Monday, 3 February 2014

Why developing by yourself is less fun but more profitable.

I mostly do all of the work myself when it comes to making apps. The main reason for this is that I personally love to save money. Even contracting out the simplest features can get real costly. Whenever I do outsource I still do most of the work and only outsource a very small amount of work.

This is the way I like to release apps and make money but most people don't do it this way. They make sure they work in a team and get venture capital. Im sure there are tons of studies that say teams are more successful than individuals. At the same time there probably are not studies that show the efficiency of teams versus individuals. If there were, Im sure you would see that individuals can be more efficient.

If you haven't checked out Derek's Sivers' blog at sivers.org, I highly suggest you do. Derek Sivers was a musician/entrepreneur who started CD Baby. His views are incredibly insightful. When Derek was a musician he made his money by diversifying his performances. Here is his pricing chart for his music services.
  • 1000 for the 5-piece funk band
  • 600 for a duet performance
  • 450 for a solo performance 
Notice that he gets paid more for his solo performances. For 3 solo performances he would have to do almost 7 band performances. Here is the chart if he did one performance of each per week in 1 month or 4 weeks.
  • 800 for the band
  • 1200 for the duet
  • 1800 for the solo performance
Clearly the solo performance was the most profitable. There is another element that needs to be taken into consideration. The solo performance would be easier to put together and way less expensive. All he would have to do is write some songs with his acoustic guitar and sing. The band experience is much more complex. Even the duet adds in another level of complexity that makes the performance much harder. 

Which one is the most fun? Working with people you like to produce something is always way more fun. At the same time it is worse individually. The band makes the most money in total but as you can see for far less work you can be more profitable

When you decided to make apps you have to decide what you want to do. Do you want to go it by yourself and make more money for less work or do you want to have fun in a bigger team? For me I choose more profitability. 

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