Oct 09 - 2020
Apps are everywhere! Think about it! Think about any popular brand and you will find that they have a mobile app that you can download. Apps are predominantly made by businesses for customers. From a business standpoint, mobile apps are excellent business solutions irrespective of the intent they are used for. Apps are effective ways to boost your sales because it is easier to interact with your customer base through an app.
How much money will you make?
Well, the answer to this question greatly depends on a lot of different variables. Your app may not make a billion dollars, but you can access a piece of that pie and still turn a hefty profit.
For those of you who already have one, that’s great; you’ve got a head start. Just because your existing app isn’t making money hand over fist, it doesn’t mean that it’s too late to make adjustments.
One of the factors that impacts your revenue is whether you develop for the Google Play Store or Apple App Store.
It also depends on your monetization strategy. There are three main ways that mobile apps can make money.
- in-app purchases
Which platform makes the most money?
Generally speaking, there are two types of platforms to develop for. You’ve got to decide if you’re building for Apple, Android, or both platforms simultaneously.
You’ll need to conduct actual research to figure out who will be interested in using your app.This may seem like a daunting task if you’ve never done it before. But trust me, it’s worth the extra effort. It will save you headaches down the road and make sure that you don’t launch on the wrong platform.
As a result, releasing your app on the right platform will help ensure that you’re making as much money as possible.
What kind of revenue do they make?
So how much money are we talking about here?
Well, besides the platform, the type of revenue that an app makes will largely depend on the monetization strategy, which we will cover in greater detail shortly.
In fact, you may even have some trouble in this space unless your game is a top hit. There’s so much competition in the gaming world so it could be tough for you to compete with the industry leaders. But there is still plenty of money to be made even if you’re not launching a gaming app. Take a look back at those numbers. Industry leaders are still making millions of dollars on a monthly basis from just one platform. Take a look at the future projections for mobile app revenue worldwide in the coming years.
Types of revenue streams
Part of deciding what type of app you’re going to make is figuring out how you’re going to make money. This is the most important decision about the type of app you’re building. But one of the first steps has to be a business plan. Your app may be able to entertain an audience or even make their life easier, but that’s useless if it can’t make you any money. So you may have to go back to the drawing board and rework your entire concept based on the type of revenue stream you want to pursue.
Typically, these types of apps make two to three times more money than apps that use ads or paid downloads to generate revenue. But if your app is subscription-based, you desperately need to create content that keeps people coming back for more. Users will not pay you a flat monthly fee for an app that they never use. You might get some people to sign up at first, but they'll cancel after a month or two if they don't keep sharing.
The best way to get the most out of a subscription app is to target a large audience. You don't have to charge huge monthly or annual fees if you think you can get enough people to sign up.
As I briefly discussed earlier, if you have an existing business that sells products or services, a mobile app can help you make more money.
Although providing users with a product or service can be a very effective way to make money, you need to consider marketing, pricing and logistics.
This tends to complicate things a little. For example, if you are shipping a physical product to users who buy something from your app, then you have to make sure that the sale is still profitable after shipping, packaging, labor and all other costs associated with running your app.
Another way to make money with in-app purchases is to provide users with something intangible that can be used within the app.
Gaming apps use this strategy all the time to make money