At Plixl, we launched our first game, Mosaic Medley solely on iPads so we could get players into the game as quickly as possible. Now that we have a publishing partnership I wanted to quickly evaluate the benefits of porting to the iPhone as well. Using available data, here is how I came to a conclusion:
FYI – the numbers below are are all fictional.
- If we build the iPhone version, our publisher will increase our campaign to send an extra 1000 users per day.
- Life Time Value (LTV) is $1 per user.
- Apple takes a 30% cut. (OK, this number is real).
- Profit sharing with the publisher is 50/50.
Therefore we can calculate an estimated increase in revenue:
1000 (extra users) * $1 (LTV) *.7 (Apple’s cut) *.5 (publisher’s cut) =
$350 per day of active promotion
This is assuming the LTV of the users sent from our publisher have the same LTV as our existing users (it may be more, less or the same). Another unknown is how long the promotions would last or if there will be major changes in the market sometime soon.
However, adding the iPhone version to the app store should increase organic users by a small percentage and lastly, we’ll be able to monetize the extra iPhone users with Vungle, a video ad service.
From this quick and dirty estimate, we were able to come to a conclusion about investing our time into building the iPhone version or not. Based on our real data and our time constraints – we decided to move forward. Expect a release sometime in the next few weeks!