Every initiative in any business should be tied to some kind of return on the investment. At Twin Engine Labs, we see the sizable investments our customers make into their product, and are often asked about getting the return on their investment.

First, an app business is a risky one, just as risky as opening any other business. Risk decreases when the app itself is a vehicle for other business value, ie: lead generation, information gathering, operational efficiency, etc (particularly in B2B or Enterprise Mobile industries), but there is still a risk of failure and the need for the investment to be recouped. Ideally, the investment is well-executed, deployed frequently, and helps the organization more than recoup the investment.

The app business is also a very crowded marketplace, so you need to stand out from the crowd or have a few brilliant marketing tactics up your sleeve. You will need patience, so plan accordingly. Often, you will need runway to be able to get your marketing channels right, the features attractive enough, and the aesthetic just so.

If your business thrives without the app, and the app is just adding value to your customers' experiences but not directly generating the revenue to keep you alive, your calculations for return on investment are a bit different. In this situation, the goal is generally to aid the company with app development efforts to earn more revenue and reduce operational inefficiencies enough that the ROI on the app is clearly understood. Or, as mentioned, create new distribution channels for customers to discover the company and derive value from (tools, communication platforms, document stores, support, etc).

But if your business is an app business, meaning that 100% of your revenue is derived from the function of your app, then you're probably already focused on how to achieve the return on your investment, or are seeking to understand all your options. Read on to see what they are, our experience with them, and what a reasonable rate of return looks like for your app.