6 Reasons Why Your Mobile App Reseller Business Is Stalled and How to Fix It| By |Andrew Gazdecki

Mobile is an exciting new battleground that many marketers, entrepreneurs and resellers are looking to break into. Until recently, the technology know-how was a big hold up for many. But as the app market continues to grow, more DIY app building programs are making it easy for ambitious entrepreneurs to enter the business of mobile.

With the right partner platform, anyone with some motivation and the desire to learn a few things can start his or her own app business. DIY app building programs offer you the tools to create apps in a WYSIWYG environment, without knowing how to write a line of code.

App reselling programs offer to the potential to generate a great deal of revenue to both sellers and marketers. But like any other business, you can easily experience some hiccups. That doesn’t mean you should walk away from the potential to earn a lucrative income. It just means you need to look at some ways to reboot your growth. You can start by looking at some these 6 common problems that many reseller experience, and then explore the tips on how to fix them.

You Are Not Utilizing Marketing Materials

You may be a born marketer and have been in the biz for years, but selling mobile apps is an entirely different beast than what you may be used to.

There are nearly 3 billion mobile apps on the virtual shelves of the Android Market and the iOS store, and the app industry is expected to grow into a $77 billion dollar industry by 2017. This means that there will be a lot of changes—something very common for new marketing channels and technologies in their infancy. Thus, the sales pitch and platform that worked yesterday to sell apps may not work today. You need to stay educated and informed about sales trends in the app industry.

Luckily, any good mobile app reseller program will likely offer a lot of helpful marketing materials that are specifically geared towards selling apps to your target audiences, whether they be any small business or a specific niche, like hotels, bars, etc.

Your development partner will have a vast library of resources such as ebooks, videos, case studies and webinars that you can use to help explore ideas. You should also have access to training videos that offer tips for selling to different niches.

Set aside some time, and educate yourself using the tools the reselling program has to offer. Take in all the knowledge you can regarding sales and marketing in the app industry.

Also, make sure that you take advantage of any free training opportunity you are offered – these are often well-researched programs developed by professionals in the app industry. Remember, the app development platform you are using only profits when you do. With all of your past marketing and sales experience, you may have overlooked these resources when you first enlisted in the program.

These are a good place to start. Even if you did read them, maybe there is new useful blog content or that eBook you read once has been updated to meet emerging mobile trends. Don’t underestimate the value in the materials your reseller provides you with.

Your Pricing is Flawed

When it comes to reselling mobile apps, pricing is a tri-fold topic. Most immediately, you have to be concerned with the pricing of your apps. Is it competitive enough with what others are offering?

Another problem that resellers encounter when pricing is that mobile apps can be extra difficult to price because there’s also going to be routine updates and maintenance required, which is why a lot of sellers will include a monthly service fee in their pricing as well.

Keep in mind, 46% of small businesses fail simply because they have no knowledge of how to price their products or they use what is called “emotional pricing” where they charge what they feel is the best price for their products.

If your prices are too high or too confusing, leads may be quickly deterred and choose another seller. Research shows that 58% of people shopping for anything perform online research and compare prices before they commit to a purchase. That means that your price plan needs to be clear-cut and simple to understand. If it’s not, your potential clients will go to a vendor whose pricing is.

All of these different factors prove that you have to invest time in studying the right pricing model and place yourself in the right quadrant for earning a substantial income.

The last issue with pricing is knowing when your price shouldn’t be monetary. This is an especially crucial point for brand new mobile app resellers. While generating profits is always a main objective, sometimes, especially at the start, publicity is even better.

If you aren’t getting a lot of business, it may be time to give away some freebies. Creating a free app, in return for a glowing review or a social media shoot-out is a good way to give your company the initial traffic it needs to start growing.

The thought of giving products away for free can seem really scary—especially for a start up on a shoestring budget. But remember, it costs anywhere between 4 to 10 times more to acquire a new customer than it does to keep one.

You Lack Specialization

While mobile is still relatively new, chances are you aren’t the only mobile app reseller on your block. If you don’t have a unique selling point, then you are just another salesman knocking on the door. The easiest way to distinguish yourself from the competition is to find a niche or specific type of business that you are especially adept at creating apps for.

It’s an age-old business debate—are you a generalist or a specialist? There’s no doubt that both have their places in the world, but when it comes to sales—especially in the technology niche, you need someone on your team who can meet the specific needs of your clients. In fact, Harvard Business Review conducted a study that compared B2B companies that employed specialists vs. generalists. The results were astounding, and the study proved that for every four generalists on your team, you need at least one specialist.

Specialists contributed to over $236 million dollars in gross sales, yet the cost to employ them was a mere $20 million. That’s an ROI of $216 million dollars. So while you may be concerned about the cost of specializing your app business, keep in mind the ROI that comes as a result of that cost.

What this means to you as a white label app reseller is that you need to pick a niche.

While this will certainly limit your potential clients to a specific, target group, that isn’t inherently a bad thing. A more specific niche results in a shorter, more manageable list of leads.

This allows you to put in more effort and be more thorough with your homework for each prospective company. The result will be a more personalized pitch with a higher chance to close. It’s no secret that nearly half of B2B shoppers shop like consumers do when they are looking for companies online. And one of those shopping statistics that you need to keep in mind is that 58% of those B2B shoppers expect a personalized experience for their niche. That means if you don’t know the ins and the outs of that business, you are going to lose a potential client to someone who does.

Specializing your mobile apps will also have a number of other benefits with regards to your ability to close more efficiently. Most obvious, it sets you apart from general app resellers who cater to a variety of industries. When you specialize in a certain industry, you become knowledgeable of the certain issues and trials that business owners face and are thereby better equipped to meet them, and studies show that sales from highly trained specialists increased by 123% when compared to generalists.

