I often get asked if Apps are better than starting an e-com business or starting a YouTube channel.
So today I decided to breakdown each one of these approaches and give you an idea on which one you should pick.
Let's compare each of the following approaches:
1.Starting an E-Commerce Business (Shopify, etc)
2.Starting a YouTube channel and vlogging
3.Building and Publishing Mobile Apps
Of course, we can compare each strategy based on so many other factors but I think these 3 are the most important when it comes to making a decision on which one to invest in.
There are 2 main resources needed to get started with any of the mentioned strategies, time and money. Let's breakdown the cost of each approach in more details.
E-Commerce Business (Shopify, etc)
We all have heard the buzz around starting an e-com business. Well, the truth is that things aren't as easy and great as e-com gurus claim.
Let's take a look at running an e-com store at 25% margin which is better than the industry standard.
With this model you need to constantly be at your computer and doing work including running Ads, fulfilling orders and answering customer emails and complains. Who wants that? Nobody!
Time to get to $10K per month: 6-12 months
Cost of services: $250 Per Month
Cost of Ads to Make $10K per month net: $20,000 Per Month
Cost of Goods: $10,000 Per Month
Required Time: +5 Hours per day (Running Ads, testing products, fulfilling orders, dealing with customers)
You can see that to generate $10K per month you need to have a working capital of $30,000! That's if you don't waste any money on testing products!
Let's take a look at the next hot topic… Vlogging
YouTube & Vlogging
The YouTube star's lifestyle is quite appealing and a lot of people dream to be one. But let's take a look at the reality and see how much effort and time is required to get there.
On the side note, I have a YouTube channel which I've been posting different tech and App related videos to for years. In total, I've posted over 200 videos so far and here are the results I've been getting since I posted my very first video:
The number of public videos: +200
The total number of views: 2,390,819 views
Subscribers: 27,375 Subscribers
Total revenue earned to date: $8,703.37
In comparison to the effort which I've put into my channel over the years, the revenue generated is not good at all. (I know some people make a ton from youtube but I want to be realistic here and compare apples to apples)
So here are some estimations to get to $10K per month with YouTube. (You need to get +3,000,000 views per month for your channel to generate $10K per month.)
Time to get to $10K per month: 24-72 months
Cost of gear: $3,000 (Laptop, camera, tripod, editing software)
Cost of an Interesting Lifestyle: $5,000 Per Month
Required Time: +8 Hours per day (filming, editing, replying to comments, collabs)
Mobile Apps (iOS, Android, PWA)
Now, it's time to talk about building Apps. Remember that this is something which I've picked to invest in and I also advise you to start with. The reason is that in comparison to other methods it has a lot more potential and can get you to the $10K mark way faster!
There are so many different ways to get to $10K per month in net revenue with Apps. Here are 2 of many different ways:
Method #1: Build yourself an App
You can publish your own App to the Google Play or App store without any technical skills these days. Wanna know how? Here's how I do it.
Here's how an App can generate you $10K per month:
Get 1,000 paid subscribers @ $10 per month to use your App!
1,000 X $10 Per Month = $10,000 In revenue
In addition, you can also receive advertising revenue or offer other premium services in the App.
Method #2: Build Apps for Local Business
There are many businesses out there who would love to pay you to build them an App so they can reach their customers and increase their sales.
You can build Apps for restaurants, cafes, etc. and easily charge them +$5,000 per App for doing so!
So to reach $10K per month you only need to get 2 clients per month!
2 Clients X $5,000 Per App = $10,000 Per Month
The best part is that I can show you a way which you can build the App for them in 2 days max! Exciting huh? 🙂
Now let's take a look at the cost breakdown for Apps:
Time to get to $10K per month: As little time as a week!
Cost of services: $0 to $30 per month
Cost of gear: You only need a laptop
Required Time: 2 Hours per day (Build new Apps, check your stats and revenue, improve and tweak existing Apps)
If what I just told you gets you excited about Apps and you want to learn more than you can check out the following case study:
Catch you later,