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How Much Money Can You Earn Through an App? Find Here

Akhil Kumar By Akhil Kumar | June 22, 2019
how much money can you earn through an App

“How much money can you earn through an app?” – As the mobile market is getting overflooded, this question is getting a huge attention. All the startups and established brands who were dreaming of getting a bigger slice of app market revenue – one that is going to hit $188.9B by 2020 – are getting stressed.

Global App Revenue Stats

They are getting mixed-feeling upon whether they should invest in mobile application development or not. After all, making money from their mobile applications has always been the prime purpose behind developing an app – regardless of what is the concept behind, what problem it is solving, and what user base it is targeting.

If you are one of those startups and are looking ahead to find a way to get out of this dilemma, this article will be a good read for you.

Here, in this article, we will take a journey to the mobile industry and touch different bases to find a relevant answer to the question – How much money can you earn from your app?

So, here’s starting with how much revenue does the mobile app industry generates.

A Glance At the Current State of the Mobile Market – ‘Revenue-wise”

  • Mobile app revenue, when compared to last year, have exceeded by $19.5B in 2019 Q1, which is nearly 17% Year-Over-Year profit.
  • Apple’s App Store unveiled that it has generated 64% of revenue in the last quarter among the two popular stores.
  • Consumers spent approx. $12.4B on the App Store worldwide, which was nearly 15% more than what was recorded in the year-ago quarter.
  • Google Play Store observed a rise in revenue by nearly 20.2% Year-over-Year, which is nearly 57% of the App Store’s total.
  • Tinder is the top revenue-generating an app in the mobile industry.
  • By 2020, the mobile app market revenue is going to hit $188.9B.
  • Many more developers will enter the mobile market – with Asia as the targeted location. And this is because Asia is predicted to deliver more than $85B to publishers by next year whereas the USA will be offering $59B only.

So, as we have covered so far, the mobile industry is generating more money day-after-day, giving a clear sign that it is the right time to create and make money on an app.

But, the next question that arises here is – which platform to consider? Should one choose Android or go with the idea of iOS app development?

No doubt, the aforementioned numbers have given a hint that iOS is the platform that will give you the correct answer to ‘how much money can a startup earn through a mobile app’, it is still good to make a decision based on other factors that influence the value, i.e., the payment process, channel of revenue generation, convenience, and more.

So, let’s check for the first factor that one should consider before investing in ways to make money on apps,i.e, the process by which payment is made in the two mobile app stores.

App Store vs Play Store: How Payment is Made?

In the case of an iOS mobile application, the payment is often made within 45 days of the last working day of the month when the app purchase was actually made. But, for an app development company to be able to receive this payment, it is a must that they have provided all the requisite bank and tax documents and details. It is also necessary for them to maintain a minimum payment value that they should have earned before getting the money earned from their application credited to their account – implying it will take you a longer time to recover the mobile app development cost you invested.

Whereas, when considering the Android platform, the amount of user pay gets credited to the app developers’ account within 30 days. There’s no need to keep a minimum threshold, implying you can even get $1 credit to your account.

However, Play Store operates with 70:30 payment distribution ratio. It charges 30% of the revenue generated and make 70% available to you. Because of this,

With this attended to, let’s turn towards the second factor, i.e, different business models to make money from your app – something about which we’ve written in detail in our guide to mobile app monetization models.

App Monetization Strategies to Consider for Earning Higher Revenue

Ways to Make money from Apps

In-App Advertisement

This is one of the most popular monetization models for mobile apps in the market. In this, the brands and app experts will display different types of advertisements, such as native, interstitial, and banner ads.

This monetization strategy, as per Sweetpricing report, is considered by around 32.5% of mobile providers.

In-App Purchase

In-App purchase model refers to the business strategy in which users are given an option to purchase a real or virtual products/services. It is highly popular in the marketplace – an impact of which is that users spend 24% of more money on an in-app purchase than what’s possible in the case of paid apps.

