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Business app pitfalls to avoid

Monday, 13 August 2012 | By Oliver Milman

feature-droid-army-thumbApplication development for mobile devices such as smartphones and tablets is becoming big business, with the market hitting an estimated value of $20.5 billion last year.


In Australia, start-ups are eagerly jumping on the bandwagon, with high hopes of the likes of goCatch, an app that allows people to track and book nearby taxis.


The Federal Government has even got in on the act, shelling out $40,000 for an app designed to aid small businesses.


It isn’t just app developers that are cashing in either – a variety of businesses are adding apps to their offering in the hope of raising market awareness or driving sales.


But if you’re aiming to give your start-up a presence in Apple’s App Store or on the Android platform, it’s worth bearing in mind that there are several huge potential pitfalls.


Man-sized problem


It almost went horribly wrong for Michael Salmon and Francesco Fiorenza, founders of Sydney dating website AussieMen.


The duo has built a thriving website that has become a market leader since it launched in 2008. Last year, they decided it was time to create a complementary app for the App Store, only to find themselves stymied by Apple.


“We applied for the app, they asked some questions about the site and the payment gateway and then, two weeks later, they rejected it,” says Salmon.


“They said that the images on the site were unsuitable for the App Store. We did know that they have very strict rules on adult content, but we have our own restrictions on the pictures people can post in their profiles.”


“We got rejected for shots of people with their t-shirts off in footy shorts. This was considered pornographic.”


“We could’ve re-rated all 350,000 pictures we have on the site, but that would’ve taken forever. It’s an issue that a lot of dating sites from around the world, as well as a lot of websites with plenty of images, have with Apple.”


Payment woes


Getting turned down for inappropriate content was just one problem the business faced. Salmon says that Apple’s payment model – in which the tech giant takes 30% of revenue made through apps in its App Store – was also problematic.


“We have 150,000 members and already have our own payment system but Apple said ‘no, you’ll have to use our payment system,’” he explains.


“If you are launching an app with a brand new site, it’s logical to take on Apple’s system, but we can’t just overnight give up 30% of our revenue.”


“The site is so much more in-depth than the app so the danger was that people would all pay though the app, get all the benefits of the site and we’d get 70% of it.”


Salmon had other concerns over the app process too, such as the updates that force users to re-download the whole app again, rather than for bugs and updates to be automatically sorted out.


The rise of the web app


The solution? To create a web-based app, a fix that Salmon says increasing numbers of new businesses are turning to.


“The main benefits that are driving companies to web-based apps are the ease and cost,” he explains.


“You have one technology and one platform, whereas if you made an app for Apple, Microsoft, Android and BlackBerry – that’s four different programmes right there. Francesco (who is AussieMen’s technical chief) would’ve taken six to nine months to learn the technology for each, rather than spend six months on just one app.”


“With a web-based app, you make it once and put a wrap on it so that it can go into the relevant app store, which takes about 30 minutes.”


“We now have an HTML 5 website that works just like an app – it’s geo-coded so it can tell where you are. You can’t tell the difference between it and an app. Plus, you can use it on any device.”


Salmon says that start-ups should think carefully about their app strategy, rather than blindly follow everyone else.


“You need to consider your whole business model – if you need a global audience, the App Store is critical,” he says. “But if you have any concerns about censorship, you‘ve got to take that into consideration.”


“Think about how it fits into your business. Will you want 30% going to Apple for that audience? If you have a button that takes you from the app to your site to fulfil the payment part, can you cope with 100,000 people coming at once?”

Five top tips to get ahead in the App Store


If you’ve decided that the App Store is for you, it’s essential that your business stands out from the crowd, or it will risk being smothered by the huge quality of apps in the marketplace.


Broccol-E-games is one of the start-up graduates of the 2012 Melbourne accelerator program, AngelCube.


It launched its iPad game “Maths with Springbird” in July, was featured in the iPad App Store and has since reached the top of its category in the Australian and New Zealand iPad App Stores.


The business’ founder David Truong shares his five top tips on how start-ups can get featured on the App Store and drive more sales:


1. Have a high quality and polished product


“If you're putting a minimum viable product (MVP) on the app store, don't put all your marketing efforts behind it,” says Truong.


“Just watch, learn and speak to customers. Implement their feedback and continue to improve your product. When you have a polished product, launch it with all the marketing assets you've built. Make a big deal out of your polished product, but not your first version.”


“For Maths with Springbird, we officially launched with our version 1.4 product and put all our marketing efforts behind that release.”


“We subsequently got featured and have since reached number one on the iPad educational App Store in Australia and New Zealand.”


2. Make use of Apple's technology that helps them sell more hardware units


“Remember that Apple is a hardware company, so they ultimately want to push hardware sales,” he says.


“Making your app Retina display ready will help increase the uptake of Retina iPads and iPhones. What other new iOS features can you take advantage of that may also help Apple sell more products?”


“Maths with Springbird was originally built for standard resolution iPads. Although it took us a lot of time to convert all the graphical assets to Retina resolutions, it ultimately paid off for us – in terms of getting featured and having a great looking product for our users.”


3. Do something really well, instead of trying to be everything


“Instagram did sharing photos really well,” says Truong. “What is your product doing really well?”


“Maths with Springbird does practising maths, virtual incentives and gaming really well for young children.”


“We don't try to sell to the casual gamer, because that's not what our product does well. Because we were focused on what we could do really well, we became better than our closest competitors and were noticed by Apple, leading to getting featured.”


4. Be new


Truong advises: “Always update your products with valuable updates. Look at all the currently featured products and take note of when they were last updated.”


“Maths with Springbird wasn't updated for a while and we found our downloads and rankings drop considerably.”


“We then released two major updates within a week of each other and saw a spike in downloads, a feature, and a number one spot.”


“These updates were, of course, improvements that our customers wanted.”


5. Show that you care


“Do you read all the app reviews for your product?” says Truong.


“Do your update descriptions consist of only 'bug fixes' and nothing more? Why not show Apple that you're improving your product by listening to customers.”


“In all of Maths with Springbird's updates, we highlight exactly what we have implemented and why.”


“This shows that we are listening to our customers, providing a high level of customer service, and willing to modify our product to what our customers want.”


“This also helps with customers who haven't yet upgraded to the full version but are waiting for a certain feature to be implemented before they purchase.”