Appbackr is the first crowdfunding platform developed specifically for mobile application development. With a funding structure tailor-made for the app industry, and support for iOS and Android apps in the making, it's a versatile crowdfunding platform and welcome addition to the app industry. It's made for both completed apps and apps in development, and lets developers and backers share in the profits. Keep reading to find out if Appbackr is for you!
The Economics of AppBackr:
Although both "backrs" and developers make a profit off of the finished app once it hits stores, Appbackr doesn't use equity as part of this equation. The potential profits for backers and developers depend on if the app is a 'concept app' or a 'finished app'. A concept app isn't yet part of an app store, whether this means the app is still in development or waiting to be approved for sales.Â A finished app is one that is currently being sold in either an iOS or Android app store.
Appbackr for Backrs:
The returns for backers vary among concept and finished apps. For concept apps, backers can expect to make 54% profit on their investment, and for finished apps backers can expect a profit of 26%. Backers choose an amount of wholesale apps to purchase, and then receive this profit on each of their purchased copies of the app. Once all of the backers wholesale apps have sold, the backer stops receiving profit from the app.
Using Appbackr is pretty safe from an investment perspective. Backers are paid based on the payment schemes of the Apple and Google app stores, and the payment is either sent to Appbackr or the developer. In the first case, Appbackr will send payment to the backer within five days, and in the second case Appbackr will invoice the developer within five days and the backer can expect to see the funds shortly thereafter. Also, backers don't have to worry about potential unsold shares of the app - the app will remain on the market until all backed copies are sold. In the case that the app is pulled from the app store, the developer is responsible for paying the backer the revenue he or she is owed.
Appbackr for Developers:
What this structure means for developers is that they maintain complete creative control throughout the funding process, but are able to secure development funds ahead of time. The process begins when the developer puts an app for sale on the Appbackr marketplace. When a backer decides to purchase a bulk amount of the app, the developer immediately receives a portion of this payment, which can then be used for further development or distribution. Once the app sells on either Apple or Google's app stores, Appbackr receives a payment from the respective store and then divides the profits between the developer and backer.
Appbackr bases its numbers on apps that sell for $.99. For every $.99 concept app that sells in a retail app store, the developer will make $.10 from the app store and $.25 from Appbackr. For every $.99 finished app that sells, the developer makes $.45. One perk of using Appbackr is that unlike other crowdfunding sites, there's no additional fee on total sales. Also, Appbackr covers Paypal fees, which can save developers with high-selling apps substantially.
Browsing Apps on Appbackr:
Regardless of your role in the world of mobile apps, it's worth it to check out the Appbackr site to find out where mobile apps are headed. It also doesn't take much capital to get involved in app investment - as little as $10 can make you a $15 return. In addition, Appbackr lays out the projected economics for each app so you can feel confident in your investment.
All prices as of October 2012.