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Appbackr is dedicated to advancing the mobile app industry by creating a wholesale digital marketplace. By applying the time-honored wholesale model to the digital age, we solve common funding and distribution problems of application developers.
Appbackr is recognized as an innovator, receiving the distinguished PayPal X Developer's Challenge Award, SVASE/Cambridge West Seed Fund Award and named to AlwaysOn Global 250 and OnMobile 100 List. You can read all of appbackr's press in our Press Room.
We are headquartered at 200 Hamilton Avenue in Palo Alto, California. To connect with us, send us an email at [email protected].
Appbackr is a wholesale digital marketplace. We enable app developers to find backrs who can help fund applications and drive sales. On our marketplace, a developer receives payment from a backr for a designated number of app copies, done via PayPal. When the purchased copies are downloaded in retail app stores, the developer receives an additional payment and the backrs profit. Our economics diagram helps explain this process.
Our economics are shown in the diagram below. This calculation is based on an app posted on appbackr as a live app and later selling in a retail app store for $0.99. Costs and proceeds vary based on several factors.
It's important that you understand these numbers and how different factors affect them. We've created a concise chart DISTRIBUTION AGREEMENT CHART that shows the purchase prices and proceeds of different app types in our marketplace. We detail the economics for developers, backrs and appbackr.
A concept app is an app that is not yet available for sale in a retail app store. The app may still be in development or finished and waiting to be approved by the app store. Prior to October 22, 2012, developers of Concept apps received funds as soon as their reserve goal was met. As of October 22, 2012, Concept app campaigns are no longer available. Developers can now run Pre-release app campaigns.
A pre-release app is an app that is not yet available for sale in a retail app store. The app may still be in development or finished and waiting to be approved by the app store. Developers of Pre-release apps receive funds as soon as the app is ready for the app store.
Beginning Oct. 22, 2012, campaigns for app that have not released will be renamed from "concept" apps to "pre-release" apps.
Pre-release app campaigns that raise money on appbackr will receive their funds as soon as the app is ready for the retail store, not during development.
The new pre-release app campaign makes it easier for developers to raise money because it removes backrs' #1 concern - 'What happens to my money if the app doesn't launch?' This concern is the biggest barrier for developers raising money for pre-release apps on appbackr. By removing this, developers can assure their potential backrs that their money will be used to get more promotion and distribution for the app at launch, a crucial time in the lifecycle of the app. All of this should help to get more downloads and repay backrs sooner.
As of October 22, 2012, apps listed as "concept" apps will be apps that are under the previous model and received funds when the reserve goal was met, prior to launch. If these apps do not launch within 15 days after the 30-day launch date window, backrs may ask for a refund of their purchase. If the app does not reach its reserve goal, the pre-approval purchases will be voided.
"Pre-release" apps will be apps using the new funding model. Money raised by backrs will be held be appbackr until the day the app is ready for the retail store. Developers will be able to track the total amount raised and create a distribution plan around that budget, including buying distribution on appbackr Xchange.
If the app has not launched after 60 days after the 30-day window, backrs will be refunded, either by check or PayPal (backr will pay additional PayPal fees) from appbackr.
Previously, developers were required to set a reserve goal for each app campaign.
Reserve goals are a minimum amount to raise for the app.
Removing reserve goals makes it easier for backrs to back apps. Apps can be backed with any credit card via PayPal. Reserve goal preapprovals were only able to be purchased with PayPal accounts.
Removing reserve goals makes it easier for developers collect all the money intended for their app. Purchases made before a reserve goal were met may not be completed because backrs may not have the funds in their PayPal account.
If a developer does not raise enough funds, she can refund backrs at any time for their purchase by contacting appbackr. If the developer refunds the money within 45 days after receiving the funds, PayPal will refund all fees.
Appbackr calculates the wholesale price of apps based on the retail price. Backrs have a potential profit of 26% on their purchase.
Please note, prior to October 9, 2012, backrs of concept app had a potential profit of 54%. Concept app campaigns are no longer available on appbackr.
Free apps with in-app purchases use appbackr's $.99 pricing structure to determine the wholesale price. The wholesale price is used to set the reserve goal and maximum number of copies available.
As the in-app purchases are downloaded, appbackr uses dynamic pricing to payback backrs in $0.99 copies. For example, a $4.99 in-app purchase will payback 5 backed copies.
For concept apps, appbackr counts sales as soon as the app is available in a retail app store. For retailing apps, appbackr counts sales beginning the day after a backr purchases copies on appbackr.
“Appbackr brings the “crowd” factor to the equation and aims for the sweet spot where VCs don’t play. If you are looking to raise some cash up front to fund your development or marketing campaign without having to deal with VC’s term sheets and give away an ownership stake in your company, then appbackr is a great option.”
