Lessons from the AppGratis experience

For those who haven't been following French tech news, there's an interesting story going on between AppGratis and Apple.

Background

AppGratis has been founded back in 2009 when iphone apps were kicking up. As others business like AppShopper, AppGratis was giving an app for free to its followers for one day only. We all know those businesses have been very successful so far because they connect 2 needs: a customer need to get something valuable for free and an app developer need to get your app ranked and known to the market. When you know that there are 1,2 millions iphone apps and 300,000 ipad apps, there is definitely an issue to get market awareness.

Is there anything more important in the Tech news?

The Story

AppGratis developed its own iPhone app and recently its own iPad app. It's been ousted from the AppStore on April 7th with very little explanations from Apple, which was perceived as a scandal in France, the media picturing Apple as the bad guy vs. the French startup world. Even the Digital Economy Secretary of State, +FleurPellerin, made a public appearance at AppGratis business site to show support against the great injustice. AppGratis has now started an online petition  to get public support.


What Apple says

Apple stated that AppGratis's App has violated 2 AppStore rules:
"- 2.25 Apps that display Apps other than your own for purchase or promotion in a manner similar to or confusing with the App Store will be rejected.
- 5.6 Apps cannot use Push Notifications to send advertising, promotions, or direct marketing of any kind."

Apple doesn't like App Store rules violations

AllthingsD believes that Apple are started cracking down AppGratis and similar apps because they say they were troubled that AppGratis was pushing a business model that appeared to favor developers with the financial means to pay for exposure. “The App Store is intended as a meritocracy,” a source familiar with Apple’s thinking told AllThingsD.

I believe that behind that beautiful thinking, Apple also protects its market: you want to promote your App, use Apple tools or get ready to live dangerously. As I stated earlier, App Store customers are Apple customers before being yours, so don't feel home and respect the rules.

What does that tell us?

It's going to be harder to "manipulate" rankings from within the AppStore but it doesn't mean paying for promotion is going to disappear, it's just going to happen on more traditional websites. 

I would add AppGratis and the likes are not going to be out of business because they are not on the App Store any longer. As AppGratis CEO +SimonDawlat stated it, this story is an incredible chance for them since they are getting almost free advertising. For sure. But it will not last forever and they are not alone on this market. That's why I believe AppGratis business model will probably evolve to market analysis.

AppGratis type firms future is in customer intelligence 

Think of it: they have thousands if not hundreds of thousands regular users. They can measure campaign success according to customers profiles, a very high value information for any app developer. If you've been using iTunes Connect, you know that this kind of information is just not available! The only thing you get from iTunes Connect is the number of App sold per country and that's it. Market analysis is pretty much what companies like AC Nielsen were doing in retail, only now we are on virtual retail.

Getting more customer insight is a real challenge, if these companies would understand the value they could bring they will securitize their market position for a long time without any need from Apple approval.

First days on the App Store

Provided you set your sales to all available App Stores, you are now "ready for sale".

What happens next?

Well in the first few days, you will be featured in the News section of the App Store, meaning you are sitting in the front page: everyone who opens its App Store app during that period will see your app. Result: if your app is good and you are not pricing it like a luxury item, YOU WILL SELL. And believe me numbers can be surprising.

Success is surprising in the first days

A lot of people will buy out of curiosity or just because your app looks good. Reality is that they buy it because you are visible.

An example on the French App Store

Think of you app as any store in the world: If you are sitting on Rodeo Drive or the Champs Elysées, thousands of people walking by a day, part of them will stop and some of them will buy. The more pass by, the more you sell, nothing more simple.

Provided you are damn sure that all the major bugs have been identified and corrected, my advise is to take advantage of those days to do 2 things:
- Communicate on every media available about your app being out, it will eventually help you be ranked
- Use viral marketing: Insert all the relevant "like" buttons (Facebook, LinkedIn, Tweeter..) so your new users can communicate on their incredible experience.

And get prepared. A few days, a week, maybe more?

Toutes les bonnes choses ont une fin, all good things have an end. One day you are out of the news and your sales will drop. And boy that hurts

That's how it feels when you are out of App Store News

As of March 2013, there are 1,2 millions of iPhone apps and 300,000 iPad apps and you will need to crawl your way out from red sea to blue sea and it can feel very long but don't despair: this blog will keep giving advise, so keep faith and keep posted!