Alexa has become one of Amazon’s most popular services. It's used by millions of people every day across hundreds of thousands of devices. With Alexa, users can ask questions about their home or schedule appointments. They can also use it to control smart homes. And now, they can even earn money using Alexa Skills!
Amazon introduced its first reward program back in 2016, called Skill Creators Program (SCP). The company promised $10 million USD per year as part of this initiative. At that time, there were only two categories available – voice shopping and trivia games. But since then, more than 100 new types of skills have been added to SCP. So if you're an app developer looking to create your own Alexa skills, here are four things you need to know before taking advantage of these opportunities.
Yes, you can make money off of your Alexa skills. In fact, with the introduction of the Alexa Developers Reward Program (ADRP), you can potentially earn up to $1.5M USD annually! However, depending on which category you apply under, you may not see any earnings until at least 2021.
One thing worth mentioning, though, is that you will need to meet certain performance requirements for each type of skill. For example, you'll want to hit 1,000 requests per hour in order to qualify for revenue sharing. If you don't hit those numbers, you won't receive any payment from ADRP. You should also note that while we've seen many top apps listed under the "voice shopping" section, you could technically find yourself earning income through other categories like "social."
In addition to making money via ADRP, you can also opt into another platform called Skillful. This site allows you to sell your skills directly to customers without needing to go through Amazon. While Skillful doesn't offer direct payments, you can still earn money selling your skills through it.
If you'd rather focus on building great products, but would prefer to keep them out of the hands of third parties, you might choose to partner with Amazon instead. There, you can set up your product page so that when someone buys your skill, he/she gets redirected to your Amazon storefront where the purchase happens. Then, once the sale ends, you automatically start receiving a commission check based on the price point of the item purchased.
As mentioned above, you must reach certain thresholds in order to qualify for ADRP. These include having 5,000 active monthly sessions, 10,000 total transactions, and 500,000 total impressions.
There are several ways Alexa makes money. First, there's the free tier. Through this feature, anyone who owns an Echo device can access Alexa content and features whenever they wish. Additionally, you can customize Alexa settings to change her behavior. As long as she isn't connected to Wi-Fi or paired with another person's account, she shouldn't charge anything during use.
Another way Alexa earns revenue is through advertising. When you enable ads on your skill, you can place an advertisement banner next to the skill description box. These advertisements are targeted toward different audiences based on age or gender. Ads appear randomly throughout the user experience.
The most lucrative method, however, is through in-app purchases. By enabling this option, you allow your audience to buy items within your skill. Once enabled, you can specify whether the purchase requires a credit card number, a coupon code, or both.
Many skills use coupons to incentivize users to try something new. A common example is offering discounts on food delivery orders. Other times, you may want to encourage users to subscribe to a service or pay attention to specific information.
You can also add virtual goods to your skills. Virtual goods come in all shapes and sizes, including toys, clothing, music, books, videos, and more. Some examples of virtual good providers include Google Play Games, Steam, and Apple Arcade.
For instance, you might want to let players unlock additional characters in a game. Or maybe you'd like to provide premium video streaming options. Whatever the case may be, you can take full advantage of virtual goods by integrating them into your skill.
Additionally, many skills utilize subscription packages. Subscriptions can range anywhere between 30 days to 12 months, allowing you to charge recurring fees. You can also bundle multiple subscriptions together to form larger bundles.
To promote your Alexa skill, you can either work with a marketing agency or hire an influencer to help boost awareness. Marketing agencies often specialize in online reputation management, social media promotion, SEO strategies, etc. Influencers typically have large followings, so their exposure can spread quickly. Both of these methods require significant amounts of upfront capital, especially given the cost associated with hiring a professional.
On the flip side, you can also leverage existing platforms like Facebook, Twitter, YouTube, Instagram, Snapchat, LinkedIn, Pinterest, Reddit, and others. Many of these networks already boast huge follower bases, meaning that you'll likely achieve greater success by targeting these accounts specifically. Of course, if you plan on doing this manually, you'll need to invest a ton of time and energy.
Alternatively, you could consider leveraging automated tools such as FollowerWonka and Twiplomacy. These programs essentially automate the process of finding influential figures and creating connections with them. Not only will you save time, but you can also expect better results because bots aren't prone to human error.
We hope the answers to the previous question helped clear up any doubts you had regarding the financial potential of developing Alexa skills. Now that you understand the basics, you can dive right into the fun stuff...building awesome skills!