-Jim McClafferty, Founder of Brain Parade, and Creator of See.Touch.Learn.™
“Since my appbackr campaign and the money I have been able to put into marketing from the campaign my sales have increased 600% from the same time last year!”
- Justin Davidson, Creator of “Bugs in the Garden” App
“We see appbackr as a great way to provide cash up-front, while allowing wholesale buyers to profit and friends and family to take a small stake in our success”
- Steven Echtman, Founder of HearPlanet
Still have questions? We're here to ensure you thoroughly understand our marketplace so that you can make the best decisions to reach your goals. Email us at [email protected] or click our chat button and one of our friendly staff members will assist you.
Developers can post campaigns for apps that are retailing or pre-launch. A backr makes a profit of 26% when he backs an app.
For a $0.99 retail app, a backr makes $.19 on a concept app or $.12 on a finished app. For a $4.99 retail app, a backr profits $0.96 on a concept app and $0.60 on a finished app.
Check our economics section above for additional information.
No, backrs profit when the backed app's copies sell in the retail app store. When all purchased copies have sold, the backr no longer profits.
Backrs purchase copies in sequence on appbackr. Appbackr counts the sales in the retail app store to track each backr's purchase. For example, the first backr purchases 10,000 copies of an app in the appbackr marketplace. That backr profits when the first 10,000 copies are downloaded in the store. After all 10,000 copies have been downloaded, the next backr profits.
Prior to October 2011, appbackr offered the simultaneous distribution to concept apps. Under the simultaneous distribution, backrs were paid a percentage of retail sales each month based on the number of copies they purchased, divided by the number of total copies sold on appbackr.
For example, app123 has 10,000 total copies sold for purchase on the appbackr Marketplace. Backr1 purchases 2,000 copies and gets 20% of the profits, backr2 purchases 3,000 copies and gets 30% of the profits, and backr3 purchases 5,000 copies and gets 50% of the profits, simultaneously.
We no longer offer the simultaneous distribution option.
Backrs get paid at different times depending on the retail app store that sold the app. Apple, Inc. remits payment for monthly app sales at the end of the following month. Google remits payment for monthly app sales and the beginning of the following month.
Depending on the developer's payment distribution method, the payment is sent to appbackr or the developer. If appbackr is receiving the payment, appbackr sends payment to the backr and developer within 5 business days of receipt. If the developer is receiving payment, appbackr invoices the developer within 5 business days. (If an exception arises, appbackr notifies the backrs and developers within 2 business days.)
Backrs can view monthly sales reports and the daily run rate of purchased apps on the appbackr dashboard.
A backr will continue to profit on an app's retail sales until all backed copies sell. If a developer removes the app from the retail app store before all backed copies have sold, the developer will pay the backr the revenue owed.
A developer can presell copies of an app that is pre-launch or already in a retail app store. Prior to October 22, 2012, in the concept stage, the developer makes $.35 for each $0.99 copy ($0.25 when backed on appbackr + $0.10 when sold in the retail app store).
For an app already for sale, the developer makes $0.45 for each $0.99 copy ($0.35 when backed on appbackr + $0.10 when sold in the retail app store). If the app is purchased in a currency other than US Dollar, the amount received from the retail app store sale may vary, based on foreign exchange rates.
In exchange for receiving immediate funds from backrs, developers are giving up a percentage of their retail app store sales. The developer is not selling permanent rights to the sale of an app nor the intellectual property, only copies of the app. Once the purchased copies have sold in the retail app store, the developer reverts to the normal distribution as defined by the retail app store.
There are no additional fees for developers.
appbackr reviews apps submitted to the appbackr Marketplace as soon as we have access to the developer's retail sales account.
Apps appear on the Featured page if:
It's important to have a plan to get backrs for your app from your contacts. Generally, the apps that get backed on appbackr by the appbackr community are the ones that have already been backed by the developer's network. When you start your campaign, email your contacts, post the campaign on Twitter, your Facebook page, and post a link to your page on our Facebook page: http://www.facebook.com/appbackr, add it as a footer to your email, guest blog about it, and contact relevant blogs and LinkedIn groups.
If you have any questions, email [email protected]
If the app is currently retailing, the developers immediately receives the money when a backr purchases an app. The money is sent through PayPal.
If the app has not launched, the developer receives the money as soon as the app is ready for the retail store. When a backr purchases an app, appbackr will withdraw the funds from the backr’s PayPal account and hold the money until the developer completes the app. The developer can track the amount raised via the appbackr dashboard.
As of October 22, 2012, appbackr has removed requiring a reserve goal for app campaigns. Developers can now know for certain exactly how much money has been raised for their app. This also enables backrs without a PayPal account to back apps with a credit card.
For campaigns on appbackr prior to the change, the reserve goal is the amount of money that must be raised before the developer receives the funds. Prior to the meeting the reserve goal, backrs' purchases are preapproved by PayPal but not completed. When the reserve goal is met, all backrs' purchases are completed and the developer receives the funds, minus appbackr's fees.
