Friday, February 27th, 2009
iPhone Apps and Passive Income
I recently read several articles about Ethan Nicolas, a man who created an iPhone App (iShoot) with hopes of making enough money to pay some medical bills and save his family’s home. A few months later, his iPhone App is generating so much passive income that he was able to quit his job and can now dedicate himself fultime to creating more games - and more passive income.
I haven’t been able to find any information about about how much passive income his iPhone App is currently generating on an average day, but after sitting in obscurity for a few months, Ethan released a free version of his game - which generated enough buzz to shoot his iPhone App to #1 Paid App in the iPhone App Store. On the day that his iPhone App hit #1 - he sold nearly 17,000 units, generating $37,000 - Ethan quit his office job.
Obviously, it’s a good day when your iPhone App is sitting at the #1 spot, but even if his sales dwindle to 100 units per day, he’ll still generate $209 of passive income - that’s more money than many people make doing physical labor for 8 hours.
iPhone Apps and Passive Income
The iPhone App is a great example of a Passive Income Stream. You put your work in at the beginning, then you start seling your iPhone App and watch the money start to trickle in. To improve sales, you can put in some more time doing some marketing and generating some buzz if you want. If you’re really lucky, you might turn out like Ethan Nicolas and have a best seller - but even if your game generated $100 of passive income for you every month (you would need to sell 71 units/month for a $1.99 App), wouldn’t that be great?
For more information about Passive Income, check out my previous post “What Is Passive Income?“
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