Frequently Asked Questions
Who is appbackr?
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 316 High Street in Palo Alto, California. To connect
with us, send us an email at support@appbackr.com.
What is appbackr?
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.
What are the economics for developers and backrs?
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.
Diagram of economics in appbackr process
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.
What is a concept app?
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.
How is the wholesale price calculated for an application?
We calculate the wholesale prices of apps based on a two factors: the retail price and the app stage.
A concept app may not have a set launch date if it's still in development.
Because financing a concept app may not return a profit for several months
or longer, backing has a potential profit of 54%.
A finished app is available for download in an app store now.
Backrs profit with finished apps sooner than concept apps.
Backing a finished app has a potential profit of 26%.
DISTRIBUTION AGREEMENT CHART
How is the wholesale price for in-app purchases calculated?
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.
How does appbackr count app sales?
For concept apps, appbackr counts sales as soon as the app is available in
a retail app store. For finished apps, appbackr counts sales beginning the
day after a backr purchases copies on appbackr (if the reserve goal has been met.)
Where can I find additional support?
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 support@appbackr.com or click our chat button and one of our
friendly staff members will assist you.
What are the economics for backrs?
Developers can post concept apps or finished apps. A backr makes a profit
of 54% on concept apps and 26% on finished apps.
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.
Is this equity?
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.
How do I get paid?
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.
We previously offered the simultaneous distribution to the concept apps which were submitted to appbackr before October 28th. Under the simultaneous distribution, backrs own copies of retail app sales based on a percentage of the number of copies they purchased, divided by the number of total copies sold on appbackr. Appbackr starts counting retail app sales as soon as the app campaign ends 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 currently no longer offer the simultaneous distribution option, and all apps, whether "Finished" or "Concept" will be distributed sequentially.
When do backrs get paid?
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.)
What are the economics for a developer?
A developer can sell an app that is still in concept stage or already in a retail app store.
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.
What is the developer giving up and receiving in return?
In exchange for receiving immediate funds from backrs and additional services
from appbackr to help promote an app, 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.
Are there any additional fees?
There are no additional fees for developers. Beta users will never
pay a listing fee and appbackr covers all PayPal transaction fees.
How are different versions of an iOS app backed on appbackr?
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.
Can developers change the app retail price after it's been backed on appbackr?
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.
