This is really sad to me because I aspire to run my own shop just like this one day, creating apps and software for ourselves and clients. I too see myself as a maker, not a business developer, so maybe this is a red flag to reevaluate.
Most of the apps that Agant has produced appear to be aggressively priced (seems most are around £9.99, the most recent at £24.49). Though, they do target a rather niche market. I'm very curious as to whether the apps did not sell well or simply did not cover the cost of operation. Whatever the case, now that Dave is the sole employee the revenue of the existing apps will not hurt.
Finally, I'm also wondering if Dave ended this adventure simply because he was not enjoying it, or if Agant was spiraling into debt. I can't really tell from this post. He does mention that making it in the App Store is difficult, but that some of the apps were created for clients (some being partners). I can't imagine that there wasn't enough good work out there for a talented team of proven developers+designers.
What's not totally clear to me, and I'm not sure if Dave would be willing to share (but worth a try!) is whether Agant was primarily financing itself through up-front development fees or through revenue share.
Because I know for a fact there are a number of agencies in the UK that have managed to build sustainable businesses off up front costs. I don't know of any (and I'd love to be proved wrong on this) that have done it through revenue share. I've definitely lost pitches to companies that proposed revenue shares though...
I can't imagine that there wasn't enough good work out there for a talented team of proven developers+designers.
I alluded to this in another post, but the problem now is more that the companies prepared to pay top dollar for apps tend to be those that aren't going to pick a small agency, even one with good creds. They're looking for big, established players that can service all of their digital needs in a single go.
The agency I work at would likely never take a revenue share. I wouldn't take one either, personally, unless the product was something I would be satisfied seeing no return on. Unless the client was someone with a proven track record, I think revenue share would be suicidal.
Its not the end of your dreams, just different. Mobile apps stores are the exact same marketplace and business trajectory as cdrom multimedia in the early/mid 90s. I'm sure they'll be another, probably unpredictable tech driven bubble in the future. The endless wheel of IT keeps on turning and something else will rotate up soon enough.
"I can't imagine that there wasn't enough good work out there"
Toward the end of a bubble the work goes away no matter how good you are. As far as I know he was pretty good. Which has pretty dire implications for the rest of the marketplace. The worlds best finish carpenter got fired in 2007. The worlds best multimedia cdrom designer got fired around 1996ish. The world best atari 2600 programmer got fired in 1983ish. Its the bubble that caused the problem, not the man.
Excellent points. I guess we'll have to see how this rides and if it is sustainable in the future. I love what I do currently and don't wish for change, but I'm sure my feelings and interests will evolve as technology and the world around us does.
Comments
This is really sad to me because I aspire to run my own shop just like this one day, creating apps and software for ourselves and clients. I too see myself as a maker, not a business developer, so maybe this is a red flag to reevaluate.
Most of the apps that Agant has produced appear to be aggressively priced (seems most are around £9.99, the most recent at £24.49). Though, they do target a rather niche market. I'm very curious as to whether the apps did not sell well or simply did not cover the cost of operation. Whatever the case, now that Dave is the sole employee the revenue of the existing apps will not hurt.
Finally, I'm also wondering if Dave ended this adventure simply because he was not enjoying it, or if Agant was spiraling into debt. I can't really tell from this post. He does mention that making it in the App Store is difficult, but that some of the apps were created for clients (some being partners). I can't imagine that there wasn't enough good work out there for a talented team of proven developers+designers.
What's not totally clear to me, and I'm not sure if Dave would be willing to share (but worth a try!) is whether Agant was primarily financing itself through up-front development fees or through revenue share.
Because I know for a fact there are a number of agencies in the UK that have managed to build sustainable businesses off up front costs. I don't know of any (and I'd love to be proved wrong on this) that have done it through revenue share. I've definitely lost pitches to companies that proposed revenue shares though...
I alluded to this in another post, but the problem now is more that the companies prepared to pay top dollar for apps tend to be those that aren't going to pick a small agency, even one with good creds. They're looking for big, established players that can service all of their digital needs in a single go.
The agency I work at would likely never take a revenue share. I wouldn't take one either, personally, unless the product was something I would be satisfied seeing no return on. Unless the client was someone with a proven track record, I think revenue share would be suicidal.
Its not the end of your dreams, just different. Mobile apps stores are the exact same marketplace and business trajectory as cdrom multimedia in the early/mid 90s. I'm sure they'll be another, probably unpredictable tech driven bubble in the future. The endless wheel of IT keeps on turning and something else will rotate up soon enough.
"I can't imagine that there wasn't enough good work out there"
Toward the end of a bubble the work goes away no matter how good you are. As far as I know he was pretty good. Which has pretty dire implications for the rest of the marketplace. The worlds best finish carpenter got fired in 2007. The worlds best multimedia cdrom designer got fired around 1996ish. The world best atari 2600 programmer got fired in 1983ish. Its the bubble that caused the problem, not the man.
Excellent points. I guess we'll have to see how this rides and if it is sustainable in the future. I love what I do currently and don't wish for change, but I'm sure my feelings and interests will evolve as technology and the world around us does.