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Crowdfunding Applications Developers Marketplace

Published 10/05/2012 and rated Ratingstars4 4 out of 5 stars
by Dorothy Distefano
What can you use the app for?

appbackr is a crowdsourcing application for funding apps for iPhone and iPad. "Backrs" can purchase wholesale copies of the app from appbackr. Sales are tracked by appbackr and funds are collected and disbursed to the user and the backrs.

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What is the history and popularity of the app?

appbackr was founded in March 2010 by Trevor Cornwell, Sam Zappas, and Robert Clegg. Their idea was to provide a wholesale marketplace for iPhone and iPad apps where developers can access immediate payment and distribution channels. Profits are made via iTunes sales. While unique visitors to the site spiked to 33,000 in October of 2010, they are on a steady downward trend and holding below 1,000 at the time of review.

What are the differences to other apps?

appbackr is crowdfunding for mobile app developers. By connecting developers with "backrs", the developer obtains funds to help market and distribute their apps. Backrs and developers both make money from the partnership. Seeking funds in the early stages of app development allows opportunities for higher returns by taking some of the stress off of the financial aspect of the app building.

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How does the web app look and feel to use?

Once a user is registered, they may access their dashboard. No data is available until an app is backed. Both backrs and developers have the same registration and dashboard.

For Backrs: App developers post their apps in the appbackr marketplace for backrs to review. These apps may still be in development or they may already be offered for sale on a mobile app site. The developer can take their app and post it on appbacker, with details for potential backrs to review.

Posted applications generally include the category, stage of development, projected launch date, and markets that it will be offered in. Screenshots are often added for review as well. An App Store Description, detailed photos, and a statement by the developer of "why" a backr should invest in their app is also available. Developers also provide information about what they will use the invested money for. This generally includes what the reserve amount will cover in order to launch the app and the goal amount for additional ventures or additions. During development, developers can add updates to the status of the app, including video statements.

Potential backrs may view the statistics of active campaigns as well. The details include the amount purchased, number of backrs, days left in the listing, the progress of the funding, the potential return on an investment in the application, and a listing of the other backrs of the app. There is a short bio of the developer available as well as links to their social media accounts and the ability to send messages/questions.

To back an app, a backr views the above information and chooses to invest. The next page indicates the minimum purchase amount, how many copies this includes, the purchase price, and the profit. NOTE: Backrs are paid sequentially, so if the backr is the 36th backr, they will be paid after the first 35 backrs have been paid from app sales. Backrs may use PayPal or credit card for payment.

For Developers: To post an app, the user must enter the App title, marketplace (Apple iTunes, Android Marketplace, or HTML5), a description of the app, what the money will be used for, why the app should be backed, tags for the app, app category, whether the page should be password protected (available only to backrs the developer provides access to), length of time to run the campaign, development stage (concept or already available), expected release date, app website if applicable, company name, retail price for the app, the option to give users with higher Klout scores a higher profit, reserve goal, total copies available, minimum copies per backr, maximum copies per backr, app icon, screenshots, and acceptance of the agreement. Note that the agreement should be read thoroughly as it includes the amount due from buyers per copy purchased.

There is a link to a chart within the FAQ section outlining the detailed distribution economics. This is where to view the statistics. For example, an app that retails for $0.99 will have a wholesale price for backrs of $0.45, a developer share of $0.35, and an appbackr commission of $0.10. These numbers are less for concept applications.

To clarify: The developer sells the app in appbackr. The backrs purchase bulk copies of the app for profit and the developer receives immediate payment, minus the appbackr commission. Once the app sells in the retail store, appbackr takes another commission, and distributes payments as stated in their terms to the developer and backr.

How does the registration process work?

Users may sign up for an account by connecting with Facebook, signing up with BrowserID, or creating an appbackr account with first and last name, username, email address, and password.

What does it cost to use the application?

It is free to use appbackr. Payment is in the form of commissions taken twice during the process: Once when a backr invests and once when an app sells.

Who would you recommend the application to?

App developers in need of financial backing can turn to appbackr for crowdfunding of their project. It works for both apps that are already in development and those that are in the concept stage. Users - both developers and backrs - should review the fund disbursement thoroughly before using the application so that they understand the system.

  • Immediate funding for developers
  • Access to new distribution channels for developers
  • Backers help promote apps
  • Backers generally profit 25-50% per app sold
  • Crowdfunding makes reaching monetary goals easier for developers

Appbackr video

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Appbackr contact details

Telephone: 650-260-3890
Postal address:
200 Hamilton Avenue
Palo Alto CA 94301

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FREE - Permanently free version




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