No one is going to retire by selling apps just to the Australian App
store, or any non-US store. Graham of OzWeather did it for love not
money :-)

I see 3 models for making good money from iPhone applications, in
order.

- Paid apps for worldwide or US distribution - you have to have a
'hit' to make money.
- Brand sponsored apps - you need a partner like Pepsi, Target, Audi
etc.
- Advertising supported apps - you need eyeballs, lots of them, to
make $500 USD per day from an app with average mobile CPC rate of
$0.25, and a click through rate of 1% you need 200,000 ad impressions
per day - assuming a click through results in a purchase.  Very few
iphone apps are that popular.

I do agree that its too hit based at the moment, its very hard to
bring a price back up when your competition is at 99c.  One of the big
app developers did some testing and observed a 60% drop in sales each
time they moved up a pricing tier. 99c -> 1.99c etc.

Keith

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