How Much Money Can You Earn With an App?
Application development attracts both young and experienced entrepreneurs. Apps for smartphones draw sustainable revenue. For example, Clash of Clans game holds ground at recorded earnings of up to $168,000 per day.
A few years ago, the biggest doubt that made some talented IT specialists take a step back in app development was the uncertainty of profit. Apparently, some believed that a paid application was the link between the developer and real money. However, things have since taken a different turn with expert reviews indicating that substantial revenue can also be generated by free apps, not only by paid ones.
It’s important to note that not all app developers make good money, in fact, a number don’t make anything at all. But that should not give you a reason to abandon your passion in application development, since with the right idea, strategy and development team your chances to succeed are very promising!
Before an application becomes a money making avenue, proper ground work is important. Some newcomer developers are unable to make considerable profits because they are victims of common unforeseen mistakes that may include lack of proper research and application objectives. It is obligatory to explore the industry thoroughly before diving in.
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Advancement in technology has pioneered techniques for innovative people to make money. Application development is an investment strategy that has been adopted by startups and entrepreneurs who possess deep knowledge of digital technology and stay on top of modern technology trends. Those people realize that the digital universe in general, and the world of mobile apps in particular, offers countless opportunities for business.
All business people prefer investing in something that can actually make them money with fewer risks. So, how much money can you earn with an app? How much money can be spent to develop an app? An investor intending to put in some capital in the business would probably ask those two questions.
Opportunities of App Development Industry
App development is an industry that represents many opportunities. For example, one investor can choose to focus on gaming apps, another can choose to focus on photography apps while yet another prefers educational apps. The opportunities are indeed endless, take any type of existing apps. And you could also come up with something unique the world hasn't even heard of before.
A review published by Huffington Post listed some popular apps, whose developers were impressed with the revenue they generated. Clash of Clans – a gaming app topped the list with $168,000 of daily profit with 33,700 daily downloads. Pandora app followed second with $120,000 of daily revenue and 34,900 downloads per day.
Other apps, especially in the game category, that recorded considerable performance included Angry Birds, Flappy Bird, Mobile Strike and Pokémon Go.
With desktop application development held still by giants of computer software development such as Microsoft and Apple, the mobile phone industry offers opportunities for all
Mobile Internet usage has grown more than five times over the last 5 years. According to a review published by New Lines Technologies, at least $10 billion is invested every year towards mobile phone application development. Sounds impressive, doesn't it?
Over the last 12 months, the estimated global app revenue reached $46 billion with mobile games taking the biggest portion. Revenue generated from mobile phone apps is estimated to hit $75 billion by 2018.
While questions arise which category of applications would actually make you good money, most reviews indicate that either category would be just fine. For instance, many smartphones are designed to take incredible photos thus developing a photography app could present the same benefits as would be seen in the development of a gaming app. Gaming apps are reported to take about three-quarters of global application revenue. Non-games share revenue is estimated to drop by half within the next one year according to some recent reports.
Any application that has been developed with the interest of the user in mind becomes a magnet pulling them back to the app over and over, and this is what smart mobile app developers endeavor to achieve every time.
So, How to Make Money On Apps?
Just like any other business, application development has many aspects. You need to be certain about the kind of app you plan to develop, its functionality, abilities to survive on the market and attract users.
Most applications are free with developers expecting the users to unlock more features of the apps through in-app purchases, which is how they start making money. Other applications are free with ads popping up here and there to generate revenue. You can read more about pricing strategies for mobile applications in this article on our blog.
So why do some apps make good money with others offering smaller or zero revenues? What is the secret? It is simple - products which satisfy the needs of the customers best win the market over. The more you know your target audience, the more you can offer them. The simplicity of use contributes highly to an app performance in the market place. Depending on the nature of the app, it may be necessary to simplify the app based on the controls. For example, a photography camera app should be simplified with an easy point and shoot with one hand enough to operate all features. A game app, on the other hand, should be designed in such a way that the player does not need to be a gaming expert to understand the jargon, and the controls should be simplified depending on the game type.
Most social media apps such as YouTube, Facebook, Twitter, Instagram and many more have taken top positions. Newer applications like WhatsApp, Snapchat and Messenger are not lagging behind either.
When you think of investing in mobile apps, the first thing that comes to mind is the platform. The four major platforms – Apple, Android, and Windows are avenues that can be explored before an app is developed.
Most experts say that Android has more market potential compared to their close counterparts. But is this the case? It is true that there are more smartphones developed under the Android platform. But you should be cautious before you decide. Most importantly, read about the platform’s regulations before you make a choice. While Android may top the list with the number of devices in the market, it is not the most popular platform in terms of earned revenue by developers because Apple’s iOS occupies that position. It is estimated that over 25% of Apple’s iOS make at least $5,000 every month on their apps with Android coming in second at 16% of its app developers earning a similar amount every month.
It is worth noting that Blackberry OS and Windows mobile platforms should be avoided – at least for now - until their developers find ways to enhance their position in the market. Blackberry has continuously fallen behind in terms of market penetration with further reports indicating that its parent company – RIM – earnings keep diminishing year after year. Although Windows’ strong corporate backing from Microsoft contributes to some of its smaller recorded advancements, it also lacks overall market penetration and has faced severe competition from Android and iOS.
Most applications that represent better earnings are those that were profitable on more widely used platforms. About 2 years ago, a very simple app that was retailing at $0.99 iSteam (stimulates fogged glass on your phone screen) generated over $100,000 within a month. On Android, Car Locator app that was retailing at $3.99 reported earning roughly $13,000 a month while the Advanced Task Killer app continues to earn its developer over $10,000 every month by utilizing ad space selling and its $1 selling price.
Opportunities to make money with apps are endless and as technology grows so does the potential. As Smart TVs and smartwatches joined the industry thus confirming that the market is still open for more application development enthusiasts to try out their luck.
Although the market may seem somewhat over saturated, it is still promising. Making money with an app requires proper research to determine the app’s niche and anticipated target audience. With the right tools, team and strategy your app could be the next big thing.
How much money you can earn with your app?
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