This topic has been discussed from ages, maybe right from when apps started to exist. Each article has been crafted so that it can provide you with different information. We at Vyrazu Labs have developed a lot of apps and our business analyst often discusses how those apps will make money with our clients, even though all the developers follow the same work follow what makes apps successful and what are the causes of failure.
In an era when apps are ruling the market and devices are changing its features to make it app compatible, the question remains how much money can you make from an app? The answer is 188.9 billion dollars as forecasted by the market for 2020. On the contrary, the figures might change as it could increase with the introduction of more apps. You might know by now that all apps are not capable of generating the same quantity of revenue, that is the reason if you are down for business you should know which app or apps will provide you with revenue that will profit you in the long-term.
While I was discussing devices changing for app compatibility I meant the introduction of Smart TVs, Watches (Wearables), smart cars, smart home appliances, etc. changing so that some apps can be easily accessed from these devices. This integration will pull in external revenues. On the contrary free apps generates 98.01% app revenue collectively. There are various techniques on how free apps make money and how much money can you earn from an app is directly proportional to this subject.
This does not mean only free apps make money. Even web apps and paid apps make good revenue. The three areas have a different focus of work targeting their individual customers, thinking about the utility of the app. These audiences are the ones who feed these apps with money for using or accessing the special features of the app. These can be premium features or facilities that can be accessed by making a payment.
Before determining how much money can you make from an app you must know which app will produce a better revenue when it comes to mobile apps and web apps. In the case of web apps, the payment is quite subtle as those applications ask for subscription fees or subscription after trial.
Apps like Netflix and Amazon Prime are suited examples, even YouTube has also introduced a similar feature which supports premium features. Other payment areas like offering premium features, varied functionalities, etc are offered as well. Late payment of these fees might terminate the use of the application temporarily or disable some features that will only work after the payment is made.
When the choice is between web apps and mobile apps it must be cleared that in case of web apps it is right there in the web browsers, even without advertising these apps it might find its way through a search initiated by the customer but mobile apps have to be marketed. When a person is using a web app they know about other web apps via ads, banners, or flyers that such a service exists. But for a mobile app even though it is available in the online stores the users are inclined towards checking out the user opinion-based reviews, ratings, comments, etc to determine if the app is downloadable or not.
It’s a fact that almost 62- 94 apps are installed on any given smartphone. While most of the population uses 26 apps per month 95% is divided between 9-10 apps. So if an average of 62 – 94 apps are downloaded in a phone only two-thirds i.e. 75% is used only once maybe twice then that app loses its function and stays like a shadow on the users’ phone.
Did you know that average American checks their phone every 11 minutes? Statistics say that 9.56% of the population checks their phones every four minutes and 80.79% of apps are accessed for use or just passing time. So when you are launching an app you must keep in mind certain things that will help your app survive the rush.
The app has to be launched in the market first, then you can make a revenue out of it. The development process is very crucial as depending on this your app will be able to take on the market. Before understanding how much money can you make from an app you must clear out what are things you will have to follow while developing the app. This process will also include designing the app, its infographics, logo and other essentials that will determine the utility of the app.
How much money can you make from an app will depend on these development and design features:
So, you have to be very selective about the features that you choose, the features will push traffic in your app along with the planning mentioned above. You can draw an example of what features you can include from how to make an Airbnb clone app. The UI/UX design that you choose must be discreet. The design of the application will attract your audience.
The platform that you choose will depend on your target audience for which you will have to conduct market research on the device that your audience uses. However, it is only right if you also consider the facts and revenue models (will get back to this under the next subhead) that both the stores provide. The cumulative will help you understand which platform will make you the gainer.
Before starting the development process having an idea of which app will be profitable so you will have to choose between web apps and mobile apps. Now, you have an app either web or mobile with appropriate features, good design, and a platform you will launch the app in.
The only thing that is left to integrate is payment options. As many payment options, you provide more it will work as a support system. With so many options like Google Pay, Apple Pay, PayPal, etc. It is difficult to know which one your target audience is using. Hence, just add more options so that they can choose and make the payment.
Introducing the subscription model will allow you to draw a certain amount from your users each month as a fixed price for the app. There might be different revenue models for different packages. Like the normal package will cost a minimum amount with the HD and Ultra HD feature it will increase differently.
If you think about tying up with a company that might be your partner or individual companies opting for sponsorship will add into your revenue buildup. There will be other companies or apps who will provide you with paid ads which will also add up to your revenue chart.
Here comes an interesting fact. Apple and Google, two super-powers have been arch enemies in terms of business until facebook joined the fight. However, for building a mobile app you will need an idea about which is the most relevant area for launching your app. You will definitely have to go through market research involving surveys and interviews to recognize your market for establishing your work. On the other hand, paying a close visit to the revenue system will offer you great assistance. Before we can move on to how much money you can make from an app we will critically analyze what both the platforms are offering.