Before launching your app, however, you should familiarize yourself with the following concepts:
Make sure your app works well on mobile devices
Be mindful of privacy issues involving personal data
Optimize your pricing model to maximize profits
Keep track of your activity metrics to ensure growth
And finally, stay open minded and prepared for anything. No matter what comes your way, you never know when the unexpected will happen and you'll need to adapt accordingly.
Alexa has quickly become one of the most popular voice assistants out there. And as it continues to grow, so too will its importance – especially when it comes to interacting with smart home devices. But beyond just controlling your lights or playing music, Amazon’s virtual assistant also offers plenty of ways for manufacturers to interact with their products through third party software.
One such way is by creating an Alexa Skill. These are essentially apps built specifically for Alexa that allow users to ask questions about products, receive feedback from other users, or even control certain aspects of the hardware they own.
In fact, over 500,000 Skills have been created since launch and many thousands more are added every week! In addition to being useful, these skills provide a great opportunity for people who want to create something new but don’t know where to start. With this guide, we hope to help those interested learn all they need to know before diving into developing their first Alexa Skill.
When someone asks “can I make money with Alexa?”, there are two main answers - yes and no. The short answer is that, if done correctly, building an Alexa Skill could generate revenue without any additional effort on behalf on the user. However, it isn't quite as simple as selling an app directly on Google Play or Apple's App Store. There is a lot more involved than simply making a purchase within the Skill itself.
The good news is that with over 500,000 Skills already available, many skilled individuals have found success by taking advantage of several different methods.
For example, if you sell jewelry, you might offer advice to customers based upon which ring fits best or suggest options based off color. Or perhaps you're working in real estate, and would like to show potential buyers homes using only your voice. You may find yourself able to charge for each question asked (or per minute spent), depending on whether you are charging for service or not.
You should always keep in mind that while you'll likely be paid for providing information or services via your Skill, there is nothing stopping you from asking for donations instead. This means that you can choose exactly what type of transaction takes place, allowing you to set up your pricing structure accordingly.
But let us explain exactly how this works. We've got everything you need to understand the ins and outs of Alexa monetization below.
If you'd rather skip ahead and jump straight to our list of top tips for earning money with Alexa skills, here's a quick summary.
Before anything else, you must ensure that your Skill meets the guidelines outlined by Amazon. One important thing to note is that you cannot use Alexa to deliver advertisements, promote a product line, or solicit payments -- those types of interactions are strictly prohibited. If you violate this rule, you risk losing access to the entire marketplace.
Once your Skill has been approved, you can then go about setting up payment systems. It's worth noting here that this process varies across countries depending on local laws and regulations governing digital transactions. For example, in the US, consumers are required to pay sales tax on items purchased with cryptocurrency. Other countries have similar requirements.
Next, you need to decide how you plan to distribute the funds earned from your Skill. Some examples include splitting them evenly among registered members or giving away free credits for future use. Others may prefer to focus on rewarding loyal customers or offering discounts to early adopters. Whichever route you take, remember that the end result should still look familiar to the average consumer.
Finally, you'll want to consider your competition. You may be tempted to try and compete with big names like Uber or Airbnb, but doing so won't necessarily guarantee financial success. Before launching anything, think carefully about whether your idea is unique enough to stand out against competitors that currently dominate the market. Also, make sure that you aren't competing unfairly by leveraging loopholes in current legislation.
As stated above, it depends on what kind of business model you opt for. Here's a brief overview of the various possibilities.
1) Selling goods: When selling physical items, you have complete control over price, quantity, delivery time, etc. Pricing models vary greatly between countries and states. Most commonly, prices tend to increase in relation to the size or value of the item sold. A common approach is to set a minimum order amount to prevent abuse.
2) Charging fees: This option allows you to charge an annual fee for accessing certain features or receiving extra benefits. Examples include paying $3/month to unlock premium content, $5/year to gain priority support, or $10/year to bypass waiting periods.
3) Pay per request: Similar to point 2, this method gives you full control over the cost associated with speaking to Alexa. An example includes charging a flat rate of $0.50/minute for calling the weather channel. Another popular example involves charging $1.00/item for purchasing a specific pair of shoes online.
4) Giving away credits: Instead of charging for requests, you can encourage users to spend money by offering limited amounts of in-app credit. This makes sense because you often wouldn't expect anyone to buy hundreds of dollars' worth of items in a single session.
5) Offering subscriptions: As opposed to charging a fixed fee for unlimited usage, you can offer monthly or yearly plans at varying rates. Popular variations include buying 10 minutes of speech data for $9.99/mo., 30 minutes for $19.99/mo., 1 hour for $39.99/mo., 3 hours for $69.99/mo., 6 hours for $119.99/mo., 12 hours for $179.99/mo., 24 hours for $299.99/mo., and 48 hours for $599.99/mo.
