According to an article from the New York Times, some venture capitalists have started making large investments into new cell phone technology that would make it easier to shop and buy online from your iPhone, Blackberry, or Pre Palm. They've invested more than $100 million already into this type of technology. If their investments are successful and these applications become mainstream for all 3G phones, they have the potential to change the way you run and design your e-commerce site. The aim of this new technology is to turn your cell phone into a virtual credit card. One of the companies that has started building this new technology, Boku, has laid out plans that you would actually use your cell phone number instead of your credit card number to make mobile purchases.  The theory behind this is that you are far more likely to know your own cell phone number over a credit card number and so will be more likely to make that purchase instead of wading through the frustration of pulling out a credit card and inputting all that information into your iPhone. The system then sends a text message asking you to authorize the transaction with a texted response. Your cell phone account would then sort of become a paypal account - any online purchases would show up on your monthly cell phone bill.  The pitfall to this scenario is that cell phone carriers currently charge a large fee for this paypal-like service, which makes it cost prohibitive for an e-commerce site to sell products on a mobile device. As of now, carriers can take up to about 50 percent of the purchase cost. This is one of the reasons this technology has failed in the past.  But venture capitalists who have made this investment see hope in the growing popularity of 3G phones.  They believe that if enough 3G buyers subscribe to this mobile service, cell phone carriers will significantly cut the cost per transaction fee for each mobile purchase. This technology has the potential to create another large revenue stream for your e-commerce site since it would make online shopping so portable.  The implications are that, when testing your website's functionality, it will become more important to design your e-commerce site to display properly on any number of 3G devices with a number of different carriers.  User interface applications, especially your shopping cart, will also have to be developed to format properly with cell phone service providers.

So you’ve got an app. You’re pretty sure it’s going to be the next big thing, and let’s be honest, you want it to make some money. There are so many success stories out there about the app developers who made it big with monetized apps (think Skee Ball and Angry Birds), so why not try it for yourself? Hold that thought: First, you need to understand how app monetization works. Second, you need to decide which monetization strategy will be most effective for you. There are several ways you can make money off of an app, but not all of them are going to be the best solution for your app. So, let the learning begin! How It Works If you’re looking to profit off of your app, you’ve got more options than simply charging for a download in an app store — though sometimes that’s the best method. Here are some of the most common forms of app monetization: Charging for download: As mentioned, this is the most straightforward way to monetize your app — choose a set price for a one-time download and away you go. Be sure to examine the marketplace thoroughly before you decide how much you want to charge; if there are already similar apps out there, you’ll want to make sure your price is competitive. In-app purchases: You offer your app for free, but allow the user to purchase extra features once they’re using the app — like virtual currency or in-game bonuses. This avenue works best when the in-app purchases have real value, and when the app itself has a good enough user experience to keep people coming back without those extra purchases, too Premium upgrades: You make a freemium version of the app available with the ability to upgrade to a more substantial version. The freemium has less functionality than the premium version, but it should offer enough value that users will want to pay for the full app. Advertising: You offer your app for free and rely on in-app ads to provide revenue. This model is often paired with freemium apps, with the option to remove ads once the user has paid for premium. Subscription: Like a freemium model, this method allows users to pay extra to bypass a paywall, upon which they’ll have access to the gated content. Works best for content-heavy apps, like ones for newspapers and online news sources. In order to put together the best monetization strategy, you need to base it on the factors surrounding your app. Which of the above would work best based on how your app operates? It’s important to determine your strategy before you even think of putting your app up for download. Assessing the Pros and Cons Just as there are many ways to make money from an app, there are pros and cons for each method. If the end goal is to make money while still providing an optimum user experience, then you’re going to have to find the balance between receiving a profit and not interfering with an app’s functionality. Take a free app with advertising, for example. According to SocialTimes, the pros include easily generated downloads, potential profit from marketing companies, and the ability to gather demographic data. On the flip side, cons include users finding ads to be repetitive or annoying, or the ads interfering with the app experience. Sure, you’re going to want to make money, but you don’t want to cause users to uninstall your app. Now, take the freemium model with in-app purchases. While you can leverage user engagement to help drive more purchases, you also risk losing users if they can’t move forward without paying. Likewise, with freemium apps you need to strike a balance between just enough features to make a download worthwhile, but not so many that a user doesn’t want to bother paying for the premium version. Strategize Before You Start You’re going to want to determine which pricing model best fits what your app does, or what problem it solves. You’ll have better luck with charging more if your app fills a vital consumer need, while you may struggle if you overvalue your app’s offerings, or if you give away too much for free. So long as your monetization strategy is part of your app plans from the beginning, you should be able to refine what you offer for what you charge.

