I know most of you are really into selling Virtual Goods in your games. I recently interviewed Ron Gavriely from SellInApp who presents another way of generating revenue from mobile apps.
Ron, can you tell me a bit more about what does your company “SellinApp” Does?
SellinApp helps mobile app developers generate revenue from the sale of physical merchandise. Its a complete end to end solution, that includes both the eCommerce code (a native SDK) as well as all the logistics needed (sourcing, billing, shipping and customer support).
That’s great. I know many app developers are looking to generate more revenue. Do you have an estimation of how much revenue a developer can make from Merchandising compared to Ads or In-App Purchasing of Virtual Goods?
These options don’t really compete with each other, as the same app can offer all these options at the same time. While you cannot have advertising within a paid app, you can still sell physical and virtual goods. In addition, virtual goods only work within certain app categories, mainly games, while physical merchandise works within any app.If I had to compare the revenue, I would say that physical goods outperform ads and are on par with virtual goods, depending on the implementation of course. While you can expect fewer sales, you can generate a lot more revenue when selling a $50 physical item then you can from a $0.99 in-app purchase to disable ads.
That’s a great point. The Merchandising revenue is truly incremental to any other revenue generated from the app and it sounds like it can add up to nice sums for developers selling high ticket items. Can you give some examples of popular physical merchandise items?
Every app has a different demographic of users and therefore offers different relevant merchandise…We offer car related accessories (windshield mounts and smartphone chargers) via navigation apps ($15-$30), musical instruments via music apps ($20-$70+), sports accessories in exercise apps ($10-$450) and branded merchandise in games (smartphone covers, t-shirts, hats and more for $15-$45). Developers earn %15 of any transaction generated in their app.
Nice selection indeed. Do you have any tips for developers who are interested in adding Merchandising to their apps? Is there anything that requires planning in advance?
Nothing is needed in advance, though it would be easier to integrate if they know where they want to add the “shop” button.If a developer wants to have custom printed merchandise, then having white backgrounds and images with only a few distinct colors would make the merchandise cheaper, but its not as critical as getting users to use their app 🙂
Yes, getting users is always the first step 🙂
Bonus question – What is the coolest piece of merchandise you have seen sold in an app?
The app isn’t live yet, but we will offer printed cake tops soon…We located a supplier that can print on sugar paper using edible ink and we plan on selling cake tops for a famous app brand I cannot yet disclose (but it has hundreds of millions of downloads, so you can try an guess who I am talking about). Its probably the most unique product we currently offer.
That’s great news and indeed a very unique Merchandise. Now I’m curious about which app it is :-).So Ron, If a developer is interested in using Sell In App, how does he get started?
Great. Thanks a lot for your time.