The reserve goal should be the minimum amount the developer needs to achieve the campaigns goals in the "What is the money for?" section.
Yes, developers can post an iOS version and an Android version of the same app on appbackr as two separate campaigns. The two campaigns will be independent of each other, a backr purchasing an iOS version of the app will not profit from an app sale in the Android marketplace.
All versions of an app built on the iOS operating system are considered the same app on appbackr. When an app is backed, retail sales of all versions (iPhone, iPhone HD, iPad and Mac) count towards fulfilling the backrs' purchases based on dynamic pricing.
Yes, developers can change the app price after a backr has purchased copies. The number of copies purchased by the backr will be adjusted based on the price change.
For example, a backr purchases 100 copies of an app with a retail price of $1.99. The developer lowers the retail price to $0.99. The 100 copies purchased at $1.99 will be considered 200 copies of the $0.99 app.
Yes, developers are encouraged to update their app details page with additional images and text.
appbackr Xchange is a wholesale market exchange for apps, providing distribution of mobile apps to stores on a cost per install (CPI) and pay per install (PPI) basis. Using a machine-learning algorithm, appbackr brings the best apps to the best stores and optimizes revenue.
Developers need organic sales with profitable options. Carriers, OEMs and stores all need to differentiate their offering to attract consumers. Xchange solves both of these issues. Apps are driven to the right app stores to maximize selection, profit and distribution with minimum effort.
Developers use Xchange to create CPI offers to stores and receive PPI from stores. Generally, CPI campaigns on appbackr are more affordable than ad networks.
Stores monetize their retail app stores by offering developers placement on a PPI basis. Stores select apps that best fit their customers’ needs and offer those apps placement via Xchange.
New stores also use Xchange to reach out to developers on a CPO (cost per outreach) campaigns.
Any app posted in Xchange and downloaded by the end user from an accepted-offer campaign, Xchange will take a commission, included in the CPI cost. For PPI campaigns, payments shown will be net of any commissions and fees to be paid to appbackr.
appbackr’s smartApps algorithm enables the discovery of the most promising new apps and sleeper apps at the tipping point of success with predictive analytics. smartApps has insight into what does and doesn’t convert to traffic and sales.
The algorithm identifies the apps that will be most successful for a specific market and distributes apps to the most appropriate retail channels and target audiences based on that data.
The appbackr appscore gives every Android app a score from 1.0-10.0. The score is based on data gather from the Google Play store:
The appscore uses a machine-learning model, evolving and adapting to changing conditions, exploiting hidden correlations in the large and complex mobile app market.
appscore is available for anyone to use at http://www.appbackr.com/xchange.
If you have uploaded a new version of your app to Google Play, your appscore will not change dramatically. Ratings and comments carry forward in Google Play to new versions of the same package.
We are happy to talk to you about your app and the appscore. Please email us at [email protected].
Consumers use the appscore on our site to search for quality apps by keyword or name. Stores that are signed on with Xchange use the appscore to filter all Android apps available and select apps to extend offers for affordables PPI campaigns.
Xchange must trace your app downloads back to the correct store. This ensure that you don’t pay for downloads from other marketing efforts.
SDKs that track the time, location, and carrier network for each install. Currently, Xchange works with M.A.T. and Chartboost SDKs.
Developers can assign appbackr access to their Google Merchant account.
Developers can track installs via their Analytics tab on their Xchange dashboard.
A store can give a variety of offers to developers for a particular app, including featured placement in the digital store, pre-load on devices, guaranteed minimum number of end-user downloads, and localization to specific regions. If a store does offer localization, the localized text strings are the property of the developer.
Stores will offer developers set prices on Price-per-Install (PPI) campaigns. The developer will either accept or reject the offer on the Xchange dashboard.
Once an offer is accepted, the developer will receive the PPI payment from appbackr.
Once a PPI offer from a store is accepted by the developer or a CPI offer from a developer is accepted by a store, the store is engaged to feature or promote the app for download by end users on the terms specified in the offer.
appbackr Xchange requires a balance of $100 in an account before a developer may create an offer to stores. With this credit, developer’s campaigns can begin immediately and run without interruption, ensuring the best results from the campaign budget.
Xchange will only deduct from the balance when a developer accepts a campaign offer and referred installs from the campaign are recorded.
appbackr is the first crowdfunding marketplace for mobile apps. Developers connect with 'backrs' to help fund, market, and distribute their apps.
Backrs make a profit as the app sells in retail app stores. appbackr allows anyone to take part in the new app economy...and make some $$$.
Some apps are finished and some are still being developed. Backing an app early gives you the opportunity to make a higher return.
Creating an app is hard work. Developers work tirelessly to build, perfect, and promote their apps in a very competitive market. appbackr gives them a place to find like-minded people to help support them in their journey.
We're glad you're here...welcome to appbackr!