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10:54 pm
March 5, 2012
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Buck Inspire
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Hi all,
A friend and I got into a heated debate. Which product is more successful? An iPhone app which costs 99 cents, sells 10,000 units in two months or a training package with props for $40 with 5000 sales in a year. 
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12:00 am
March 6, 2012
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jonrhodesuk
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The one that makes the most cash I guess! It's funny – I have just been writing a post about which affiliate programmes are the best, it should be up some time today. I would say that it largely depends on the demographics of your visitors. If you had loads of younger people/teens for example, then you would probably sell more of the cheaper phone apps.
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4:53 am
March 6, 2012
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Glen Craig
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Which has more profit and more opportunity for future sales? You can sell 10,000 apps but if you're still in the red and it's a quick fad then what does it really mean?
What's the purpose of selling each ? (like, could the app be more of a resume/company builder for future software)
What do you measure as success?
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8:08 am
March 6, 2012
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This That And The MBA
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I agree with Glen. What are you using as your measure of success? What is your profit margin on the app and the training package?
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8:23 am
March 6, 2012
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Van Beek
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Glen Craig – Free From Broke said:
Which has more profit and more opportunity for future sales?
Yes, I agree with Glen that you should also look at future sales. The more successful product turns the customers into raving fans who want to buy your future or other products as well. Business is a marathon, not a sprint.
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11:51 am
March 6, 2012
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Eric – PersonalProfitability.com
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Long term revenue generation is success in my book
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7:16 pm
March 6, 2012
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Daisy
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How much time does it take to develop and administer both of these? the one that makes the most amount of money, with the least amount of time and resources, long term :)
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10:53 pm
March 6, 2012
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The Passive Income Earner
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In one entertaining industry, there is a move to do freemium :) It's all about the number of users you can reach over time.
If you look at the App Store, the free apps are now practically most of the top grossing apps too – Smurf anyone?
If your example had a timeline and no updates (i.e. put a product on a shelve) as opposed to a digital products that responds to feedback, then you take the top grossing. Otherwise, I would pick the cheapest item and look for other ways to monetize with it with the largest reach.
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11:30 pm
March 6, 2012
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Buck Inspire
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Thanks all! What a great collection of intelligent answers. I initially thought the higher selling item was more successful. In my mind, it's harder to sell a $40 item than a $1 one. Also, when you total the gross, $200,000 is greater than $20,000. My friend countered with the manufacturing of the $40 item is probably greater than the 99 cent app. So more info is needed to determine net profit. Thanks again all! 
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5:27 am
March 7, 2012
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Glen Craig
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I initially thought the higher selling item was more successful. In my mind, it's harder to sell a $40 item than a $1 one.
Just because a Porsche is expensive it doesn't mean the Porsche dealership is doing much better than the Honda dealership.
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5:39 am
March 7, 2012
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Smart Wealth
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Very interesting thought Greg, I like that analogy.
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6:26 am
March 7, 2012
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Jackie
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It depends on your definition of "successsful" in this case. If it's to get the product to as many people as possible, the app. If it's to make as much money as possible, the training package.
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4:53 am
March 10, 2012
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Liquid
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Which ever one makes it on to Dragon's Den first.
Marketing has huge influence on these things. Assuming no marketing was done on either product then the training package sounds like a bigger success to me because it's something tangible and created jobs in the economy from industrial design to manufacturing to retail/distribution. But if half a million dollars was spent for an infomercial to achieve 5000 in sales then the story becomes less impressive.
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5:02 am
March 10, 2012
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MyCanadianFinances
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But Iphone apps are marketed and advertised automatically by Itunes. Aside from submitting it, there is little you can do to promote it.
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3:33 pm
March 10, 2012
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Parenting and Money
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iPhone apps can be marketed through reviews. I have bought apps based on reviews I found online.
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2:58 am
March 13, 2012
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theycallmecheap
| | Washington, D.C. | |
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I'm going with the one that generates the greatest amount of profit overall. Some products introduce you to customers who'll continue to buy from you in the future. In which case, I'd attribute future sales to the initial product.
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Shawanda Greene
Blog: YouHaveMoreThanYouThink.org – "A reality check to financial freedom."
Twitter: @TheyCallMeCheap
Email: TheyCallMeCheap@gmail.com
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