How Much Money Can You Make From An App?
We are willing to bet that you have had at least one good idea about something in your lifetime. The moment the light bulb comes on physically gives you an adrenaline rush. Then, once details of enacting your idea are worked out, you begin to think of the long-term effects of your idea. App ideas are no different. When you have an app idea that you think will flourish, one of the long-term considerations will be what you will monetarily gain. After all, app development and maintenance aren’t exactly cheap. So, you will want to know how much you can make from an app. However, before you can find out how much you can make, you will need to learn about the different ways you can make money. Here are just a few ways you can accomplish your greatest amount of app income…
Believe it or not, your app’s revenue is partly due to the type of platform your app is built for. This is because of many factors, including the popularity of a platform within your target audience. If your target audience is comprised of mostly iOS users, then having an app that is only available on Android devices will obviously be detrimental to your app’s earnings. Releasing your app on the platform that will bring in the greatest amount of users is the first step to a flow of revenue. Can’t decide which platform is the best for your target audience? Release your app on all platforms! Now, having a multi-platform app is more expensive in terms of development and maintenance. However, multi-platform apps will extend your client base to its utmost potential and bring in the greatest amount of income.
Imagine you are shopping in an app on your device. You find a fantastic deal on an item that you have been wanting for months. So, you add the item to your shopping bag, proceed through the app’s checkout process, and then receive an “Order Confirmation” notice. You breathe a sigh of relief and content! Now, you can sleep well tonight with the satisfaction of purchasing an item you have coveted for months now.
In-app purchases are one of the biggest sources of income for app owners. Offering users a way to “beat the crowds” and have a greater in-app experience is a perfect feature for both you and your users. Charging minimal prices for in-app purchases is enticing to your users since they only see how little a $0.99 purchase will affect them. Low prices encourage purchases which will in turn benefit you. If you have 1,000 users purchasing $0.99 items per day in your app, you will gross nearly $1,000 a day! It’s true when they say, “every penny counts!”
Another huge source of income for app owners is advertisements. Partnering with local, regional, and global businesses for the purpose of running their ads within your app is beneficial to you and them. They will pay you to run their banner ads, pop-up ads, etc. to gain exposure with a larger audience. The business they receive from ads in your app will benefit them and the income you receive from contracting with these businesses will benefit you. It’s a win-win situation! So, don’t be afraid to reach out to businesses and offer them ad space within your app!
Is your app similar to a dating app? Or what about a video streaming app? If so, you are probably familiar with the concept of subscriptions. Dating apps, video streaming apps, and many others are apps that thrive on subscriptions. Subscriptions may include tiers such as $9.99 per month for basic features access, $10.99 per month for premium features access, or $29.99 per month for all-features access. When you have an app that offers so many features you realize that not everyone uses every single feature on a regular basis. So, subscriptions are a good method for weeding out unused features and helping your app to appear less busy. Additionally, subscriptions can be offered to users in different time formats. Month-to-month subscriptions are the most popular since they are presented in a monetarily manageable format. However, for those users who foresee using your app for several months or even years at a time, they may prefer multi-month or annual subscription options. Bottom line: No matter how you present subscriptions to your app users, you are opening the door to app stability. It is more than safe to say that subscriptions are a great way to guarantee a steady flow of income from your app.
Hybrid App Option
Having your app built on a hybrid option means your app can be used seamlessly between different devices. With all the tech gear we have available to us today, this is the best option for app owners and developers to choose. Think about it: If you have a video streaming app that is capable of being used on a smart TV, you are opening yourself up to a slew of users who want to use your app on their smart TVs in addition to their smartphones.
Although this method of earning money from an app isn’t common, it is worth mentioning. Sponsorship is when you approach a business or app developer that currently runs an app that is similar to yours and offers a proposal to “coexist” or partner up. This proposal usually outlines how you can tailor your app to be like theirs so that your users and their users can use the two apps interchangeably (depending on app products, features, etc.). That way both you and the other business are getting the benefits of greater exposure when your apps advertise partnership with the other. This method of income seems to be more popular with sports apps. For example, one app may offer a variety of clothing items that support a particular team or league. Then, another app may offer a variety of home décor and accessories that support the same team or league as the first app. By joining forces and become app sponsors for each other, they are eliminating the need for competition and offering a larger variety of products to fans all over the world. Like we said, sponsorship isn’t a common method of income from an app, but it does have its benefits in the right situations.
While the exact amount of money you can make from an app is completely dependent on your app’s platform, target audience, features, etc., we hope the ideas listed above will give you an image of ways you can earn income from your app. Want more ideas on earning income from an app? Give us at Gomeeki a call or send us a message and we will be happy to assist you in your app development venture. We will talk with you about what we can do for your customers and business. Contact us today!
“Smartphones and tablets are transforming how and where we consume news and information. The ABC must meet the challenge of delivering content to the audience at a time they want and on the device and format they prefer.”Mark ScottManaging Director, ABC
The Broncos evaluated numerous Fan Engagement solutions over recent years and Gomeeki's passionate & experienced team, combined with their innovative FanTribe platform was the only solution that we believe will deliver a winning mobile experience for our fans.Terry ReaderChief Commercial Officer, Brisbane Broncos NRL
“Health Partners selected Gomeeki on the basis that the services provided are far more than just an app development house. The relationship to date has delivered Health Partners the benefit of a much deeper insight into digital strategy, the power of Gomeeki’s Ubiquity platform and a disciplined, structured development process. As a customer, we have been delighted with the quality and outcomes to date.Colin LangmeadCIO- Health Partners