6) Using advertising: While ads can certainly play a role in driving traffic towards your Skill, they typically come with caveats. Namely, advertisers usually require you to display relevant text alongside the ad. Otherwise, you run the risk of violating relevant advertising laws.
7) Providing consulting services: Many businesses rely heavily on human interaction to do things like troubleshoot technical issues, perform research, or teach employees about company policies. By helping others solve problems, you can leverage your knowledge and experience to boost your reputation.
8) Leveraging existing infrastructure: Building something completely new requires significant upfront investment. However, if you have a preexisting platform or API that you can integrate with, you'll save time and resources. One example of this is integrating your Skill with Amazon Echo Show displays.
9) Making in-skill purchases: Similar to point 7, you can use your Skill to ask users to spend money inside the application itself. For example, you might enable shoppers to add items to their shopping cart in exchange for special deals.
Aside from controlling appliances and ordering groceries, you can accomplish almost anything with Alexa. Below are seven ideas to get started.
1) Playing games: Whether you're looking for fun activities for kids or adults alike, there's no shortage of titles available on Amazon. From classic board games to trivia quizzes, you'll never feel bored again.
2) Learning languages: Want to expand your vocabulary? Take lessons from native speakers on topics ranging from math to geography.
3) Monitoring your health: Use Alexa to check vital signs or track your progress toward goals.
4) Managing finances: Keep tabs on bills, investments, and spending habits with easy-to-use tools.
5) Shopping for gifts: Ask Alexa to search Amazon for items perfect for friends and family.
6) Listening to music: Listen to songs, podcasts, audiobooks, and radio stations anytime anywhere with ease.
7) Communicating with loved ones: Schedule meetings, send messages, share photos, and listen to voicemails right from your phone.
There is truly no limit to what you can achieve with Alexa. Just remember that you'll need to follow rules laid down by Amazon to avoid getting banned. Once you've completed your Skill, you can then apply to join the ranks of successful developers.
Amazon's voice assistant, Alexa, has become one of the most popular ways people interact with technology today. It's so good at doing things like ordering groceries or setting timers that we even use it as our alarm clock. But while its success may seem obvious, the fact remains that not everyone knows about all of the great features within Alexa. One feature that isn't often talked about is Alexa Developer Rewards (ADR). This program allows developers to share their expertise by building useful skills through which customers can learn new tricks and experiences. The more these skills engage users, the more they will pay back to the developers who built them.
Alexa Skills Kit is the software development kit used to create Alexa skills. Developers sign up using the Alexa App store, where they have access to both free tools and paid resources such as APIs and training courses. Once your skill is live, you'll want to keep it updated regularly. That means taking advantage of every opportunity to improve it and gain user feedback. You should also check out this list of tips for creating fun, informative, and interactive skills. If you're looking to turn Alexa into something bigger than just a smart speaker, there are plenty of other ways to leverage her capabilities.
While there aren't any hard and fast rules when it comes to making an Alexa skill, here's how long I took to develop my own:
I started developing my first Alexa skill after reading an article called How to Build Your First Skill For $1,000 Using AWS Lambda. While this was only true if you were willing to spend $1,000 on hosting costs, the idea of being able to put together a simple yet effective skill quickly appealed to me. In addition to being cheap, the process felt very similar to writing code. So, I decided to try to replicate the experience by learning how to write a basic skill myself.
The next step involved downloading the Alexa SDK from GitHub and getting familiar with the terms "handler" and "intent." My goal wasn't to make anything complicated, but rather to understand how Alexa works before attempting to build anything else. Over time, I learned that learning Alexa meant spending hours upon hours studying documentation and tutorials online -- without ever feeling like I understood everything I needed. Thankfully, there are many helpful articles available via Google searches, YouTube videos, and blogs. Even so, I still found that the best way to learn was hands-on practice.
Once I had the basics down, I spent several months putting together my first skill. Along the way, I learned quite a bit about programming and worked closely with a friend who knew far more than I did. As you might imagine, this required a lot of trial and error, and it probably wouldn't work well for someone inexperienced with coding. Luckily, a skilled programmer could likely finish the entire project within a week!
Nowadays, I've made two additional skills and created a few others along the way. Most recently, I developed a skill called What Am I Listening To?, which lets you know what music you're currently listening to based on Spotify data. Although I didn't go over how to do exactly that with a particular skill, it doesn't mean that you couldn't build one yourself. With some time and patience, anyone can figure it out.
