Amazon Underground – A New Way To Make Money From Apps

Mobile App Marketing

Andrew & Chris discuss Amazon Underground. The brand new service that gives developers a new way to make money from apps.

We’re yet to see a monetization method like this on any platform so it was a really interesting discussion.

If you haven’t read the announcement from Amazon, you can find out more about it here: http://arstechnica.com/gaming/2015/08/amazons-new-games-and-apps-store-free-for-users-12%C2%A2-an-hour-for-devs/

And here is the official developer page for Amazon Underground.

Key discussion points:

  • How it works:
    • Everything free, no ads, no paid apps, all IAP’s made free!
    • This means the developer’s only revenue comes from Amazon Underground.
    • Amazon Underground pays per minute of use, per user. The only thing that matters is time-in-app.
    • Revenue is $0.01 per 5 minutes of use.
  • Will it work for all apps?
  • Which apps will benefit the most?
  • We also made an attempt to calculate how much revenue you could generate with Amazon Underground. Here are the basic calculations we did. Session length & average number of sessions are based on this article.
    • Games:
      • Revenue with 10000 Monthly Active Users (MAU’s): $1290 / mo
      • Revenue with 20000 MAU’s: $2580
      • Revenue with 50000 MAU’s: $6450
      • Average session length: 6.8 minutes
      • Average number of sessions per month: 9.5
      • Revenue: $0.05 per 5 minutes of use
    • Entertainment:
      • Revenue with 10000 MAU’s: $1555.20
      • Revenue with 20000 MAU’s: $3110.40
      • Revenue with 50000 MAU’s: $7775
      • Average session length: 8.1 minutes
      • Average number of sessions per month: 9.6
      • Revenue: $0.05 per 5 minutes of use

 

Tune in to this episode now in iTunes or Stitcher.

Want to learn more about mobile app monetization? Check out these other great episodes of the App Business Podcast:

Mobile App Monetization Methods

User Monetization Report

You can also check out this article for a list of other methods of making money with free apps.

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