Tuesday, May 31, 2011

Gold Diggers and the Emerging Apps Market

Recently, I finished reading a history about the ‘49ers’.  No, not those 49ers, the original American settlers and immigrants that came from all over the world to California in search of gold in the state’s riverbeds and mountains.  The article cleared up a misconception I had held learning about these early settlers.  The first image that had always popped into my head was the old bearded man with the pickaxe and dirty clothes.  Yet, it stands to reason that, if these guys were the ones making all the money from the gold rush, shouldn’t they look a little less…impoverished?  The story went on to say that it wasn’t the miners who prospered the most during that time, but rather the merchants.

I was then introduced to Samuel Brannan. An avid entrepreneur, he was a shopkeeper, newspaper publisher, and described as a ‘tireless self promoter’.  Brannan’s economy was people, his risks were calculated, and his technology was his mind. He knew that the gold rush of 1849 was imminent based on a small group from the year prior (also known as the ‘48ers’).  Brannan made his move.  He bought almost all the shovels in San Francisco and opened up a chain of supply stores in surrounding towns.  He went on to be the first millionaire of the gold rush and forever etched in history.

The documentary had me thinking what Samuel would do in this 21st century economy. As a developer, it seems that there are many parallels between the gold rush and the world of apps, where millions are made, and much is at stake. Many companies go into apps thinking they have to be.  Many of those miners in the mid 1800’s thought they needed to be on the search for precious metals, but their decisions were made in haste and desperation, and the results for many of them ended up in financial ruin.

In your decision to go into the app market, what considerations will you need to make? What is your ROI? Can you cover your cost with ads if you offer your app for free? There are a handful of critically important questions that need to be nailed down before you consider putting an app together. It can sometimes feel overwhelming. Where does a company even begin?

No matter what size of the business or the budget, to make the leap in the app market, you’re first goal is to answer why.  Why or why not? Why bother?  Why will your app be better than say, a mobile site? Why will your app give the consumer a better grasp on what it is you do/offer? I would also add that there are a lot of independent businesses doing great without an app in the marketplace.  Although Fierce Creative Agency would love everyone to come through the doors needing an app, to protect our clients, we strongly urge them to make sure it makes sense.  Just because you see others in the mountains and riverbeds, doesn’t always mean they’re bringing up gold.  You may even be surprised to find out all the other options available.  On the other hand, some companies are sitting on undiscovered gold by not having an app in the marketplace. At Fierce Creative Agency, our business is helping yours grow.  We offer free app consultations to help you become a merchant, not a miner.

-Jason Barrett
Senior Artist and Programmer
Fierce Creative Agency
615-523-9937
jasonb@fiercecreativeagency.com