Putting a monetary value on your app idea is difficult. Even the greatest app idea can fail if it is executed poorly, and similarly a mediocre idea can be successful if executed exceptionally well. I read an interesting article by blogger Derek Sivers recently where he describes an idea as a multiplier for the execution. Here is a chart put together by Derek:
|AWFUL IDEA||= -1|
|WEAK IDEA||= 1|
|SO-SO IDEA||= 5|
|GOOD IDEA||= 10|
|GREAT IDEA||= 15|
|BRILLIANT IDEA||= 20|
|NO EXECUTION||= $1|
|WEAK EXECUTION||= $1000|
|SO-SO EXECUTION||= $10,000|
|GOOD EXECUTION||= $100,000|
|GREAT EXECUTION||= $1,000,000|
|BRILLIANT EXECUTION||= $10,000,000|
While I don’t necessarily agree with Derek’s figures, he raises a very good point – The real value in an idea is only realised when the idea is executed, which means the real value is in the execution. This I agree with completely.
A few factors I would add into Derek’s equation include timing and luck. Even a great idea executed well still needs to happen at the right time, and a bit of good luck always helps too.
So what kind of value can you put on a well-executed app?
According to Sensor Tower, a reputable App Store optimization and reporting tool, these are the estimated values of some popular apps you may have heard of:
- Clash of Clans – $1.8 Billion
- My Fitness Pal (Calorie tracker) – $575 Million
- Instagram – $3 Billion
- Uber – $133 Million
- Flightboard – $850,000
- Crossy Road – $68 Million
- Gumtree Australia – $2.2 Million
- Ookla Speed Test – $73 Million
- Evernote – $103 Million
- Snapchat – $432 million
- Flipboard – $27 Million
It is worth noting that Sensor Tower reports an estimated value of just $7 million for Angry Birds which I think is probably a bit off the mark, so it may not be accurate 100% of the time.
Of course the examples above are some of the most successful apps available and there are many more apps that don’t make any profit at all, but it is good to know what is possible.
If you are looking for an app developer that specialises in exceptional execution to work with you on your app idea, you are in the right place. Contact us now to book a free consultation with our app experts.
– By Joe Russell – DreamWalk GM