Show me your apps and I will tell you who you are’, said no one ever. But, let us take the liberty to modify the aphorism. People today, feel the equal amount of connection with their smartphones and applications, which they have to for their fellow humans.
In simple words, users experience the same amount of brain activity when interacting with a human or an app. That said, if utilizing or interacting with apps sounds so exciting, how about the thought of developing an app? How much money can you make from an app? Does the idea of money earning apps sound more exciting?
Now, if you, as a reader have ever come across the thought of making money through mobile apps, welcome aboard; you have arrived at the right place.
Now what exactly will this ‘right’ place has to offer?
- Numbers don’t lie: What do the stats say about mobile apps revenue?
- What are the types of existing apps and how they help you make money?
- Which is the best platform that will generate more revenue from apps?
- What are the types of apps that pigeonhole on more revenue?
Whoever told you that mobile app market is saturated and jam-packed, needs to start living out of the cave. Opportunities and circumstances to succeed are endless in the mobile app world. And, when it comes to making money through mobile apps, it is not as arduous or difficult as you might have imagined.
Mobile applications are as close as anything can get in helping you turn your idea into a thriving reality.
Right now, your mind would be gridlocked with questions from all corners of the brain. What about the costs that comes with making an app? Will I be able to build an app myself or I would need to go with a mobile application development company? How will people know about my app in the first place? What type of app should I go for in the first place? And, how am I supposed to earn money by creating an app? How much money can I actually make?
Why not answer each of these questions for you right here, right now?
Numbers don’t lie: What do the stats say about mobile apps revenue?
When you look back and try to fathom the possibility of how rapidly mobile app market has expanded, on a scale of “0” to “impossible”, it’s incomprehensible. The total number of hours individuals spend on mobile throughout the day and the percentage of millennial population spending time on Facebook is already out there in bold. We being consumers too, very well know how much time we dedicate to these smartphones and how they dictate our day-to-day activities.
So, in order to consider making apps that make you money and start earning from it, what you need to know is this:
The data predicts that the number of app downloads will rise to 258.2 billion downloads in the next 3 years.
- There is still enough space, time, and resources available for you to create one app every single till 2022 and still make giant profits.
- Or you can invest your time and effort in building an app that will shine among the billions of downloads that we see every year.
Another research says that, as of October 2018, utility apps had a 96.5 percent mobile reach among online users in the United States, preceded Web browsers at 97.3 percent.
While communication & social media based apps experience the highest number of downloads, Entertainment and Shopping based apps cover more than 90 percent of the app download market.
- This is an app gold-mine. A gold-mine known to everyone but untapped by many. Often times you will see people digging at the wrong place and hitting stones everytime.
- Knowing when to strike, where to strike, and how to strike is important.
With this, we have established the case that getting a mobile app developed to generate revenue is definitely worth it, nay it’s the best investment one can make today. The trick is to consider the money you put into app development as an investment and not as a cost.
What are the types of existing apps and how much money can you make from an app?
It is time to address all the questions bothering us since the beginning. When we talk about applications, they are not just limited to mobile. With integrated smart devices commercially available in the market today, applications as we know it have had the luck to feature in a spin-off. Smart television market is expected to register a CAGR of over 16.52 percent, during the forecast period of 2018- 2023. And, as of 2018, 70 percent of the TVs being sold around the world are smart TVs.
Currently the most popular apps being used on Smart Tvs are the key players in streaming media, Netflix and Hulu. However, if you really want to cover a large part of the market and keep your prospects open for the future.
Should I build a free app or a paid one?
Understanding the type of model you will follow and then deciding on how you are going to monetize your app is a big decision. If you fail to make a solid plan on how do you plan on earning from the mobile app, your app idea might just go in vain and keeping the app live on the store will be like beating a dead horse.
Paying within the app is proving more sustainable with time than paying for the app. And there rests the case. Research has shown that people opt for freemium model rather than paid versions of the app. People do not prefer to pay for the app before experiencing it.
As an example, Google play store’s revenue has seen an exponential growth over the years. One notable aspect of this growth is that it's being driven entirely by freemium apps — free to download, but including paid in-app purchases. And this generates 98 percent of all revenues from Android apps and games.
As an entrepreneur, one needs to understand that people are willing to invest their time, rather than money in order to try out a new app. And if users like your product, they would definitely go ahead and pay for additional services.
- It is safe to say that free apps are the way to go. Consumers today invest their time before investing money.
- Focus on providing unforgettable experiences to your customers. Do not hesitate to go all in when comes to serving your target audience. Once they feel comfortable enough, they will not hesitate to buy paid services.
Which is the best platform that will generate more revenue from money earning apps?
Now comes the time to decide on the platform. On which platform will you launch your app? Would you go for Android or iOS? And mind you, choosing the correct platform can largely affect the monetization pattern of your business.
Users behave differently on both these platforms. Android and iOS users are poles apart when it comes to behavioural pattern.
In what ways are they different?
Let’s have a head to head comparison between both the platforms and see how the compare when looked through prism.
When you are making a decision based on the purchase model of your app, between Android and iOS, market research factors like income, location, and education cannot be overlooked.
How Much Money Can You Earn By Android App
According to one poll conducted between approximately 16,000 smartphone users, Android users are 24 percent more likely to have an annual household income of $50k to $100K.