Freemium

Considered as an optimal answer to how do free apps make money, this monetization model is a combination of free and premium business monetization strategy. It helps brands to deliver basic app features to their audience for free. And later, demand for some money in return of upgraded features.

Email Marketing

Though Email marketing is one of the traditional marketing techniques, it works best in the app industry. In this process, you collect users’ email from the sign-in process and use it for providing personalized services to them using email notifications.

Subscription

In this mobile app monetization model, a mobile app is free to download. But, you have to pay a particular amount as a monthly and annual subscription at regular time periods.

Glance of How Much Subscribed App Earns

Sponsorship

This is yet another monetization model for mobile applications in which startups and established brands focuses on expanding user audience, promoting their app, and generating higher revenue. It is highly considered in the marketplace due to availability of loyal customers.

Referral Marketing

In this monetization strategy, you encourage users to refer your application to their near and dear ones in return of some discounts and offers. And in this way, earn money per download.

Crowdfunding

Another app monetization strategy that you can consider to earn more money from your mobile app is Crowdfunding. This strategy enables you to present your mobile application idea to a wider community and raise funds from them.

Now, as we know what are the best monetization models for mobile apps, let’s look into the third and last factor, i.e, convenience.

According to a report, 63% of users chooses a mobile application only because of its convenience. They look forward to using a mobile application because it is fast, efficient, and visually delightful. So, if you succeed to deliver a customer convenience, you will make more money. But, on the converse side, you might fail to achieve adequate downloads and revenue. So, look forward to crafting an effective convenience and user experience.

In addition to this, the answer to ‘how much money can you earn through an app’ is also varying depending upon the mobile app development timeline, app features, industry-focused, technologies considered, and app idea itself.

While these are some of the factors that will help you to know how to create an app and make money, there are various other things to know before going for an app development with the motive to profits. So, to be familiar with them all, it is better to discuss your app idea with a mobile app development services provider.

Also, it is profitable to have a look at the future trends of the mobile industry for making more money by creating apps. So, let’s wrap up this article covering the future app industry predictions for earning more money.

What’s Next in Mobile App Industry?

As more and more people are showing interest in discovering how much money do iOS and Android apps make, the trends in the mobile economy are also changing. While some of the traditional ways to make money with an app idea are going unpopular, various new practices are coming into play.

Some of such things that are expected to gain a huge momentum in the future are:-

Video Advertising

Video ads are appearing automatically on the apps and engaging the users much more effectively than normal ads. As a result of this, as unveiled by an article by eMarketer, video ads are offering a CTR of 0.39% with simple banner ads limiting to 0.12% of CTR only.

App Revenue Generated per channel

Because of this, it is expected that the businesses and mobile application developers will switch from banner advertisements to video ads for making more money by creating apps.

App for Smart TVs, Wearables, and Digital Assistants

Though in progress, mobile apps will sooner establish their reign in the world of smart TVs, wearables, and digital assistants. Several app development companies will look ahead to build an application that works on these platforms and thus, experience a highly-interactive experience.

Availability of two Mobile App Versions

To reap higher perks of the Freemium model, startups and mobile app developers will embrace the idea of developing two app versions – free and premium. And, in this way, they will target both the type of audience and get the best of, what we call as, how much do apps make.

Integration of AI

Artificial Intelligence (AI) and Machine Learning are also becoming more imperative than ever before. More and more businesses and mobile app development services providers will invest in AI application development to easily predict the behavior of their users, find out the ideal price for each impression, determine frauds, highlight the best deals based on time of day, location, app usage, and more.

Use of AR/VR Technology

Last but not least, AR/VR technology will also prove itself to be a great addition to the mobile app development timeline. The technology will provide users with an immersive experience and thus, help you with determining how much money can you earn through an app.

Akhil Kumar
Akhil Kumar

Co-Founder & Managing Director of AppVenturez Mobitech. An entrepreneur who is tech-savvy and aims to build the largest software business through technological innovation, keen business strategist and a passionate technocrat. He firmly believes in learning and earning by planning and performing.

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