If I'm reading you correctly, you definitely made money on the App Store. But it sounds like you are still tens of thousands of dollars underwater in opportunity cost. Is it wrong to think about it that way?
You get "more than half" $3400/month, let's call that $1700/month over the last two years, for $40,800. The two of you spent two man-months developing the app originally, and maybe a month or two since then. Let's call that 3.5 man-months. In some sense, your only cost was about $4,100 (cost of living + failed designer + $500). However, you could also have just worked for someone else. Two years ago (when you developed the app), it looks like iOS development was getting billed at about $150/hr (in Austin, SF, and elsewhere, though one guy in Ann Arbor quoted $75/hr) [1]. 3.5 work months is about 595 work hours which is about $89,250. (Put another way, if your contracting hourly rate would have been $70/hour, you would have just broken even now.) If that math is correct (and I've made all sorts of assumptions), you would have done financially better to work for someone else (especially someone at the top of the charts), no? In a sense, did you "spend $100,000 on an app" in opportunity cost? How long do you estimate your app will continue paying out a "dividend"?
It sounds like you are saying: apps don't make that much money, so don't spend lots of money developing them. But apps seem to take at least a few months to develop, so it seems inevitable that apps will cost a lot of money if the developer/designer time is market price. (A <$10,000 app in 3.5 months would be an hourly rate of <$17/hr, for example.) Is that true, and if so, do you think aspects of that will change over time?
[1] http://news.ycombinator.com/item?id=1251155
You get "more than half" $3400/month, let's call that $1700/month over the last two years, for $40,800. The two of you spent two man-months developing the app originally, and maybe a month or two since then. Let's call that 3.5 man-months. In some sense, your only cost was about $4,100 (cost of living + failed designer + $500). However, you could also have just worked for someone else. Two years ago (when you developed the app), it looks like iOS development was getting billed at about $150/hr (in Austin, SF, and elsewhere, though one guy in Ann Arbor quoted $75/hr) [1]. 3.5 work months is about 595 work hours which is about $89,250. (Put another way, if your contracting hourly rate would have been $70/hour, you would have just broken even now.) If that math is correct (and I've made all sorts of assumptions), you would have done financially better to work for someone else (especially someone at the top of the charts), no? In a sense, did you "spend $100,000 on an app" in opportunity cost? How long do you estimate your app will continue paying out a "dividend"?
It sounds like you are saying: apps don't make that much money, so don't spend lots of money developing them. But apps seem to take at least a few months to develop, so it seems inevitable that apps will cost a lot of money if the developer/designer time is market price. (A <$10,000 app in 3.5 months would be an hourly rate of <$17/hr, for example.) Is that true, and if so, do you think aspects of that will change over time?
[1] http://news.ycombinator.com/item?id=1251155