The research also says that the gap in consumer spend between iOS users and Android users is getting marginally thinner.
Android takes the clean sweep in terms of market share and has the potential to reach a much larger audience.
If we take personality into consideration, Android users are 29 percent more likely to prefer saving their money.
Brownie points:- Android users are 10 percent more likely to be men.
How Much Money Can You Earn By iOS App
iOS users are 67 percent more likely to have an annual household income of $200k or more. Talking about spends, typical iPhone user still makes more purchases than an Android user.
As opposed to Android, iOS has an audience who is more engaged and more likely to spend on hardware, software, in-app items, and accessories. Also, iOS users are 26 percent more likely to prefer spending their money when compared to its competitors.
Brownie points:- iOS users are 18 percent are more likely to be women.
- If you want to build an app that reaches a larger audience and explodes in a short span of time, Android should be your first choice. Your app might be downloaded millions of times but you cannot expect all of those users to spend some bucks for in-app purchases.
- If your idea is to build an app purely out of monetary intent and do not mind being less visible, iOS should be your preferred choice.
What are the types of apps that make you money that pigeonhole on more revenue?
Choosing the type of app is crucial when you sail out to monetize your application. It is imperative to understand what your users want and enter the market accordingly. Why do certain apps generate more money and why the others are not fortunate enough to even get noticed by the users?
A market, be it any existing system that you take into consideration, in its very fundamental level, works on emotions. Human emotions drive the foundation of any market. In this case, when we are talking about mobile apps: why will someone download a particular app and will they buy the premium services depends solely on the mood and the drive behind an individual’s emotion.
One cannot develop and publish an app simply based on the fact that the idea looks solid on paper and it has the potential to rock the market. When you are an entrepreneur who wants to run a business based on mobile application, your emotions do not matter. You need to take care of your users’ emotions, their needs, and their demands.
Doesn’t matter if you are emotionally connected with your app idea or not, if your business is not practical and doesn’t serve the purpose of solving an existing issue, chances of sustainability in the market are narrow in that case.
When you understand this spectrum, you will understand why certain app categories are successful compared to others. These apps solve the problem for the users. They provide what users demand, what users want. These apps are there to satiate their user’s fundamentally psychological needs and desires. When you touch that part of the human brain, you connect with your users. It gives birth to a sense of connection with your product.
Money earning apps categories generating the highest revenue
Why are categories important? Segmenting the apps categorically gives you a clear picture on where your current idea falls; in what category would you put your current idea or you would want to focus more on.
- Entertainment & Digital Services
This is one segment where downloads and monetization will be highest. Games, puzzles, subscription based videos, interactive content etc provide instant gratification to the users. And, as humans we have been genetically wired to react positively to instant or quick gratification.
We are social animals. We have our social circles. Sometimes, it is necessary for us to act in accordance with the society to stay socially relevant and keep up the pace. Our day-to-day life is influenced by apps that fall under this category. Utilizing apps like exercise tracker, taxi-service, cooking apps etc are a part of our daily lifestyle.
- Finance and Business
How will your users pay for premium services if the economy is weak? How can you support in strengthening the economy? Support those who are already making money, help them leverage their existing services and they will gladly give out a part of their earnings. Apps for enterprise management, payment gateways, banking, investment etc are current favorites in the market.
With Massive Open Online Courses or MOOC creating a furor in the market, a countless number of individuals have now turned towards online education. A person with zero knowledge in programming learn and grow with self-paced programs available online and land his dream job. Also, educational apps have the highest retention rate among all the other app categories.
Here are some ‘whoa! Are you even serious?’ moments
You probably know about Pokémon Go, right? It was launched in 2016 and by September 2018 surpassed $2 billion in revenue.
Instagram ads brought Facebook more than $6 billion dollars profit in 2018 itself. Let that sink. Just through ads!
The taxi hailing giant, Uber, reported that net revenue, after accounting for payments to drivers, grew 70 percent year-over-year to $2.6 billion.
Two brothers, Patrick, 28, and John, 26, turned seven lines of code into a $9.2 billion startup. What you just heard is the story of Stripe, a successful payment gateway today.
Today, Udemy is valued at $113m since the time of its initial launch. Interestingly, the top 10 Udemy instructors in the UK have made £2.2m teaching their courses.
The founders of these apps were as common and as relevant as someone who is reading this post and someone who wrote this post. Did they have a leverage? Maybe or maybe not. Just like you and me, even they had started out from scratch. Even their idea was first etched on a rough paper lying in the corner today gathering dust.
The reason they are so successful today is because they provided people with something which solved their problems and make their lives better. They provided people with something which they didn’t know they needed.
Abstract speculation to develop money earning apps
- Make sure you build an app that is more relevant to your users’ emotions and not your personal emotion.
- If you feel there is no demand for the product that you think can prove revolutionary, learn how to generate demand.
The ingredients for success are already out there. If you look closely, you may find the perfect recipe for success even. But, just the ingredients and recipe do not make the perfect dish, do they?
Ask yourself, are you a cook or a chef? A cook who takes the already existing recipe, who just adds the ingredients to prepare the dish. Or, are you a chef who innovates, one who creates something entirely new that the world is yet to see?