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Quick VentureBeat follow-up: opportunities in a down-market

Quick VentureBeat follow-up: opportunities in a down-market

Apr 9, 2020 | Best Practices, News | 1 comment

We’ve received great feedback from our VentureBeat article this week and to share we’ve compiled the three most popular questions asked by customers and readers. Video transcript below.

As originally published in VentureBeat. Click above for link to article

Video Transcript

Hi folks, trying something new today. I got a lot of great feedback from the VentureBeat article published over the weekend and rather than take the time to do a blog post I thought I’d do a short form video to increase the speed in which I could address the questions.

I have a rule if I get the same question three times I write it down for posterity so I’ll try answering the most commonly asked questions from the article in video form to give you feedback.

First all related opportunity: the most common questions I got were related to opportunity the first one being when should we release a new app if this is going be a great time in a down economy release or not a new app when you release the new app the answer is whenever you’re going to move an direction the faster you can do it the better. We think both release dates and products are going to be pushed both from the lack of funding and the fact that people aren’t used to working from home during this quarantine, plus people are going to be spending a lot less R&D on developing new apps so the faster you can get to market the more time you’ll have in an un-competitive space. We’re taking this as a time to refine our goals as a company double down on our future product development and shed things that really aren’t necessary in order to double down on the speed and hopefully take advantage of the time when other people aren’t pouring resources in R&D.

The second question is acquiring users: how to go about acquiring users in a down economy and the first tip is the longer of an LTV you can you can measure — the longer you actually can retain a user the better you’re going to do in buying a user in the down economy and then realizing their gains long-term. If you have a high churn rate of your app, be careful, buying in a short term at deficit pricing will also hurt you on the monetization side too because you’ll take a hit on your monetization side with subscriptions and in-app purchases or through ads; you have to factor that in the longer LTV (retention) you have on your app the better you will fare.

And the final is what apps should I actually buy it’s not going to be easy finding apps at a really good deal, there’s not a lot of really good deals left out there. There’s a lot of really talented people and companies that are going around buying up and creating portfolios but I think it’ll mostly depend on the cash flow of the app developer, the publishers who are spending a lot to acquire users, spending lots of maintain growth, are going to run out of funding. They’re going to be looking for opportunities to partner, or to be acquired, or getting cash to continue that growth. The apps that have a business model where it’s cash coming in without a lot of money going out aren’t going to be in such a hurry in this period where they actually need to get money coming through the door

And the final question was next what’s happening in the market who were the networks that were hit which I’ll address in the posts in the coming weeks, so check back soon. Thanks.