Speaker 1: Coming up, want to know how to do market research for your app idea? Well, I'm going to save you a ton of time and a ton of money by showing you a simple process that you can use to validate your app idea before you even build it to ensure that there's a big enough market for it. Stay tuned. What is UpAppNation? It is Steve P. Young, founder of appmasters.com. And in this video, I want to show you a simple process that you can use to validate your app idea and kind of see what your competitors or those in the space are actually making, how much money they're actually making in the app business. And it's one of these key things that you should be doing when you first have your initial app idea. And if you have no idea in mind on what type of app to build, well, this simple process will show you what types of apps are actually making it or making money in the app space. So let's get into the computer. So the first site I'm going to show you is App Annie. Now, all this is all free, all the free tools. Now, App Annie, here's what we're going to do. I'm already logged in and I'm going to see an overview, but we're going to go here into the top charts. I want to click this. Okay. And now here you can see the overall apps, all the top apps that are making money. Now, this is the part that I'm going to pay attention to this top grossing. Now, it doesn't take into account this top grossing ad revenue, right? So you can see certain apps like these, Happy Glass, Hello Stars, these games that are in the top charts, but not in the top grossing. That's because App Annie and Apple, they won't report the top earners from ad revenue because they don't have access to this data. So this is primarily through in-app purchases, subscriptions, and the like. And so that's what you're going to see as a top grossing, right? But this will also give you a sense of what types of apps are actually making money. So you see a lot Netflix, Fortnite, obviously Pandora, music, dating, entertainment, some Candy Crush games. So these are a lot going to be these, the money that they're making are going to be dependent on in-app purchases. And that's what Apple and App Annie are reporting. Now I know what you're saying. Well, it's hard to really predict, you know, how much money the rest of the apps are making and how much ad revenue, but if you're not making a game, well, this will give you a general sense of kind of categories you should be creating. Okay. So let's get into more, a little bit more details right now. Now what you can do is actually go into categories. So now that you're studying this, you're seeing, okay, there's some games here. Title. I don't know what this is. Let's click into this. Let's see what this app is all about. Title. It says play and discover songs and videos. Okay. So a lot of music stuff is here. It looks like a lot of music. There's some games, social networks, mule. All right. There's a lot of different games and types of apps here. So now you're like, Hey, well, I have this idea for a, I don't know, celebrity changer, voice changes. Look at this. Right? So now you can see, wow. Celebrity voice changer. Hmm. Maybe I could do something off this realm. Right? So now what we're going to do is now you figured an app. Like you found an app. That's kind of cool. We're going to go into center tower. Now, again, you can do this for all the free stuff out there, and we're going to look for this keyword. So celebrity voice changer. Now I'm going to assume that's the ideal keyword because, you know, they have it in their app name. So pretty decent traffic, 6.5, right? Anything above, I would say a five is pretty decent traffic. Now you see a lot of different apps out there of the top three or let's say five, and I'm going to go off of reviews, even though they can be gamed, I'm going to go off the reviews and see how well they're doing. Right? So I'm going to go in and click this. I'm going to open a new tab for this. And then within sensor tower, they could tell you the revenue. So this is July, 2018. As of this recording, they, they made about $2 million and this is pretty accurate. Give or take a few percentage points, like anywhere from 20 to 30%. What I've seen with my apps in there within sensor tower, these are pretty accurate, this is pretty accurate data. So it's $2 million. Like, well, that's pretty good for a top dog. Let's see what the second guy is doing. 6,000. So real big drop off. See, we see 20,000 in July versus 1 million and $2 million, and they're not doing any advertising, but there's probably reliant on a lot of ASO traffic to get them the downloads. So that's probably how they're doing it. These guys obviously are, you can see here within sensor tower, these are advertising on Instagram. So you can click this video and you can even watch. You can see what they're doing on Instagram, those type of videos. So let's see what the third one says. Now this one doesn't have that many views. I'm going to click on this one instead. Just to see one 48, cause they have a little bit more reviews and the rankings a little bit higher as well. So they're doing under 5,000. They're not doing that well either. It looks like it's the big dog that's winning. Let's click on these guys. Cause they've got 107,000. So voice changer plus I'm going to click on this. So these guys did 90,000. So now I would start thinking about, okay, well, there, it seems like there's a big enough room in the marketplace for an app like this. Right. And $2 million, a lot of money. They're probably spending a lot of money too, to drive