Originally published April 10, 2018, updated 14 September, 2018
Mobile App Development Industry comes along with a huge potential to earn millions of dollars. However, how to make an app and how much money you can make from an app depends on a number of factors which we will discuss later in this blog.
It takes a certain kind of application that promises to become a million dollar story from the very day of its inception.
But, now that you have spent a fortune into bringing the idea of your mobile app into reality, it’s no time to think if your app is of that certain kind but the time for your app to bring you some return on your investment.
When you decide to build an app, right from the day you materially start planning, there are a number of things with which you should start the forethought. With over 3 million apps on both Google Play store and Apple App store, it would take careful consideration and groundwork on how to make an app and earn money from an app.
It takes a lot more than just an idea and a development team to make an app successful. There are certain things you must consider before thinking of making money with an app.
Often, businesses think about how to make an app and then they decide to go for app development with the aim of making money without giving much heed to how to make it work.
The thing is, apps need to be built in a way that they are capable of earning money. The cost of developing and maintaining an app also depends on the type of app being developed. An app will be useless if it does not have the potential to earn profits.
In a survey, it was seen that 63% of users prefer mobile apps for the sole reason of convenience. Other responses that were recorded in the same survey suggested something similar to convenience as well. All this concluded to the fact that customers want an app that is fast, efficient and visually appealing.
Payment is another big factor for users. Most users are skeptical about the security of an app which prevents them from buying your products. Having a secure payment gateway in your app will make things better. You can also attach already trusted payment gateways in your app such as Google Pay, Apple pay, PayPal, etc.
Even after doing so much, some customers may find the process of payment a bit tiring. For that apps can have the feature of saving credit or debit cards.
Choosing the right platform is yet another factor responsible. Android vs iOS is a very debatable topic and probably has no end to it. However, choosing one between the two requires some serious statistical support.
The average in-app purchase per user is 2X higher for iOS than it is for Android. But this doesn’t mean choosing iOS is the best option. Even though iOS has higher in-app purchases, the number of Android users surpass iOS users easily.
In the year 2016, the sale of smartphones consisted of 81.6% Android and the rest of iOS. This clearly shows that Android users are in majority and you can make money from Android app if the right strategy is used.
But prior to digging deeper into the details of how much value you should put on your expectations in terms of how to make money from apps, let us first look into how does the payment cycle work in Play Store and Apple Store.
How are Payments Made in Apple Store?
iOS App Payments are usually made in under 45 days of the last working day of a month when the app purchases were made. To receive the payments, you must provide all the necessary bank and tax details and documents, and you should maintain the minimum payment level. Also, there should be a minimum threshold amount you should have earned before getting the amount credited in your account otherwise it carries forward to the next payment date, till the minimum amount required is earned.
The amount that your paid Android app earns, gets credited to your account within the cycle of 30 days. There is no minimum threshold when it comes to the amount you earn with apps in the Play Store. If your Android app make money above $1, it gets credited to your account. However, Play Store works on a 70:30 payment distribution ratio. On the amount of money that you earn with apps, Play Store keeps 30% and credits the other 70% in your account.
If you are wondering that with payment models such as those stated above, where are both the platforms – iOS and Android, standing at in terms of revenue, here is the answer.
The global app revenue grew by over 35 per cent in the year 2017 to arrive at around $60 billion, as cited by a new report released by Sensor. Sensor is the app intelligence firm which measures subscriptions, paid apps, and the in-app purchases that have happened in both Google Play and Apple’s App Store.
However, the report found that Apple is the platform that is seeing maximum revenue growth – a value that is twice as much as what Google Play Store is making. Between 2016 and 2017, the Play Store and App Store saw revenue growth of 34.2% and 34.7%, respectively. However, the percentage rise in app downloads was 16.7% in the Play Store and only 6.7% in App Store.
Now that we know how to make an app and how the payment system works in Play Store and App Store and the scope of generating revenue that both the platforms have to offer, let us now understand the answer to the real question– How Much Money Can Your App Make for you?
Following are some questions that can help us in an objective interpretation–
It is often asked ‘Can you make money with apps in other ways?’ and the answer is yes. The ways of making money in apps that were stated above are all dependent on the app stores and the technicalities of the app. However, there are others ways to make money from an app and these are all in control of the app developer. Basically, there are four ways to make money from an app, irrespective of the store.
Let us skim through them –
Now that you know how to make an app and how to make money from mobile apps, you should get the benefit of knowing how the future for mobile app development looks like. Over the years mobile apps have seen good money and this will for sure continue in the coming years as well. The gaming apps are making millions every year but the simple apps are still on their way to earning millions. Augmented Reality, Artificial Intelligence, and Virtual Reality are the latest technology set to enter the mobile app development industry and this will change the whole market.
In conclusion, there are endless possibilities for earning big bucks attached to the applications you submit to stores. You only have to rummage through your options and make the best out of it. For more information, contact us at Appinventiv.App DevelopmentHow Much Money Can You Make from an Appmobile app developer