There's no doubt that the voice-controlled speaker market is growing at an astonishing speed, with Amazon being the undisputed leader with Alexa devices and the 70% market share.
This is exactly the situation that we as entrepreneurs thrive on: the rapidly expanding market with almost no competition.
That's where the HUGE opportunities are! Plus, we're talking about Amazon, the world's greatest shopping engine and a shopping mall 🙂
...but there are currently no ads in Alexa skills, so where exactly are the monetary rewards coming from?
For starters, Amazon now has a nice fat budget to distribute to the developers to earn money by designing Alexa skills. Individual developers of popular skills have been receiving anywhere between $2,000 and $7,000 per month for their efforts.
This system is still in development, so there are still some issues to work through, but presently you can earn money by developing Alexa skills in the following ways:
- The Rewards Program
- In-Skill Purchases and Subscriptions
- Country-based Developer Promotions
The payment that you receive from the rewards program depends entirely on the customer engagement. So, if your skill takes off, expect to see a substantial monetary gain. However, people's tastes change over time, so it is not uncommon for you to get a reward for one month, and have your skill all but forgotten the next. Many developers find themselves with fantastic profits, while others struggle to maintain the footing after the initial leap gained from the rewards program.
To stay on top of your game, it's a good idea to develop multiple skill - if one goes out of favor, the other one shoots up.
Amazon informs you when and if your skill qualifies for the reward program, and they will transfer you the money by the end of the month. It is vital that you provide the payment information ASAP, or you will forfeit the reward when it appears.
Another thing to consider is that the rewards and prizes are not transferrable.
The following categories are currently being rewarded:
- Education & Reference
- Food & Drink
- Games, Trivia & Accessories
- Health & Fitness
- Music & Audio
In-Skill Purchases and Subscriptions
In-skill purchases work pretty much the same as in-app purchases on other platforms - there is a certain amount of content that is free and a premium whereby customers pay more for additional options.
One such example is one of the most popular skills - Jeopardy! With this skill, when you subscribe, you can effectively double the playtime, as you are provided with additional clues every week. The subscription is just $1.99 per month, which is not much - but that's precisely why so many people find it irresistible, and the numbers very quickly add up for the developers!
The customers are able to purchase your skills through their Amazon account.
This is still fairly new and fresh, so the rules of profiting from this enterprise are subject to change at any time, though one thing is for sure: with the industry growing this fast, this is an incredibly lucrative opportunity, regardless of what happens with the rules.
From the mouth of an Amazon spokesperson: "Bringing a subscription model to skills for Alexa will bring customers the benefit of new, engaging, and high-quality experiences while providing developers an additional way to earn money from their skills".
Country-based Developer Promotions
Amazon is pushing the Alexa skills big-way and the promotions for developers are already available in several countries. You can find the requirements for developer promotions for UK, Germany, France, and India.
Your country is not on the list? Well, based on what we're seeing, it's just a matter of time, so keep developing the skills and position yourself in the industry NOW.
In 1991, when I became the software engineer, programmers were hard to find. I could easily have two interviews in one day, and after one week choose 1 or 2 best contracts out 10 being offered!
Right now, Alexa skills developers are equally hard to find, which is why the standard fee by marketing companies is from $10,000 to $200,000 for serious clients. How's this for a plan: create 3 skills and make yourself available on Upwork and LinkedIn. You'll be inundated with work.
As always, no opportunities last forever... but creating Alexa skills opportunity is here now, rewarding big-time, and likely to last for at least several years.
Featured image is the courtesy of methodshop, https://www.flickr.com/photos/methodshop/39512740954, under Creative Commons.
How to Create Alexa Skills for Profit with no Coding
Want to start making profits by creating Alexa skills, and without any coding involved? It's very, VERY easy...
Watch the AI Revolution webinar replay for all the details