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Many mobile app developers have managed to amass fortunes from just one app, according to news articles. They are credited as earning millions while still in their 20s.
Although all developers may make some form of income with their app, not every developer succeeds at turning a profit from its production.
How to Develop a Profitable App
To develop an app with profit potential, first, create it. Next, you should come up with an idea people find beneficial that they'll want to download or try finding solutions to particular problems instead if none come naturally to mind.
Learning this art form could save both money and time.
1. IDEA
To achieve success when creating your app, its purpose and goals must be defined before developing any ideas for development.
Here are a few points to keep in mind when planning:
- What is the purpose of your application?
- What is the problem that it will solve?
- What is the specific purpose of this product?
- What is your target market for the app?
- What will you do to attract users to your site?
- What is the revenue model for your app?
- What is the platform you are going to use?
Outline your thoughts to visualize them better and organize your thinking process.
2. Market Research
It is essential to keep in mind that while the app economy may seem attractive, much of its money comes from certain apps rather than all apps combined.
To increase your chances of success and understand your target market better, you must conduct an extensive market research first before returning to step one and changing your original idea; continue this cycle until your concept has proven feasible and you are committed enough to continue it successfully.
3. How To Create A Wireframe
To give your ideas greater clarity, create a storyboard or wireframe of your application for maximum effect. This can be accomplished either manually, with drawings on paper, or using one of many wireframing software tools;
Picodo, Axure, and Microsoft Visio can all provide essential data when outlining how an app should look and behave; its buttons must appear and what will occur if clicked upon; these wireframes need to be tested and refined as you go along.
4. Draft Visual Elements of Your App
Once your wireframe has been approved, the next step should be designing the visual elements of your app, such as its logo, color scheme, and any graphics or animations you want to include.
Regardless of whether you opt for DIY builder services or do-it-yourself development yourself, designing its visual components - logo, color scheme, and any graphics and animations needed - must also begin at this time. High-resolution screens should result from this step based on the wireframe images you provided previously.
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5. Front End and Back End
At this stage in development, application development reaches its pinnacle. Now comes the tricky part - first, you must develop the app's backend before going forward with its development.
An app creator may prove especially handy here.
Now you are ready to design the user interface. Register an account on Google Play or Apple App Store as quickly as possible to sell your application; waiting may delay this process by several days or longer.
6. App Testing & Quality Assurance
Your final step should be testing the product itself; to do this effectively, you should test it across various devices with different people who fit within your target market and receive opinions of what's working and not.
Identify any problems before releasing your app to market and fix any that arise before release.
What Can You Earn with A Mobile App
The global mobile app market is worth billions, offering millions of opportunities for making money.
If you already own or are planning to develop one or are considering creating one, this should come as good news. However, how much you earn with an app depends upon many variables. While you might not make as much as $1 Million from it all at once - you still may make plenty of cash simply from developing it and marketing it correctly.
To do this you will first need to develop one.
If you already own one, congratulations - that is excellent news. But just because an app may not be making your money doesn't mean it can't be adjusted; whether or not your developer focuses on Apple App Store or Google Play Store could impact revenue as well.
Your app's monetization model will also affect its revenue. There are three primary strategies for mobile applications to make money:
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- in-app purchases
- Advertisements
Which app monetization models will best meet your needs? Apps don't only exist on phones anymore - an emerging market exists across devices too.
This guide covers these topics more comprehensively: learning to make money through free apps, paid apps, game apps, etc., and understanding the business side of app development will give you a solid grasp on making the most out of developing an idea or app yourself.
What Platform Makes The Most Money
In general, there are two platforms where you can build your app for Apple or Android or both simultaneously. Apple app developers tend to earn over $5,000 every month, while 16% of Android programmers make this much.
Android developers tend to enjoy more outstanding market share thanks to Google Play Store; your earnings depend on which platform is chosen first.
Android and iOS users exhibit different behavioral tendencies; therefore, when choosing an application that will best meet the needs and interests of both platforms and audiences.
