This is post #2 of my 8 post series on my first year in the App Store.
You can read the full series here
tl;dr We can estimate how profitable an app is using Gross and Paid Rankings. This helps us decide whether it’s a good niche to get into.
When I was considering building my Spanish Bible app I wanted to be as sure as possible that people were going to be able to find it & buy it. With that in mind I came up with the idea of the ideal target niche.
The ideal niche:
1. Is profitable 2. Can be found through search 3. Has crappy competitors
Today I’m going to explain how to figure out #1.
Step 1. Find an app that ranks #25 Paid
I found two apps in the Business category that have a history of ranking around #25 Paid. You can see their historical Paid rankings below via AppFigures:
Step 2. Calculate the apps’ daily revenue using Distimo
Last year I asked the nice folks at Distimo to analyze how many downloads it takes an app to rank #25 Paid by category.
You don’t even need to read the whole post, just this one chart:
This means our two example apps are being downloaded roughly 90 times a day. We can estimate their daily revenue by multiplying their prices by 90.
Step 3. Look up Gross Ranking
Easy with AppFigures: Eyeballing the charts it looks like their average Gross Ranks are #13 and #50, respectively.
Step 4. Plot the Data
This is what we’ve collected:
Plotting it we get this:
This gives us an estimate on how much apps in the Business category make.
But estimating a niche’s profitability is only part 1 of the ideal niche. We want something that’s profitable and not swamped by competition.
In next Tuesday’s post I’ll write about how to pick a niche where users will find you via the best distribution channel of all – App Store search.
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