Are some app writers greedy?
I have noticeed a trend nowadays for app writers too rent out their apps at £x a month. This is sheerr greed in most cases. The only legitimate case for this is if they have to rent business premises and employ staff to give massive backup. If this is the case, there may be a fault in the app. Some app writers say its because they have to rent cloud space? Bxlloxxs, what's wrong with a link to Dropbox, Drive, or if you want security, pCloud?
Take an app with 380,000 users containing advertising. They get an ongoing income, probably not that large, but they offer an upgrade for an app with no advertising and some extra benefits for £2.75. Supposing 170,000 decide to buy it as they love the app and want to support the writer. That’s an income of £467,500 – without the advertising income of the non-purchasers.
Now supposing there is a similar app someone is renting at £1.25 a month. Supposing they only have 85,000 users. That is a regular income of £106,250 but this is per month. One person is paying £1.25 a month which is £15.00 a year. Suppose he uses it over a ten year period? Thats £150.00 you’ve paid. And, overall, the app writer makes £12,750,000 – nice work if you can get it.
Take Quickbooks invoicing. £9.99pm = £119.88pa = £1,198.88 in ten years. And that’s for the app.
My advice here is, do not rent software if you can help it. An exception could be that you are in business and the app will save you more than the cost, and you can write it off for tax purposes.
I have set up and run five businesses in my life, selling them when the work has become boring and there were no more “challenges”. Annual spreadsheets normally show Income and expenditure. Mine showed Income, variable expenditure and fixed expenditure. (as an example, telephone equipment came under fixed and calls – fixed were fixed - line rental which I couldn't control - calls out which I could control came under variable. I never miinded fixed expenditure too much, but came down on variable expenditure hard.
This probably why I detest rental!