Funding App Development With Wholesale Sales

On March 3, 2010

I love App Store marketplace hacks. Here’s a new one:

appbackr provides app developers with cash up front to develop their apps.

The cash comes from wholesale buyers who pay a discounted rate for the app before it’s built and then recoup the full amount when the units they purchased are sold in the App Store.

The wholesale buyers are arranged in a queue. The first wholesale buyer’s units are covered by the first sales in the App Store. The latter ones a fulfilled in order.

The developer gives the full amount of the sales covered by the wholesale units to the wholesale purchasers. After the units in wholesale queue are completely sold out the relationship with the wholesale buyers ends and the app developer gets the full amount of all future sales.

appbackr also offers wholesale purchases for finished apps. Here the scenario is that you’ve finished an app — it’s in the store — and you want a block of cash up-front. You sell wholesale priced apps to a buyer who then earns back the full amount as they sell in the store.

Wholesale buyers make $0.20/unit for concept stage apps or $0.12/unit.

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