Im creating an app that pays users to play basketball. What are the cost of maintaining an app once successful?

[eaglehearted]

I created an app that pays users to play pickup sports. Pickup sports are sports that are played for fun usually at parks, rec centers, YMCAs, LA| Fitness, etc.

Users earn money playing basketball, football, or soccer:

The trick to making the app work is having the users earn the app enough money before paying out.

Facts of the business model

Minimum cash out is $5.00

Upon reaching 5 dollars users have earned the app anywhere between $17-24$ this is with many of the in app purchases being disabled for the alpha testing

How?

The main source so far has been in app ads and spectator mode. One of the ways I prevent cheating is letting players activate spectator mode when a game is in progress and users are waiting to play. Once entering spectator mode users enter a video game experience and keep track of scores and stats.

The average pick games last 12 minutes. I can show around 5 banner ads at the bottom of the screen without interrupting the users experience. Before you confirm your spectating results I often place a intersteller (Full Screen) ad at the end of the process.

Once a user reaches cash out he/she is able to use our reward screen to navigate between retailers such as:

** Reebok , Adidas, Nike, AirJordan, Chipotle, Tropical Cafe' Smoothie**

When users use the reward screen they are directed to the retailers using our affilate link. We get a percentage of whatever they purchses I'm not sure of the exact % per affilate provider atm...

Lets assume 1%

Assuming in app purchases account for an additional .25c per person bring the average user earning the app $17.50 before cashout...

Is this a sustainable business model with no other revenue coming in? In addition to 1 revenue stream (ads) there are additional streams adding up to 8 atm

Ads

In app purchases

Apparel Sales

Charge per transaction

Api

Subscription monthly

One time purchase of the app

Affiliate Marketing

Anybody with any experience in this would be helpful!

GENERAL FAQ

How the app works is simple

You are rewarded in credits for wins and points scored. The credits are worth a set value Ex. 200 credits =$5

Once you earn credits you can challenge another user 1 v 1 in your fav sport for credits. So say you're at 190 credits

(Remember credits=$5)

You could put 10 credits up against another user in a game of basketball first to 15. Winner takes all

Win you're at 200 Lose you're back to 180

There are 4 ways to earn

1. Quickplay - Earn playing 4v4 or 5v5 as usual playing at your usual park or gym
2. Challenge Mode - Take what you've already earned and put it up against your friends in a 1 on 1 game. Winner takes all!
3. Spectator Mode - Waiting to play next? Enter Spectator Mode & record points & results and earn while sitting on the sidelines
4. The Playbook - We send you daily, weekly, & monthly task to complete to earn on your own

 

[towerwatchman]

@eaglehearted This isn't a helpful comment, so I apologize but if you can get this on a national level, that would be awesome. As someone who's always looking for pickup games (for any sport) where ever I move, this would be quite nice to have. Or even when I travel. I saw your post a while back and thought it would be great to have. Looking forward to see how this progresses.

 

[eaglehearted]

@towerwatchman Thankyou and yes it is a helpful comment. So many times I get called a moron or an idiot for this app...

Any positive comments do bless my spirit a whole lot !

The plan is to go national. We are launching with basketball, football, & soccer as options so we already have multiple sports!

Thank you.

 

[jezreel37]

@eaglehearted What stops a bunch of kids from pretending to play a match and decide whoever wins and simply spam money? That would be an infinite source of money.

 

[eaglehearted]

@jezreel37 Great question there are multiple ways to prevent cheating

1. You are limited on challenge per day 2 on the free version, You can not challenge the same user back to back in the free version
2. You have to be 0.01miles from a Coast 2 Coast location - You can add your own location but Quickplay 5on5 or Challenge Mode 1onq will not unlock until you are there

 

[cavitebeliever]

@eaglehearted Hello there! As an avid pick-up basketball fan, I think this is an amazing idea.

I own a Microtargeting business and would really like to see something like this happen.

How can I help?

 

[eaglehearted]

@cavitebeliever So far the app has been all me. I designed, taught myself to code, and spend all day outside of practice and work stressing the word and marketing the app.

I've stood in traffic, posted up at barbershops, went to schools, fitness events, etc to market

I've been teaching myself marketing andmannged to get my COC to about 0.05c per click on Facebook with 20K people signed up

I need all the help I can get though

 

[crazyc73]

@eaglehearted I like this concept! As someone who plays basketball all the time it's a great way to coordinate pickup games. Pick up games are huge at my college and others around the country. I would highly recommend advertising to those playing games and after they finish playing you walk up to them and give them a flyer or a quick pitch. Huge potential in that sense and I know you mentioned schools already but targeting colleges can be huge. Find influencers at various schools to do the work for you.

 

[eaglehearted]

@crazyc73 I've been to FSU FAU UF USF I'm right w/ you! I spend most of my time at Broward college as its thick there anytime after 5

I agree most people have been receptive of the app after I explain how it works and prove it's not a scam. You know how that goes lol

I do appreciate it ! I sent you a DM to our Instagram. Any suggestions as far as the post goes?

 

[eaglehearted]

Yeah shoot me an email if possible boss