E-Commerce Vs. YouTube Vs. Apps
I often get asked if building an App is a better investment than starting an e-commerce business or even starting a YouTube channel.
So today I decided to break down each one of these approaches and give you an idea of which one you should pick.
Let’s compare the following approaches:
1.Starting an E-Commerce Business (Shopify, etc)
2.Starting a YouTube channel / Vlogging
3.Building and Publishing a Mobile App
Of course, we can compare each strategy based on so many factors but I think these 3 are the most important when it comes to making a decision on which one to invest in:
- Investment to get started
- Time to get results
- Market potential
Let’s break down the cost of each approach in more details.
E-Commerce Business (Shopify, etc)
We all have heard the buzz around starting an e-commerce business.
Well, the truth is that things aren’t as easy and great as e-com gurus claim.
Let’s take a look at running an e-com store at a 25% margin which is better than the industry average.
With this model you need to constantly be at your computer, doing all kind of work including running Ads, fulfilling orders and answering customer support emails and complaints.
Who wants that? Nobody!
Time to get to $10K per month: 6–12 months
Cost of services: $250 Per Month
Cost of Ads to Make $10K per month net: $20,000 Per Month
Cost of Goods: $10,000 Per Month
Required Time: +5 Hours per day (Running Ads, testing products, fulfilling orders, dealing with customers)
You can see that to generate $10K per month you need to have a working capital of $30,000!
That’s if you don’t waste any money on testing products!
Let’s take a look at the next hot topic… Vlogging
YouTube & Vlogging
The YouTube star’s lifestyle is quite appealing and a lot of people dream about it...
But let’s take a look behind the scenes and see the reality and how much effort and time is required to get there.
As a side note, I have a YouTube channel to which I’ve been posting different tech and App related videos for years.
In total, I’ve posted over 200 videos so far and here are the results I’ve been getting since I posted my very first video:
The number of public videos: +200
The total number of views: 2,390,819 views
Subscribers: 27,375 Subscribers
The total revenue earned to date: $8,703.37
In comparison to the effort which I’ve put into my channel over the years, the revenue generated is not good at all.
(I know some people make a ton from youtube but I want to be realistic here and compare apples to apples)
So here are some estimations to get to $10K per month with YouTube. (You would need to get 3,000,000+ views per month for your channel to generate $10K per month.)
Time to get to $10K per month: 24–72 months
Cost of gear: $3,000 (Laptop, camera, tripod, editing software)
Cost of an Interesting Lifestyle: $5,000 Per Month
Required Time: +8 Hours per day (filming, editing, replying to comments, collabs)
Mobile Apps (iOS, Android, PWA)
Now, it’s time to talk about building Apps.
Remember that this is something which I’ve picked to invest in and I also advise you to start with.
The reason is that in comparison to other methods, it has a lot more potential and can get you to the $10K mark way faster!
There are so many different ways to get to $10K per month in net revenue with Apps.
Here are 2 of the many different strategies which you can implement:
Method #1: Build Yourself an App
You can publish your own App to Google Play or App Store without any technical skills these days.
Wanna know how? Here’s how I do it.
Here’s how an App can generate you $10K per month:
Get 1,000 paid subscribers @ $10 per month to use your App!
1,000 X $10 Per Month = $10,000 In revenue
In addition, you can also receive advertising revenue or offer other premium services in the App.
Method #2: Build Apps for Local Business
There are many businesses out there who would love to pay you to build them an App so they can reach their customers and increase their sales.
You can build Apps for restaurants, cafes, etc. and easily charge them +$5,000 per App for doing so!
So to reach $10K per month, you only need to get 2 clients per month!
2 Clients X $5,000 Per App = $10,000 Per Month
The best part is that I can show you a way in which you can build the App for them in 2 days!
Exciting, right? 🙂
Now let’s take a look at the cost breakdown for Apps:
Time to get to $10K per month: As little time as a week!
Cost of services: $0 to $30 per month
Cost of gear: You only need a laptop
Required Time: 2 Hours per day (Build new Apps, check your stats and revenue, improve and tweak existing Apps)
If what I just told you gets you excited and you want to learn more then you can check out the following case study:
Have a great day!
Simple App Built In 2 Days Makes $2,491 Per Day
If you want to build and publish your app 10X faster and easier then this short case study will help you...