Getting to know appbackr
appbackr is a small startup 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.
We are proud to have been recognized as an innovator from the start, receiving the distinguished PayPalX Developer's Challenge Award, SVASE/Cambridge West Seed Fund Award and most recently named to the coveted AlwaysOn Global 250 List. You can read all of appbackr's press in our Press Room.
We are located in Silicon Valley, the world's epicenter of technological progress. Headquartered at 514 Bryant Street, Suite 119, in Palo Alto, California, our two-room space is a tight fit for more than our tireless crew! If you'd like to chat with us personally, we recommend sending us an email at support@appbackr.com.
You can read more about our founders and team on our About Us page .
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appbackr is a wholesale digital marketplace- the first of its kind for iTunes applications. We enable app developers to find wholesale buyers who can help fund applications and even drive sales. On our marketplace, a developer receives payment from a buyer for a designated number of queued app units, conveniently done via PayPal. When the purchased app units sell in the iTunes Store, the developer receives an additional payment while the buyer collects his/her money back and a profit. Our economics diagram helps to explain this process.
* Diagram of appbackr process
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An app in the concept stage is yet to be approved by Apple, Inc. A developer may be in the process of creating the app or it could be awaiting approval from Apple, Inc. A finished stage app has already been approved by Apple, Inc., and is featured in the iTunes Store.
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We calculate the wholesale prices of apps based on a few simple factors. An application's status as concept or finished determines both the buyer's purchase amount and the ultimate proceeds. Concept stage applications may be more risky for a buyer but units are less costly to purchase and result in greater net proceeds for wholesalers. A finished app may have greater certainty but it is purchased at a higher price, resulting in smaller net profit for the buyer (and greater profit for the developer).
The retail price of an app is also calculated into the wholesale price. $0.99 iPhone apps result in smaller wholesale cost and proceeds than a $4.99 iPad app. Check our economics below to compare these important details DISTRIBUTION AGREEMENT CHART.
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Our economics are shown in the diagram below. This calculation is based on a $0.99 iTunes app in concept stage. Costs and proceeds vary based on several factors.
* Diagram of economics in appbackr process
Step 1: Queued units of app purchased by Buyer
Step 2 & 3: Queued units of app sold in iTunes Store and funds distributed by appbackr
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 and buyers in addition to the Apple, Inc. and appbackr charges associated with each transaction.
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In order to list an application on appbackr, the developer (seller) must be registered with iTunes. We verify this information before an app can be sold in our marketplace. In addition, we use a paid verification service that checks further details of the developer. Like any market, ultimately reputation will play a key role in determining which buyer and seller may be a good fit for one another. Creating a network of individuals already familiar to you is strongly encouraged as you begin using our service.
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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. Our Community Forum is a valuable resource for help topics, insight and ideas. If you'd prefer, drop us a line at support@appbackr.com and one of our friendly staff members will assist you personally. Check back soon when we will offer our members an exclusive support phone line.
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For Buyers (appbackrs)
Buyers purchase units in a queue as they are sold in the iTunes Store. Let's say the buyer purchases 10,000 units of an iPhone app and is the first buyer in the queue. When the first 10,000 units sell in the U.S. iTunes Store market, the buyer is paid the entire cost of his/her initial purchase in addition to all of the proceeds. At that point, the buyer will no longer receive additional proceeds from the sale of the application unless or until they purchase additional units from the developer.
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Remember, buyers purchase a queued number of an iPhone or iPad application which can only be sold at retail on the iTunes Store. You are purchasing the right to be paid for a specific unit when it is sold in the iTunes Store.
Buyers are purchasing U.S. queued numbers to simplify the process. Apple, Inc. treats each market (seven worldwide) differently. Since Apple does not pay out until a threshold is met in each market, we wanted to avoid any possible situation where your unit sells but you do not receive your proceeds immediately. Specifying U.S. queue numbers only allows us to ensure everyone gets paid their due money on time.
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From a $0.99 retail app, a buyer profits $.19 for every unit in the concept stage (54% profit). In the finished stage the profit is $.12 (26%). From a $4.99 retail app, a buyer profits $0.96 for every unit sold in the concept stage and $0.60 in the finished stage.
Check our Economics section above for additional information.
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Buyers get paid when Apple, Inc. pays the developer after units have sold on the iTunes Store. To make it as efficient as possible, the proceeds arrive in an appbackr account linked to the seller's iTunes developer account. We then reconcile the iTunes account with the buyer's purchases and the bank record. Using PayPal, we distribute payment to the buyer within 5 business days of receipt (exception can arise if an error is found, in which case you will be notified within 24 hours).
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No. Plain and simple, you are a wholesale buyer in our marketplace. You make a profit when your queued app unit sells on the iTunes Store. Once all of your queued units have sold on iTunes, you will no longer receive additional profits unless you purchase additional units from the developer.