Over the last few years, mobile apps have become the main driver (get it?) in changing the way we solicit rides to get around town. Two of the primary companies offering alternative modes of transportation are Uber and Lyft. While there are certainly other rideshare companies, these are easy to compare because they have a few things in common: Most used transportation apps. Both founded in San Francisco. Both fighting aggressively and publicly for business. Uber was the first of the 2, starting in 2009 and paving the way for similar companies. In 2012, Lyft joined the game and scooped up much of the riders - and drivers - Uber used to have all to itself. Today, both are faced with fighting each other for a better reputation, more riders, and more drivers. As such, the fight is starting to get dirty. War for Drivers The rideshare apps are seemingly struggling to maintain a reliable fleet of drivers. The remedy? Stealing drivers from each other. Since 2014, both companies have aggressively been poaching drivers from each other, with offers targeted at drivers of the opposing companies and offering sign up bonuses. As 2015 was just getting its start, the fight became stronger. Uber launched a full assault specifically targeting Lyft drivers to make the switch. The promotion offers that if you can verify that you are a Lyft driver, Uber will give a $500 bonus to make the switch to driving for Uber. The Lyft driver only has to have been driving for Lyft for a matter of weeks to qualify for this promotion.   GET $500 AFTER YOUR FIRST TRIP Already a rideshare driver? Great! We're giving experienced rideshare drivers like you $500 after you sign up to drive with Uber and complete your first trip. To qualify, you must prove you have driven BEFORE 1/8/15 on another ridesharing platform. Ostensibly in response, Lyft put together a promotion for Lyft drivers to stay aboard while at the same time beefing up the Lyft driver base. This particular promotion was developed for Lyft drivers to invite their friends to get started driving. Lyft offered that the current Lyft driver and the new driver would get to split $2,000 upon the new Lyft driver’s first ride. Yep, $1,000 a person. “Refer a Friend. Split $2,000. Friends don't let friends miss out on Lyft promotions. Refer a new driver in San Diego starting today, and you'll both get $1,000 if they give their first ride before March 5.” As such, Uber’s offer suddenly increased to $1,000...   GET $1000 AFTER YOUR FIRST TRIP Already a rideshare driver in San Diego? Get $1000 after you sign up to drive with Uber and complete your first trip. To qualify, you must prove you have driven BEFORE 1/8/15 on another ridesharing platform. Don't live in San Diego? No problem, you can still sign up to drive here. All seemed too good to be true, especially for current and new Lyft drivers able to both earn a grand over one ride.   In Over Their Heads Too good to be true it was as the plan backfired, leaving scores of angry Lyft drivers and newbie Lyft drivers furious with the company. The promotion launched February 26, 2015 required that the new driver must pass background checks by the end of the very short deadline - March 5, 2015 - to receive the funds. Apparently, Lyft became overwhelmed, per an email sent to applicants the night before the deadline: “Last week's invitation - apply to be a driver, give 1 ride by March 5, and make $1,000 - brought the biggest wave of applicants in Lyft history. As we're processing the applications, it's important that we continue to fulfill our safety obligations. Some of these steps, including DMV and background checks, are outside our control and can vary in length for different applicants. It is possible that you won't qualify for the promotion if all steps aren't completed by the March 5 deadline, along with the ride requirement. In the meantime, you can check the status of your application at lyft.com/drivers. We'll be in touch again via email with another update on Friday. Thank you for your patience.” The day of the deadline, Lyft really seemed to be reeling on their heels: “Lyft learned a lesson this week, and we're sorry for the frustration it caused you. We vastly underestimated the volume of applications we would receive for our $1,000 sign-on promotion, which was created to help us keep up with record-breaking passenger demand. We owe it to the driver community and our passengers to make sure our approval process is rigorous and complete. All elements of our safety process are imperative and can take time - that means some applications haven't been approved yet even though the applicant's DMV and background checks are in. We know this can be frustrating. Based on ideas from our community, here are the actions we're taking: Extension of deadline to March 12 for those who applied for this promotion and pass their DMV and background check by March 5. We're still completing our internal review of many applications, but if your DMV and background checks pass by end of day today (March 5), we're providing an extension until March 12 to meet your ride requirement. We, at Lyft, will not benefit from an application if an applicant does not qualify for the promotion and does not want to continue through the application process. By default, we won't use any information from the applications of drivers who don't qualify for the promotion, unless they would like us to continue with the application. You'll receive an email from us tomorrow evening with your eligibility for the extension outlined above. If you are not eligible, you will have the choice of whether or not to continue with your application.” Uber must be enjoying the seeming implosion of the referral program gone wrong. Race to the Bottom? Both companies have aggressively sought new funding for their services, which provides the backing for such expensive promotions. But can offering promotions like this offer a sustainable model for new drivers? Especially if the promotions are not followed through, the trust of the driving and riding community must be reaching new levels of skepticism. All this funding must be paid back...but if the drivers get fed up with empty promises, there could be trouble for the companies. What are your thoughts? Do rideshare apps offer a sustainable model for business? Were these promotions doomed from the get-go? Let us know what you think in the comments below.