When you go to the developers they will ask you which platform will you choose for your app, you can opt one or select both. When it comes to both the options the rates become higher but your product gets a huge operation space, depending on its utility that is. If your app is based on users who only use iOS then it will be useless for your app to have launched in both the platforms.
According to Forbes Google sold 900 million devices while Apple only managed to sell 600 million back in 2013. This clears out that there are more Android devices in the market than that of apple. There are 1.96 million apps ready for download in the Apple store whereas, 2.46 million apps in Google Play store according to statista 2019 reading. However, these are not separate apps, some of the apps are present in both Google Play and App Stores.
It is evident that Android has a bigger market than Apple. Among all the apps Google and Apple have, the statistics of the downloading apps- Google has increased by 14.67% whereas the download rate for Apple only increased by 3.43%.
For your better understanding evaluation of which platform has what kind of revenue system we have made a comparison which looks something like this:
Google has the policy to pay the app owners within 30 working days. There is no such limit of payment, it is said that if your app makes more than a dollar it will be transferred to your bank account with Google keeping 30% of the revenue giving away the rest to the rightful owners.
If we consider the types of apps that were downloaded the most in 2018-19 you will see apps like tools, communication, video players and editors, productivity, music apps, entertainment, news apps travel and local apps, have the maximum download rate. While apps like education, finance and lastly health were downloaded least.
In the case of the Apple store, it can be said that within the last 45 days the sum will be credited in your account. You will have to submit the necessary documents through which the transaction can be made.In the Apple Store, the apps that fall under the category of games, business, education, and lifestyle are leading the graph.
Whereas the least downloaded apps are social media, news apps, and medical apps. It is noted that when compared to Google, Apple has almost double paid apps in the Apple store. This does not mean that Google is not the right area for launching your app considering free apps generate more revenue.
From this comparison, we figured that Android has a bigger market. A secret? Android development is easier and less time consuming than that of Apple. Apple apps are definitely better in terms of quality as android is unable to store the entire app in a smaller configuration. So if you are building an app that has high-quality images and a larger configuration you should choose a high-definition device or iOS devices.
Alright, we have come down to the area where I can freely talk about the other methods using which you will be able to earn money even without relying on the payment that you are receiving each month from the store(s). When it comes to revenue generation you should know the right places to scoop it from.
Here are the four obvious ways by which you will be able to earn something more:
The in-app advertisements can be provided by the companies who are willing to post their ads in your app there will also be other app owners who will show interest in posting advertisements. These ads will facilitate in understanding how much money can you make from an app.
If you have an app that is open to in-app purchasable items it will rather be the best option. You can provide your user with something special that they would like to access but that will be under the trajectory of a small payment. Like the gaming apps have numerous premium features that t you can’t use until you are making the payment asked for.
Sponsorship is something that is least used in the app development industry. To get a sponsorship you will have to search out such a company or individual who has a similar app like you with a similar target audience. You will have to approach them with the idea of redesigning your app according to them. That will help increase traffic in both the apps. Selling your idea is a different matter altogether- Remember what happened with Instagram? It is bought by facebook losing all its individual rights. (just saying)
In the case of freemiums, you launch an app that is usable but has a limited set of functions. Have you ever downloaded an app that helps you enhance your memory? If you did you might have noticed there are only some tests and trails accessible to the public making the other better features or functions kept aside for paid users only. It is the same for other apps that provide freemiums.
Other details you might want to know
A general comparison was done to see which category apps best do business and it was noted that maps, messaging and music apps acquire 96% download rate whereas weather, games and social networking apps attained 84%, 81%, and 70% respectively. The least visited areas are sports (34.23%), portals (19.08%) and politics (5.07%). It has been seen that there was a 15% increase in the rate of downloads like every year.
* These statistics are based on 2019 readings.
Leaving out the youngsters who are thought to spend most of their time on their smartphones or devices, it is also seen that the population of the other age groups like 24-35 spent two hours 40 minutes regularly on their phones using some kind of apps while users aged 44-55 spent two hours on apps and the population with age 64 and above use apps at least for one hour 40 minutes. These statistics will help you determine how much money can you make from an app.
I hope this article helped you to get answers to a lot of questions like how much money can you make from an app, which platform is best for launching the app, which age group should you target for the type of app that is in your mind, etc. If there is something else that you think I have left out please leave a comment so that I can add that point in this article. You can also leave feedback on this article, as a writer always appreciates its critics.
If you are starting with your online business and you are searching for developers, well dig in we have one of the finest developers and designers that will amaze you. If you have business-related questions or issues, you can directly ask us as we provided startup advice and give out the best ways to establish a business that will have a good influence on the market. You can also check out how 5G technology will help you increase your business, for getting an idea of 5G and why you should use it from the initial stages.