Let's assume you already own an in-store shop or an ecommerce store that sells goods or both platforms simultaneously. In that instance, the type of application should reflect these behaviors as much as possible.
Consider mobile applications as another avenue for reaching both current customers and potential new markets. Android might appear like the obvious choice, with so many Android users.
But is that the wisest decision? Studies indicate iOS users tend to favor mobile shopping more than their counterparts on Android devices.
Nearly 47% of iOS users and approximately 38% of Android owners have made purchases through their smartphones in recent years, respectively.
You must decide what it is you desire before purchasing items through any means necessary - is it better to source from small populations or large portions?
As we explore different revenue streams for apps later, this idea will be elaborated upon further. However, for those considering app development but have yet to make their initial steps forward, determining your market should first come before anything else - be careful not to make assumptions that might cause you harm.
Researching who might be interested in your app is of vital importance if this is your first experience creating one.
While the task may prove arduous at times, it's worth putting forth effort into finding out who might want your creation; doing this research will save time and ensure its launch is successfully executed on all necessary platforms.
Put your app out on the proper platform to maximize profits. Another consideration should be how the app functions; no matter which platforms your mobile app was developed for, it must perform smoothly.
Say, for instance, your application has launched on Google Play: if its performance is poor due to frequent bugs and crashes, users won't have the option of purchasing in-app items from you.
If your app is already live and user experiences are subpar, taking a closer look to make sure everything runs smoothly may be worthwhile.
An unpleasant user journey could prompt users to abandon your product altogether and could lead to reduced profitability overall.
What could cause an unpleasant experience with my app? A slow app can lose users quickly. Mobile applications should load within 2 seconds for optimal usage; only 16% will attempt reloading their application if there are issues; no matter which platforms your app runs on (App Store or Google Play), its focus must remain on function quality while improving user experience to generate plenty of cash flow from users.
What Kind of Revenues Can They Generate
And How Much Will These Projections Generate? How Can Apps Earn? Much Will They Bring in Revenues? The kind of income an app generates will largely depend upon its monetization strategies - these will be discussed later in this document - in addition to audience and revenue model trends as we attempt to provide industry projections.
Mobile App development companies need a way to gauge how well your app is doing and its potential future performance, especially given that mobile games dominated global revenue in 2023 according to Statista; Netmarble Games was recently reported by this source as having generated $59.47 million on Google Play Store as revenue by September of that year alone.
In October 2023, LINE Corporation generated approximately $11,79 million in non-gaming app revenues on Android devices, Tinder, and others as leaders for non-gaming app revenue generation.
What can you do now with the information provided? As can be seen from these results, revenue varies significantly based on which app category is being utilized; top-rated games appear more profitable than others, but this doesn't imply you must create gaming apps to achieve success.
Your success may depend heavily on the successful launch for your app. Still, even without that happening, there could be money available even without going live yet if the numbers add up to success in this segment.
Take the numbers into consideration.
Even while using only one platform, industry leaders still make millions each month. Just take a look at revenue projections worldwide for mobile apps over the coming years: in 2025, global projections are more than twice that of 2023, thus showing no sign of decline over time, and industry leaders and upstart apps alike stand a good chance at profit sharing.
Read More: Using A Mobile App Can Boost Your Revenue
Types Of Revenue Streams (App Monetization Strategies)
How you plan to earn money when developing apps is one of the key decisions when selecting what kind of app will be created - making this decision will shape all future development efforts and will ultimately decide its fate.
Why does earning money matter so much when considering app types to build?
What we mean is this: A great idea could be creating a mobile app, so take all necessary steps in its production and strategize for its business strategy if needed.
An entertaining or useful app with no revenue-generation potential won't do you any good; alter its concept according to revenue streams you are interested in for optimal success.
Though some may only realize it after their app has already launched, some still may have time to adjust and fix.
Fixing issues prior to the App Store launch would likely make matters more straightforward and faster.
