Posts Tagged ‘business idea’

Business Idea: Fundraising through junk applications

June 27th, 2009

It’s a discomforting fact that iPhone applications like iFart which are completely useless apps that do nothing more than help a few teenagers procrastinate are making more money than more thoughtful applications that actually solve real problems that people have, perhaps because everyone can have a bit of fun with a gag, while applications that solve specific problems like finding the best price on petrol have a smaller market. In the long term, this is toxic for development because the iPhone and any other platform with APIs for application development will be saturated with junk from people trying to make a quick buck, while useful applications are struggling to survive.

Furthermore, gag applications are easy to develop, while useful applications take more time and resources to develop, so a failed gag application incurs very little cost on a developer while a failed attempt at an otherwise good idea for a useful application can put a small business into bankruptcy.

What can we do to overcome this sad reality and actually build more applications that are useful and applications that you can be proud of? Why not raise money through gag applications and build the useful app with the revenue? That way, you’re channeling money from something that is unproductive to something much more productive. Sure you’re still contributing to the pile of junk applications out there, but at least you can feel good about it once you start using the money to develop something useful. It’s a practical compromise.

Gag apps can also be used for viral marketing of more useful apps. If you’re trying to sell a map application that locates your favourite restaurants, why not create some simple applications like “throw food to your friend” (like the super poke application in facebook, oh what a waste of time that was!), give that away for free, and place ads to your map application.

Other than the pride in creating something useful, why else would someone want to create useful apps while the risk is higher? It’s a long term investment. If something is useful, it’s going to be used many times over a long period of time, users will tell their friends about it, and it will help you establish a long term brand. Branding seems superficial, but it’s important because people are more likely to buy something if they have heard of it before. If there are users with problems and need a solution, they will pay for it, even if there is fewer people wanting it, you could be solving something for a niche market and have a monopoly for a while.

This doesn’t only apply to the iPhone(in fact, the iPhone is much more gag free than other app platorms like facebook because applications must be approved by apple before it appears in the app store), it applies to facebook, myspace, android, anything with an app API. If you aren’t prepared to limit the types of apps like apple is doing, getting developers to think about using this model is a good way to limit the amount of junk applications that can pop up …or at least it channels some of the wasted time and money spent making and using these apps into more useful things.

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Business idea: Bulk Amazon.com orders in Australia

June 14th, 2009

Amazon.com is a great store, it sells just about anything at very cheap prices. Too bad we don’t have a local one in Australia because I think there would be a lot of demand for one, especially since there’s nothing like it online here. (There are a few that tries to do what amazon does but are not very successful because it doesn’t have the variety of products and large user review base that Amazon.com has, this is essential for it to work).

The Australian dollar is back on the rise against the U.S. dollar so it’s more and more worth while to buy things like books and CDs from the U.S. The only thing that is holding people back is the shipping cost. I personally know people who wait until a group of friends also want to make an order and order together to save on shipping.

What if there was a place that connects Australian Amazon.com customers together to allow them to arrange group orders to save on shipping? This could be a simple forum where people can meet and discuss orders together, or a sophisticated web2.0 website with social networking built in and matches similar orders autonomously, and anywhere in between. Or, what if you provided a service to make the orders for customers? This approach would make you the middleman. This allows you to charge a commission in exchange for providing customers a piece of mind and saving them the hassle of deciding on a common shipping address and finding the right person to make the order.

Risks – things that would prevent the business from succeeding:
* lack of audience so not enough people know about the site to make it useful, this site would need an initial group of eager customers.
* Amazon.com rethinking their decision not to have an Australian store and actually building one here would render your service redundant.
* copycat websites possibly already with a large user base taking your market share.

Any entrepreneur who wishes to start this business must be willing to take on these risks.

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