With the rise of mobile phones and tablets came the introduction of a new kind of commodity, applications. Google play store was created in October 2008, while the apple store was created a few months earlier in July 2008. This saw a gradual end to mobile manufacturers that refused to create user experiences for their users. What Apple and Google understood was that people wanted choice and they wanted variety. Though Nokia could produce mobile devices of different shapes and sizes, they could not produce the user experience expected at the time. Thus, a new economy was created and it has continued to evolve. In this article, we will discuss how to make money with mobile apps in 2020.
Dive deep into the Mobile Apps Industry: How to Make Money with Mobile Apps?
As of 2018, Apple had 20 million developers catering to 500 million weekly visitors to the app store. There are more than 5 billion mobile phone users which are all potential app users. Despite the vast number of users, it is not easy to make money in the app industry. In 2016, the top 200 applications generated average daily revenue of $82,500 while the top 800 apps generated $3,500 daily. This is in a marketplace with more than 2.8 million applications.
Google Playstore has 2.8 million applications.
Apple’s Appstore has more than 2.2 million applications.
Clearly the app stores are very competitive and making money this way is difficult. So how do developers make money with applications? The reality is, no actual way of making money is easy, you simply need the right training and preparation before you go and get started.
Disclaimer: I am not an application developer, I do purchase applications, get them revamped and then market them for income.
How to make money with mobile apps: Creating apps for android
For the sake of this post, we will discuss Android Apps in particular.
There are several ways to monetize your Android application. The most common methods are ads, in-app purchases, one-time sales, subscriptions, and selling the apps. Whichever method you go for, be prepared to market your application heavily. No, Let’s dive into how to make money creating apps for android:
Ads, this is the question to the age-old question, how do free apps make money? Most free applications generate an income by showing ads from different platforms most commonly Google Admob.
How it works:
When you develop your application (in my case, when I get someone to develop the app for me), you need to sign into Admob using your Gmail account. You get a code and enter the code into your application. Some verification is required by Google; however, you will now be able to show ads. Visit this link to learn more: https://support.google.com/admob/answer/7356092?hl=en
When you use this option, there are two methods that define how much you get paid, either, pay per click or per 1000 impressions. This means, the more the users you have, the more money you get and the more targeted the ads are the better chance you will get people clicking on them and in turn you will get more revenue.
Does this method work?
Yes, I personally use ads to monetize the majority of the applications I operate. This method works and is highly effective. Simply put, people are more likely to download a free application, this means you can get more users viewing ads. Some applications take it a step further by rewarding users to click on ads and for viewing video ads.
2. In-App Purchases
Another very popular method of monetization for free applications and even some paid applications are in-app purchases. This is when you sell additional features, such as skins, game currency, audio files, filters and more in the application.
How it works
Free apps allow users to play the entire game free of charge, whilst applications with in-app purchases allow you to use the app with limited functionality. Either, your character is weak or you are unable to modify them if it is a game. If it is a video editing tool, you can use 5 audio files for free, if you want to add on a premium track you need to buy-in.
Applications that monetize through in-app purchases usually get people to use them for free, thus building some sort of trust in the developer and addiction to the game. Once you reach a certain stage, it becomes impossible to get better, beat that enemy or develop videos with stunning visuals and new music. People are more likely to pay for the additional functionality as they know, like and trust you.
Does this method work?
Yes, many applications earn a significant amount of revenue from loyal users willing to spend more money to fully experience features in your applications. If you are willing to continue developing features and maintain a great quality app that offers amazing user experiences, you will make loads of cash.
3. One-time Sales
Paid applications are popular in both the Play Store and Appstore. Simply said, these applications charge a one-time fee for you to download and own the application. I have purchased a few valuable applications myself, especially in the Appstore.
How it works
Paid applications are usually powerful tools that offer specific features that the users need. This business model allows people to pay a one-time fee for an application they deem necessary and have access to use it forever. Some apps also offer a subscription fee that allows users to get 24-hour support for a year, updates and other features.
Does this method work?
As a method of earning income, paid apps may be the worst. You have almost zero returning clients because they specifically want the application. You make money when the user pays for it and never make a penny from the same user again. Yes, you can make a decent amount of money, however, the business will die eventually as revenue sources run out.
Some application developer tends to change their business model from one-time sales to subscription and force this on even current customers out of greed and a desire to make more money when they notice the app is a success. This can lead to clients getting annoyed and boycotting the business. In short, pick a model and stick to it, no one pays for flip-flopping businesses.
Subscription-based applications offer a service for a monthly or annual fee. These applications provide something unique that their users cannot live without. In order to keep their clients loyal, they tend to offer additional value such as customer support, regular updates, tips and tricks, and more.
How it works
Subscription-based applications will usually offer a free version that has limited features. They then offer a paid subscription that is affordable and give additional useful features. You will need an automated billing system, usually handled by the play store or apple store.
Does this method work
Yes, with any business, the one that can guarantee repeated and consistent revenue is the best. This is why most businesses including Apple, Netflix and more, offer monthly subscription-based services. As a result, we strongly recommend this model if you have a viable product or service.
About SNCT Marketing: Make Money with Mobile Apps
SNCT Marketing is a digital marketing agency based in Kampala, Uganda. We provide a wide range of marketing services and educational programs to help take our clients to the next level. Our services include website design, copywriting, SEO, graphic design, and more. Our educational programs are both digital and live. We pride ourselves in offering our students the best learning experience.
Conclusion: Make Money with Mobile Apps
Being a mobile app developer can be very lucrative even if you have a small team or are working alone. The above methods are stated for developers that want to manage their apps for consistent revenue. If you are only interested in making money by developing the applications and selling them, check out the link below where we will walk you through some platforms that will allow you to sell your applications to other people online. You may be interested in other business models that can generate an income for you online