Additionally, you are going to become familiar with the app features that work best with your chosen specialization. This makes it easier to produce apps in shorter time frames. And ultimately, you are going to be making higher quality, more creative apps that produce better results and turns clients into promoters.

You are Failing to Use Lead Nurturing

Part of the appeal of adopting a more specialized approach to reselling apps is that it gives you more time to make sure your sales and marketing strategies are aligned. Remember there are two different journeys that are occurring simultaneously—you are looking to sell and the business is looking to buy.

You need to nurture the buyer through the process. When you practice the art of lead nurturing, you are more likely to generate 50% more sales, and 47% of those will be much larger purchases.

To do this, you need to make sure you are on the same page as your buyer so that you are not that pushy sales person that no one wants to talk with. 63% of the people you speak with are not going to buy your product that same day, or even within three months. In fact, 20% of them are going to wait as long as 12 months to buy. Through the buying process, they will go through three different phases:

  • Awareness
  • Consideration
  • Decision

Make sure you can nurture their needs through each one of these phases—despite how long it takes them, so when they are ready, it is your company that they turn to. Simply put—you have some time and some work ahead of you.

There are two really surprising facts that should keep you motivated and excited to speak with customers as they journey through these phases.

First 44% of sales people give up after one follow up call. Now, if the buyer has three stages of thinking to pass through, there is no way that one follow up call is going to establish the necessary personal relationship you need to close a sale. Research confirms that you need more than one follow up. In fact, 80% of sales require five follow-ups.

With each follow up, you learn more and more about the customer’s needs, and you establish that personal relationship that is crucial to creating long term clients—remember 80% of your future revenue will come from 20% of your existing client base. Take the time to establish those relationships so that you can build that loyalty.

You Aren’t Appealing to Small Business Owners

For the most part, you’re going to be targeting small businesses with your white label apps, as large companies can afford their own in-house mobile development team. Thus, you need to know how to market and appeal to small business owners.

These individuals have smaller budgets, less time and less patience, just to name a few ways they differ from larger organizations. There are 6 useful insights you need to keep in mind when dealing with small businesses.

  1. Everything you sell them must be easy to use. Small business owners have very full plates.
  2. Experiment over and over again. Learn from what you do right, and throw away what doesn’t work.
  3. Always provide several options to contact you. Some people prefer text or email, other prefer Skype, and some want a good old fashion phone call. Make sure you provide any option you can think of.
  4. Understand whom you are dealing with. Small business owners come from a variety of backgrounds. Some may come from a big business background while others may come from a long line of main street shop owners.
  5. Speak in their terminology. Don’t walk into a mom and pop hardware store owned by two people on the verge of retirement and start talking about geofencing and push notifications. Use terms that resonate with them—just be careful not to talk down to them.
  6. Solicit Feedback. If you want to know how you are performing, go to the source. A great way to build relationships is to visit stores and see how well your product is working. Drop in and ask.

The simpler and more direct your approach, the more a business owner will listen. Direct saves them time and simple makes things manageable to them. This is especially true given the sometimes confusing and complex nature of mobile apps.

You are Not Being Proactive Enough

The root of a lot of these common problems can be chalked up to not being proactive enough. The mobile app industry is growing at a rate of 27% per year. So, if you want to tap into its growth, you need to work hard because there are a lot of markets across the globe that are untapped. The fact of the matter is if your app reselling business isn’t growing, it is probably because you aren’t doing enough.

You should constantly be exploring new opportunities, new trends in mobile and fresh, innovative ways to improve your offerings. Trade shows are a great way to spread the word about your app business. Attending conferences is another way to stay abreast of industry trends. Blogs are a great way to be proactive as well. In fact, B2B marketers who use blogs generate 67% more leads.

Looking into your competition and staying ahead of them is another way to stay proactive. Get the scoop on your competition. What is their price list? What is their sales pitch? How do their customers feel about them? There are plenty of digital resources that can help you.

  • Google Trends will help you see where people go when they leave your page.
  • Google Alerts will tell you what your competitors are up to.
  • Follow their social media pages to see what promotions they are offering.
  • Ask their customers why they like them.

A large part of being proactive also involves following up with leads—again five follow-ups can close about 80% of your sales. If you haven’t heard back from a potential client, it doesn’t necessarily mean they aren’t interested—again it’s two different journeys occurring together, yours and the client’s. Remember, small business owners are especially short on time and have a lot on their minds. Sometimes, a simple follow up call can remind them of your pitch and start turning the wheels.

And lastly, promote, promote, promote.

  • Make sure to register your business with Google, Google+ Local, and the local listings and directories in your area.
  • Make sure your web page is attractive, easy to use, has social sharing buttons, and is optimized for mobile.
  • Learn how to use Google Analytics and Google Webmaster Tools so that you can analyze your web traffic.
  • Use social media and join LinkedIn groups in your niche, and make sure your posts have pictures.
  • Use Google AdWords to market online.
  • Get involved with your community.
  • Solicit feedback, and respond to comments on social media.
  • Launch a blog and hire a good writer to write quality content. The better your content the more you will be regarded as an industry expert. Quality content helps you build a solid reputation.

Whether it is your own business or the apps you’ve made, you should be working tirelessly to get the word out and keep it fresh on everyone’s mind.

Conclusion

Growth is a concern of every business. Part of your goal as a mobile app reseller is to help other companies with their growth, but sometimes it is your own team or company that needs a little boost. It is easy to hit a wall and let business slow and become stagnant, but remember 50% of small businesses survive their first five years and one third survive 10 years. They do this by finding a way around that wall.

If you are experiencing difficulty growing your mobile app reselling business, then one of these 6 common reasons and solutions will likely relate to your problem and give you the necessary tips to break through that wall and continue succeeding.

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