Saturday, September 3, 2011

A New Way Of Investing, Appbackr is the App Marketplace for Investors

Tired of losing money on the Stock Exchange,  try a shot at Appbackr

Do you want to be an angel investor or venture capitalist in interesting applications for iPhone or  Android operation systems, try


Appbackr was launched in October 2010. appbackr is a wholesale marketplace for applications. App developers find investors (backrs, wholesale buyers) to fund applications and drive sales.
Of cours the return on the investor’s investment depends on whether or not the app sells well. This sounds risky for the investor, but if you screen on the success rate of the developer, social media impact of the developer (followers, etc.) and some other metrics you have a great chance of success that the app you are funding is not a one trick pony. Also the fact that you can promote yourself the app you are backing by several ways makes it a worthly investment.

appbackr is a wholesale marketplace designed to help developers and app investors (called backrs) by enabling them to connect and transact with one another. The investor (backr) purchases a quantity of apps at a wholesale price, and gets the difference when the app sells in the story. Basically you make money on the spread between the wholesale and retail price.

It’s essentially a three step process:
  1. Developer posts their app in the marketplace. The wholesale price is based upon the retail price and whether the product already exists today or is in development. The developer is not sellingproviding an ongoing right to sell copies of an app, only the right to promote the number of app instances purchased via the appbackr marketplace.
  2. A “backr” purchases instances of the app at a wholesale price, and then promotes them in whatever means they choose. At the moment of initial wholesale purchase the developer receives a cut of the purchase price immediately.
  3. As apps are sold, the backr earns the bulk of the profit, while the developer receives an additional payment per app as they sell. Backrs are credited with sales in one of two ways. If a developer chooses sequential payment, the first buyer of apps is credited with the first sales on the Apple or Android markets. When their quantity of apps is sold, the second buyer is credited with the next sales and so forth. The other payment method gives backrs a percentage of sales on the Apple and Android markets based upon the percentage of app instances that they purchased divided by the quantity purchased by all backrs.



Here’s the very clear video intro:


Developers who participate in appbackr must be a registered Apple and/or Android developer.
For the app developer, the marketplace provides immediate revenue to pay salaries and fund app improvements or additional apps. It also takes the “risk” of marketing activity out of the question for them. Because the people who make apps are generally NOT marketers, this risk reduction is a serious benefit.

Because a concept app may not have a set launch date if it's still in development, the potential return to the backr is much higher. Concept apps have a potential profit of 54% while backing a finished app that already is live and selling has a potential profit of 26%.

A nice way of diversification in an investment portfolio is this new alternative way of investing.

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