Our marketplace provides a means to help app developers receive immediate and partial funding of their app while creating a new ecosystem for buyers like you. You can drive sales of your purchased apps through unique and innovative features on our marketplace. Like all appbackr members, you have the opportunity to grow your reputation and expand your potential as a wholesale buyer in an emerging market. How you do that is ultimately up to you. You are a member of the community but not part of the appbackr team, so you reap no rewards if appbackr sells out to Google.
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Yes. Our marketplace accommodates all iTunes applications.
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You have purchased a number in the queue of a particular app, so you won't be paid until your queued units sell on the iTunes Store. Higher queue numbers may equate to longer wait times for payday. Higher queue numbers may also denote a popular or potentially popular app. As a wholesale buyer, it is up to you to decide if you want to add value through marketing an app and increasing its sales or if you'd simply like to help a developer reach their funding goal and potentially profit.
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You can either sell in the concept or finished stage (pre and post- Apple, Inc, approval). In the concept stage, a seller (developer) makes a total of $.35 for each $0.99 retail unit sold ($.25 received at purchase from wholesale buyer and additional $.10 when app units sell in the iTunes Store). In the finished stage, the seller receives $.45 total for each $0.99 unit sold ($.35 from wholesale purchase and additional $.10 at sale in the iTunes Store).
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Developers selling app units on the appbackr marketplace are charged a $25 monthly service fee. This is to cover basic banking expenses associated with receiving, reviewing and distributing funds to the appropriate parties involved. Please note that you are not charged to use our marketplace prior to placing app units for sale, nor are you assessed a fee once your app units have all been sold and final funds distributed.
Because we use PayPal for funds distribution and we assign members appbackr bank accounts, typical and costly fees incurred from the distribution of funds from Apple, Inc. to the developer's bank account are waived with the use of the appbackr marketplace.
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We've spent years listening to the conundrums of mobile app developers. Among the most common- how to receive iTunes app proceeds quickly and lessen the financial burden often accompanying development. Also included is how to earn back development costs in order to fund the next app idea. The answer was right before our eyes, most everywhere we looked. Marketplaces have been around for thousands of years, but appbackr is the first and only one exclusively made for the iPhone and iPad age!
In exchange for receiving immediate (partial) funds from a buyer and additional services on our marketplace to help promote your app, sellers are giving up a percentage of their final app proceeds. It's important to keep in mind that a developer is not selling permanent rights to the sale of his/her app, but only queued units- the number of which is entirely up to the developer (up to 40,000). Once those purchased units have all been sold on the iTunes Store and your buyer has received his/her proceeds for helping you, you revert to enjoying the normal 70/30 split (70% of iTunes app sales goes to developer while Apple takes 30%) and your appbackr fees cease when you no longer have actively selling apps on our marketplace.
Of course, you might decide that a particular buyer strengthened your app sales or our marketplace enabled you to quickly reach a goal and so you decide to sell additional units or a new app on appbackr. That's great with us because when you succeed, we succeed. If you have ideas for how we can better serve you, we're always listening in our Community Forum !
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As a developer, you choose when to sell units of your app on our marketplace, how many units you wish to sell and who to sell them to. To start, ensure that you are ready to sell your application on our marketplace as you begin incurring a $25 monthly selling fee upon listing an app for sale.
Next, decide how many units of your latest app you wish to sell and whether you want a minimum sales threshold. Some developers may want to sell as many units as possible (up to 40,000), whereas others may want to test the waters with a smaller figure first. A minimum amount requires a threshold to be met prior to any units being sold (buyer funds are put on hold until set number is reached). Remember, once all of the purchased units sell in the iTunes Store, your relationship with your buyer ends and you revert to the normal 70/30 split with Apple, Inc. (developers receives 70% proceeds; Apple, Inc. receives 30%).
Lastly, carefully consider who you want to sell your app units to. If you're new to us, we encourage you to seek out buyers you are already familiar with- perhaps a co-worker, business associate or a family member. We make it easy to send emails to your own contacts through our set-up process. Some buyers will provide you payment for queued units and little else. This may be just what you need, especially if you are new to our marketplace. Other buyers will craftily promote your application using our social media tools and other means, strengthening your app sales and ultimately increasing your proceeds.
Our Terms & Conditions are essential reading prior to selling or buying on appbackr and we always encourage you to ask questions and discover answers on our Community Forum .
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appbackr inc. in detail
appbackr provides a service to its customers in the means of a digital marketplace for iPhone and iPad applications. Just as brick and mortar warehouses offer a space for tangible goods, appbackr offers an online marketplace where sellers put units of their applications for sale to intermediary buyers. As no such iTunes app marketplace previously existed, we created a space to bring together buyers and sellers in a vital relationship that we believe will help to shape the future of this rapidly evolving industry.
In addition to providing our easy to use online marketplace to our members, we also offer our community many unique ways to engage with one another and ultimately with their retail consumer. As we continue to grow, we hope you'll take a moment to offer your feedback on our Community Forum or drop us a line at support@appbackr.com.
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© 2010 appbackr