When it comes to figuring out how to market and sell products, it's important to remember that Amazon isn't just selling books anymore. According to Amazon Prime Now, the company now sells nearly 500 items across 75 categories. And since Amazon owns Whole Foods Market, it's no surprise that the grocery delivery service sold 6 million pounds of produce last year alone.
As a result, it makes sense that Amazon would like to offer Alexa services beyond simply shopping. After all, why buy a product when you can just ask Alexa to order it? Just think about how convenient this would be: instead of picking up a book off a shelf, asking Alexa to read it aloud to you, then placing it back on the shelf, you'd never need to touch it again.
That said, it's important to note that there are certain limitations. Since Alexa is designed primarily for personal assistants, she can't really handle complex business transactions. She won't let you place orders for food or send emails, for example. However, that shouldn't stop you from thinking creatively. Instead of focusing solely on selling physical goods, consider offering Alexa skills that help businesses save money. There are thousands of opportunities to find ideas. Some examples include:
* An app that helps small businesses manage inventory levels
* A tool for event planners
* A platform for managing employee schedules
* A scheduling system for employees working remotely
* A service for helping companies track expenses
* A website for tracking sales performance
* A platform for finding the lowest prices among competitors
Of course, each of those options requires different types of skills. Whether you decide to build a digital coupon site, a price comparison engine, or a virtual assistant for business leaders, it's possible to connect directly to Alexa.
In addition to providing direct connections between businesses and consumers, Amazon also offers advertising solutions. These range from sponsored listings to custom ads on Alexa-enabled devices. When you choose to advertise on Alexa, you can customize your ad copy, set daily budgets, target specific audiences, and optimize results.
According to a recent report published by Statista, there are approximately 3 billion active mobile phones worldwide. Of those, 1.3 billion are smartphones. Considering that smartphone penetration in North America is approaching 90 percent, there are clearly millions of potential Alexa buyers.
Given that demand, it's easy to see why Amazon wants to bring Alexa to more places. They already provide Echo speakers, tablets, and laptops. Plus, they plan to release dozens of third party hardware partners later this year. Meanwhile, you don't need a special device to install Alexa apps on Android devices. So, regardless of whether you prefer iOS or Android, chances are you can interactively control your home audio equipment with Alexa.
One final point worth mentioning is that Alexa has been integrated into multiple platforms outside of the US -- including China, Japan, Brazil, Mexico, India, Europe, Russia, Canada, Australia, New Zealand, Singapore, South Korea, Hong Kong, Taiwan, Thailand, Philippines, Vietnam, Indonesia, Malaysia, Cambodia, Afghanistan, Iraq, Pakistan, Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, Oman, Yemen, Egypt, Israel, Palestine, Jordan, Lebanon, Syria, Turkey, Cyprus, Greece, Italy, Spain, France, Germany, Switzerland, Austria, Belgium, Luxembourg, Netherlands, Ireland, Finland, Sweden, Norway, Denmark, Poland, Czech Republic, Slovakia, Hungary, Bulgaria, Romania, Serbia, Montenegro, Macedonia, Albania, Bosnia & Herzegovina, Croatia, Slovenia, Kosovo, Iceland, Liechtenstein, Lithuania, Latvia, Estonia, Georgia, Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Ukraine, Moldova, Belarus, Ukraine, Russia, Mongolia, Kazakhstan, Iran, Turkey, Syria, Iraq, Libya, Tunisia, Algeria, Morocco, Mauritania, Senegal, Nigeria, Ghana, Ivory Coast, Benin, Burkina Faso, Burundi, Cameroon, Central African Rep., Chad, Congo, DRCongo, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mozambique, Namibia, Niger, Rwanda, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, Zimbabwe), Latin American countries (Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Panama, Paraguay, Peru, Uruguay) and Asia (China, India, Indonesia, Malaysia, Myanmar, Philippines, Sri Lanka, Thailand, Vietnam).
Since its debut in 2011, Alexa has grown to encompass hundreds of skills and counting. Many of these skills allow users to perform everyday tasks, like playing games, checking weather forecasts, or controlling connected appliances. Others focus on niche interests, such as cooking, sports, finance, fitness, health, news, travel, education, and pets. Still others serve entirely unique purposes, like playing music, telling jokes, answering trivia questions, or giving advice.
Nowhere is the diversity of Alexa more apparent than in skill categories dedicated specifically to entertainment. While these include games like Jeopardy!, Trivia Crack, and Wheel of Fortune, they also include activities like singing karaoke, dancing, and guessing the name of songs.
Just follow our battle-tested guidelines and rake in the profits.