that. But I would download this app and then see how they're monetizing. What are they doing? Are they, you know, do they have a pop-up screen that says, Hey, you want to sign up? Generally, that's what I found. When I see these type of revenue numbers is they're, they're pretty aggressive with their subscription. So it's usually subscription and they're usually pretty aggressive, but here's where you can see unlimited usage, unlimited usage. So that's not very much telling of what type of in-app purchases there are, but it, I can assume because of the money they're making, it's probably a subscription based service. Let's see if they have it in the description anywhere. No. Okay. Nope. It is. So subscriptions are managed. So here it is. So it's, it is a subscription based business and that's how they're able to generate a lot of money. So that's one way you can look at the top charts. I'm gonna go back to app any real quick, and then I'm going to go into different categories as well. So let's say health and fitness. You know, it's a big category that a lot of people want to be in. And let's say calm. Wow. Okay. Calm. Number one. So what with Kayla headspace, all these have really, really high grossing numbers, and what we can then see is figure out, okay, what types of categories are working? So now you can see let's it's all like weight loss meditation. So there's a lot of meditation apps that are doing really well. And then you can start categorizing, Hey, maybe I can create a meditation type of app as well. So now let's just scroll down a little bit and let's see from a meditation perspective, let's, let's see how the apps are doing here. So I'm gonna put in meditation. And then you can start clicking through. So is there volume? Is there room for this? Right? Can I, can I figure out a way to sort of sneak in and start making anywhere from 10 to $20,000? This is what I'm trying to figure out now. Celebrity voice changer. One person's making $2 million that tells me that, Hey, there's a real market for this, that I could possibly create an app sort of similar to it and then not necessarily clone it, but create an app very similar to it, and then maybe get it out in the app store, run some advertising on it and start making money. Because, you know, if I can grab, let's say 10% or 20%, I'm actually doing pretty well from these guys. We're in meditation right now. I'm going to click through a few of them just to see how much they've been making. So we've got simple habit at 300,000. We've got headspace at 2 million. You can see they're running ads on YouTube. So you can see where they're running ads on and types of ads. We have calm making 3 million. So by far the biggest, that tells you, you know, like there are people making a lots and lots of money. So you have two apps already over the 2 million bar. And then what I'm going to do is just scroll a little bit more. Cause I know 10% happier was one of the other meditation apps. I was higher on the list from the top grossing like right here. So I'm gonna click on that one, even though they're not number, they're not that high for meditation. So I'm gonna click on that one as well. They're making 200 K. That's not bad. 300 K. So let's see what the worst one is doing. So now I'm going to scroll all the way down and I can try to find a meditation or I could just try to put sleepy Z. Let's try that. Right. So sleep Z I'm gonna come here and I want to see, okay, well, that's like the lowest one of the, this is number 99 of the top grossing. So let's see how well they're doing and type of app. Okay. Sleep cycle tracker. I've heard of this type of app before. So I've seen this before. Like this one is the most popular one. I'm gonna click on this just to see how well they're doing. They're doing 500 K a month. And let's see what sleepy sleep Z is doing as a 99. So they're doing a little bit under 5,000, which isn't, you know, a lot. So it would, that might be one that I might stay out of, but you know, you get the sense of where we're headed with this. You can start to really analyze what other apps are doing before you start even building yours. So if you have an app idea, you're like, Hey, these are the type of keywords that I think would fit perfectly for my app. One, see what kind of search traffic there is. And secondly, the top five or six apps look at the data on sensor tower to see how much money they're actually making. And if they're not making that much, maybe there's not a big enough market for it. But if the top players are making hundreds of thousand, if not millions of dollars per month, then there's definitely room for you. So question for you guys, let me know what you thought about the video, how you're doing market research, what kind of ideas that you have, and let me know in the comments below how you're doing your market research. Are you just looking at the app store? Are you looking at different tools? If you are using the tools, please let me know what they are as well. And if you've got a question for me, make sure you leave it in the comments. I read all the comments. I'm going to start creating more videos for you based on the comments you leave and what you want to see in these videos. So next time, make sure you hit like, make sure you subscribe and do all that fancy dancy YouTube stuff. And I'll see you on the next video. Click here. If you want to check out our pre-launch marketing strategies playlist, and also click here down at the bottom, if you want to learn more about the metrics that you need to focus on during your soft launch.