter takes 5%, Amazon takes 3-5% for credit card processing, and then you get the money.
When crowd funders give you money on the Kickstarter platform, they do not get ownership in your product, and you do not have to give them any of your earnings. Through the rewards you offer these individuals they decide on whether or not they want to put their investment in you. You get to decide which rewards you want to offer in exchange for funding. You should make sure that whatever you decide on is something that is interesting, exciting, and accessible.
Kickstarter's main goal is your success. You can review their training page to gain useful ideas on how to describe your app as well as what rewards funders respond to and how to promote your product. Because Kickstarter is not app specific, you have to opportunity for more prospective funders to see your development. However, with there being so many apps posted here, yours can get lost in the shuffle.
AppsFunder is app-specific, and it is only used for the iPhone App Store and Google Play. During the setup process, you get to set two different milestones, and you have the ability to set more later. You will define what the money given to you by crowd funders will be used for. This will give the Funders an idea of what they are investing in, and it gives you the ability to keep progressing with your app as funds come in. Funders will have immediate access to your app for free when they give the set amount you have put in place (between $1 and $5). You also get to decide what Funders will get back in relation to the revenue that has given to you.
You set your goals and your timeframes. If the money you need has not been raised by the deadline, all Funders get their money back. When you have reached your goal in the specified time, you get 80% of your funds delivered to your PayPal account. The rest of your funds will come in when your app goes live on the mobile app store. AppsFunder takes an 8% cut for the use of their platform.
One beneficial feature is the ability to have your app reviewed by one of the app experts. Their approval can give you an advantage when potential funders are looking at apps to support. You can also post updates on your project, and customers can leave feedback so that you can give customers what they want and put more money in your pocket.