Earning money has become quite easy nowadays as we’ve got so many available to us. Be it using survey websites or stock market, we are breaking every possible aspect in money earning stereotypes.
Enough of us, businesses, on the other hand, are using quite a complex way to earn a fortune, which is app development.
Apps provide businesses exactly what they are looking for which is the reason why making an app has become somewhat of a primary interest of most of the companies out there. That’s not greed, it’s just the fact that nowadays mobile apps offer better profits than any venture known to us.
However, it’s not that easy to make an app and earn money with it, to be honest, it’s more complicated than it seems to be.
In this article, we’ll be discussing some of the best monetization models through which you can easily make money with apps.
But before jumping right on to the main attraction, let’s see how much money can an application earn?
Also Read: How a Mobile App helps in Increasing the Engagement of your Brand
How Much Money Does An App Can Earn?
“I’ll be a billionaire in just a matter of time”
Well, I am sorry to tell you that it’s not that easy. It’s true that mobile apps can earn you billions, but it is also a fact that only 50-60% of them have the capability to pull off such a task. The revenue earned completely depends upon the type of app and the monetization model you’ve chosen.
If you launch your app using the following models, you are most likely to earn massive revenue than any other model.
Freemium For Apps And Games
This model is being used quite extensively nowadays as app developers offer their apps free-of-charge with limited features to its name. If a user wants to access the extra features, they have to pay a fraction of an amount to do so.
Freemium model is hands down one of the most popular monetization tools for gaming apps as it is known for generating good revenue for businesses and mobile app development companies in the USA.
Paid Apps With Paid Features
Paid apps with paid features use hybrid monetization model. But the issue is; this model is opposed by most of the users out there. The reason being, users have to first pay in order to download the app, and then pay again to access premium or additional features.
Free Apps With Paid Advertising
This is quite a common model which is being by most of the app development companies out there.
There are thousands of apps available which are using this model of monetization. This model is quite helpful when your app is being used by a large number of users on a daily basis.
One-Time Paid Apps
This model requires users to pay in order to download the app and other add-on updates and features are expected to be free. Now the question is; how do you determine whether your app should be a paid or a free one?
Let me tell you that paid apps often provide the user with core functions in the first download itself, which is then followed by minor additions and design enhancements. Most utility apps fall into this category.
But that’s just not it, in order to launching a paid app instead of a free one, your app should be compelling enough for users to pay for the app without using a demo.
Advertising
Using ads for monetizing purposes is perhaps the best way to earn money with an app. you’d be surprised to know that most of the apps and developers are using this model nowadays. All you have to do is, display commercials inside your mobile app and get paid from the ad networks.
There are 3 formats available for advertising monetization model.
Interstitial ads
These are full-screen pop-ups which get displayed at regular intervals. These ads can be closed by opening the prompted page or by tapping on the close button.
Banners or display ads
These ads are mostly shown in different sizes and are stretched out at the top or bottom part of the screen. Banner ads are small so that users can interact with the app without any hassle.
In-app video ads
In-app video ads are displayed automatically. These are opened on-demand in exchange for any in-app rewards. These ads are mostly shown in gaming apps.
Sponsorship
Sponsorship is proven to be a great app monetization model if the app developer makes the app for a specific audience and launch it on behalf of another company. However, that challenge is to find a funder who has the same target audience.
The main types of sponsorship deals are:
Agreed Revenue Split generated by the app
Monthly Sponsorship Fee paid by the funder for app maintenance or use.
In-app Purchases
In-app purchases offers an app development company to sell virtual items directly from the app including extra bonuses, premium content, game currency, and unlock game levels.
This model has 3 categories to its name:
Consumable
These are the products which can be bought and used for once within the app.
Non-consumable
This featured product is purchased for permanent usage and does not expire.
Subscriptions
Subscriptions are used to unlock features and functions for a limited period of time.
The Secret behind a Successful Application
Let us ask you something. How many times have you downloaded a particular application on your mobile device? There are users who download various apps more than once.
In order to justify what we just said, let’s take up an example of Angry Birds. The app’s developer Rovio had released a free version of the app for the Android app market. And within that free version, it will also show its users an advertising bar, and that’s where the actual revenue came from.
Because of that small advertising bar, the company still manages to earn much more instead of actual sales of the app.
Which Platform Makes The Most Money?
A well-made application can increase your earning potential to a whole another level.
In the app development industry, app developers are in high demand irrespective of their exposure to mobile platforms. Speaking of platforms, you’d be surprised to know that Android apps are top-rated in market penetration. The salary package of an android developer is also higher among other developers.
But, iOS, on the other hand, is not so far away. The iOS developers also make a huge amount in a year which proves only one thing and that is Android and iOS apps have the highest number of earnings.
Top Grossing Apps of 2019-2020
2019 was dominated by apps, which is the reason why I decided to enlist top 10 apps which earned nothing but profits last year and are predicted to do the same in 2020.
Considering that Tinder topped the list of high grossing apps in 2019, you might think developing a social media app could be a good idea. To be honest, it could be, but you need know the reason behind Tinder topping that chart was appropriate app monetization model.
Final Thoughts
Would you like to kick start your business with an app? If that’s a yes then feel free to reach out to Fluper. Being a top-rated app development company and quite a reliable one, its developers and technicians would be happy to help you out in the best possible way.
