Originally published April 10th, 2018, updated August 13th, 2019.
Mobile App Development Industry comes along with a huge potential to earn millions of dollars. However, not every app earns equal share of Android and iOS market revenue.
In spite of following the same mobile application development process to make money with an app, not every developer is enjoying the fortune of getting billions of dollars being transferred to their accounts. This is making startups and developers who are yet to enter the mobile industry encounter with questions like, “ Do apps make money?”, “How to make money from mobile apps successfully?” – questions we will tackle in this article.
But before we dig out answers to these questions, let me share one thing – There are over 3 million apps on both Apple App Store and Google Play Store, and many more are expected to enter the domain. Meaning, there’s a tough competition in the marketplace for making money with apps development.
In such a scenario, one thing that can prevent your app idea sink like Titanic is focusing on the right considerations before building an application.
So, let’s uncover what things you must consider before making any effort into money creating apps development.
Often, businesses think about how to make money from an app idea without giving much heed to what’s the secret behind apps that go viral and how to earn the same amount of fame and profits. An outcome of which is that they fail to achieve their goal.
So, the first thing you need to consider while determining how to make money by developing apps is to focus upon what features are making an app popular in the market. A look into this will not just increase the chances of earning potential profits, but will also help to lower down the cost of developing and maintaining an app.
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. Considering payment gateway integration will make things better. You can also attach most used mobile payment apps such as Google Pay, Apple Pay, PayPal, etc. in your app to increase your Android/iOS app revenue.
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, especially when creating apps for money.
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 second quarter of 2018, the number of Android powered smartphones sold was 329.5M when compared to 44.72 of that running on iOS. This clearly shows that Android users are in majority and thus, Android can be the right platform to make money with an app – provided the right strategy has been used.
But prior to digging deeper into the details of how much value you should put on your expectations in terms of making money with apps development, let us first look into how does the payment cycle work in Play Store and 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 decided iOS app revenue amount is earned.
When talking about how much an Android app earn, the amount that your paid app receives 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 platforms – iOS and Android, standing at in terms of revenue, here is the answer.
The global Android and iOS app revenue grew by over 23 per cent in the year 2018 to arrive at around $71.3B, 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 providing a better answer to how to make money from mobile apps – a value that is twice as much as what Google Play Store is making. Between 2017 and 2018, the Play Store and App Store saw revenue growth of 27.3% and 20.4%, respectively. However, the percentage rise in app downloads was 13% in the Play Store and only 6.6% in App Store.
Now that we know what are the things to consider while mobile application development 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 you make from an app?
Following are some questions that can help us in an objective interpretation–
[As we are talking about hooking a mobile app, learn about the science behind making your app addictive here:- What Wikipedia Can’t Tell You about Making Viral and Addictive Apps ]
The category your mobile app belongs to tend to have a huge impact on the amount you earn from your app.
There are some applications like ride-sharing apps which although hold the capability to earn high revenue for your business but doesn’t because of high competition. But, there are some that keeps you focused upon the amount you can earn from your app.
Here are those categories that you should look at to earn high revenue for your business.
Yes, you can. There are various ways of making money with apps development, irrespective of the store.
Let us skim through them –
Well the answer that holds true today is no. You don’t.
But soon, with more and more device types entering the app showcasing market – Home assistant devices, TV, wearables, etc., the earning number might come on a similar tangent.
Speaking strictly of today, next to mobile apps, apps made for gaming consoles, home assistant devices, and wearables tend to make the most money. So if your app belongs either of these categories, you are in luck.
Now that you know 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 technology trends for 2020 that are set to enter the mobile app development industry and 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.
*Do free apps make money?
Yes. There are multiple ways through which applications which don’t charge money from users make money.
Ways like in-app advertisements, sponsorship, and referral marketing through which these apps make money to grow their business.
*What are the most profitable apps?
If we had to list down three app categories that tend to make the most money for their parent business, it would be – Music app, Gaming app, and Video streaming app. All three of these app categories are such that the engagement level is very high.
*How much does the app store pay per download?
Apple takes 30% of the revenue made on the Apple app store and give the rest – 70% to the developers.
*How much does Google pay per download of an Android app?
Google takes 30% of the revenue made on the Android app and give the rest – 70% to the developers.
*Do apps make a lot of money?
It depends. But on a very generic note, until you have an established brand name supporting you or you have a strong community of influencers backing you, you will have to wait for some time before the breakeven would end.
The other thing that you can do is make multiple apps and publish them on stores to expand your earning ability.
*How much revenue an app can generate?
The value depends entirely on the core functionality of your app, the platform considered, the expectations of targeted audience, the monetization model chosen, and more.
*Can you make money from an app?
Yes, anyone can make money from an app.
*How much do mobile app developers make?
The value completely depends on factors such as platform, features, user expectations, monetization model, and more.
*Which Platforms Make the Most Money For App Developers?
While the value varies, it has been found that over 25% of iOS mobile app developers earn over $5,000 for their apps when compared to 16% of Android mobility experts. So, iOS is the platform that often makes more money.App DevelopmentHow Much Money Can You Make from an Appmobile app developer