Mobile Apps form of the biggest industries around the world. There are over 3 million apps in the iOS Apple Store and Google Play Store. This huge number indicates that there is a large market available for these apps. Google Play Store and iOS Apple Store provide app developers with an opportunity to make large sums of money. But not all apps reach the top position in the market.
How Much Money Can an App Make?
The top 200 apps generate on average $82,500 daily but it is vital to understand that not all apps can make equal amounts of money. Getting revenues in millions of dollars is not a common occurrence. Since not all apps generate equal amounts of revenues, developers mostly ask the following question: how much money can an app make? Can my mobile app catch the attention of other people and start generating some money for me? The purpose of this blog is to discuss the various ways in order to make money.
Tough Competition or Huge Opportunity
As discussed above, there are 3 million mobile apps which exist on all the different app stores. And this number is to grow continuously. Even though this means that there is a large revenue available, it also means that there is a huge competition in the market. In order to ensure that you remain on top of the market and gain popularity in the market, you must develop an app which has the potential to reach the top. Even though it might seem like an easy task to create an app, it is not so. A lot of cost is involved in developing the application. Therefore, before starting the development of an application it is important to have definitive answers to the question of how much money can you make from an app.
App Niches to Generate Money
There are a large number of niches available which can be the basis of an app. For example, an app can be of gaming, entertainment, or E-commerce.
Apps which are games basically own the app industry. This is because most of these games are quick and short. They let the players quickly complete a level. Users of gaming apps pass their time. Even in their spare time they can play these games to relax and rejuvenate themselves.
Apps such as Netflix, TikTok, and others fall in the category of entertainment. This category is the second largest revenue generating industry in the app world. Millions of subscribers are present on these apps. They are convenient to use and provide the necessary entertainment thus killing the time of users.
Mobile apps which allow users to shop for different things is the third largest niche. They provide ease to the users. Mobile apps of Foodpanda is such an example. With the increase in the popularity of online shopping, these types of e-commerce apps have gained more and more popularity. They are a sure way to generate money.
The communication apps such as Whatsapp, Viber, Line, and all others are also a huge market. There is a revenue in developing these apps as well. Even though, there is a steady market for communication purposes in Whatsapp, other communication apps can become popular too.
App Revenue Models
Apart from understanding how much money can you make from an app, it is important to know the different models which can be used to monetize an app.
One Time Payment
These are premium apps. These apps are not free to download. They need to be purchased one time and then they are free to use. There are many apps which use this model to generate money through their app. Apps such as 1Weather and Bouncer use the one-time payment models to gain the revenue.
In App Purchases
Fortnite is an app which uses this model to generate revenue. As per this revenue model, a person can download an app for free and use some of their features. But on the other hand, if the user wants to use all of the features they must pay some kind of amounts. Most gaming apps use this model. Apart from features, some gaming apps have coins which help in buying different features in the games.
In App purchases can be further divided into freemium models and subscriptions models.
Freemium models provide a free trial to the user and they hope that the users will enjoy using the app so much so that eventually when the free trial ends, they will be more than willing to buy the app. This will generate some solid revenue through the app.
Subscriptions models are those in which the users subscribe to a certain application. The application might be of a magazine, audio services, or video services. Each user will be charged a certain amount in order to keep up the subscription. Users might be charged on a weekly, monthly, quarterly, or annually basis.
In App Advertisement
Often times, when you use an app an ad pops up in the middle of your app usage. You could have just ended the game or a level, gone through a page, or any other task might be performed through the app and in the middle of it an advertisement might be shown to you. People pay the app developers to show their apps when a person is using their app. The company which wants to show their ad provides detailed support to place the app. This way monetization of an app can happen.
Some apps earn millions of dollars in no time. Some apps are not successful at all. It is important to understand that not all apps will be an immediate success. But at times, if an idea of an app is so genuinely interesting that users might immediately get attracted to it and decide to use it all around the world. But in order to ensure that some kind of revenue exists in the app, a revenue model must be followed. This will allow the app to bring some revenue.