Apps can become profitable through subscriptions, purchases in-app, advertising, or any combination thereof - it all depends on what works for your app.
All these strategies could even be combined. Mobile apps also serve to generate revenue without charging download fees for businesses without charging download fees themselves - here are a few strategies on how you could earn from free mobile applications.
Subscriptions
A subscription is an easy concept for users to pay a set rate over an agreed-upon time. Revenue generated this way typically comes in the form of monthly and annual subscription fees; for instance, Lumosity helps train your mind through games; its app listing in Apple's App Store shows this.
While the app itself is free, different monthly fees exist for subscriptions or in-app purchase subscriptions, and in-app upgrades are charged from within its platform.
Users pay either $11.99 monthly or $79.99 annually as subscription payments to apps - an effective strategy to generate extra revenues; one study indicated that apps offering subscriptions make 50% more per user than apps using other in-app purchase methods.
Apps that rely heavily on advertisements or downloads tend to make two to three times as much profit. If your app relies on subscriptions instead, ensure the content keeps users engaged so users keep coming back.
Users will never pay for a subscription-based app that they don't find helpful, even though some people might initially sign up and subscribe.
But once unengaged after one or two months, most will cancel. Focusing your app marketing toward reaching a broad target market is critical to earning revenue with subscription-based apps.
If you think your app will attract enough subscribers, charging an outrageous monthly or annual subscription fee won't do.
What you really need are creatives working tirelessly on improving it so its content stays current with subscribers' demands - something an outrageous subscription fee wouldn't guarantee. This ensures the content doesn't become outdated quickly while keeping subscribers using the service and keeping subscribers coming back.
Purchases
A mobile app will help your business generate greater profitability. Although selling directly to users might appear like the ideal way to increase profit, you need to also take into account marketing strategy, pricing strategy, and logistics when selling directly.
Of course, shipping physical products through an app can complicate matters further. You should ensure you can still turn a profit after covering costs related to shipping, packing, and labor, as well as operating your app.
Purchases made within an application can also be accomplished with in-app purchases by offering something tangible that users can use within it, like free mobile apps and/or freemium applications that target specific audiences - a tactic employed by gaming apps in particular to generate profits.
Download this free app and earn coins through gameplay by doing certain tasks, using them to purchase items for added fun - or buy them with real cash to boost gameplay even faster.
You could even complete tasks to earn more coins. Earn money easily without incurring additional costs when giving away free coins by giving away apps. It provides an entirely different experience and could potentially generate significant income.
Advertising
Mobile app ads can be an efficient and profitable way to monetize an application - like the Weather Channel App has done successfully with ads monetization.
In order to do it effectively, however, research must first take place into your users and their needs so your advertisements align more closely. This way, you'll make more money.
Displaying ads for perfumes targeted toward female college students on devices used by male college students would be ineffective and result in no revenue generation; further, such an approach poses risks that must not overburden your users with ads that interrupt their experience.
Successful apps must appear at just the right moment - this may come across as spam; advertising provides an effective means of making money off free apps in the App Store without necessitating in-app purchases.
Users don't want to see ads when downloading an app that costs them money; ads make the experience less desirable and are best avoided altogether.
Subscription-based models could work here, too - having one version which includes advertisements within its apps as opposed to one which removes them can increase loyalty among your target demographic.
Do Free Apps Make Money
This question often arises. In a nutshell, free mobile applications can make you money. Monetizing free apps doesn't need to be complex either: any one of the strategies described can help build free mobile applications which make money through in-app sales or another approach to earning revenue monetization.
You, too, can earn with such free applications.
Future of Development
Mobile app development requires creativity. Applications don't just run on smartphones and tablets - consider this: in the US alone, there will soon be nearly 80,000,000 smart TVs installed by November 2023 in American homes.
Companies offering streaming services advertise these apps that they offer as services available in American households.
Users now have access to popular applications, including:
- You can watch videos on YouTube
- Hulu
- Netflix
- HBO Now
- Watch ESPN
- Amazon Video
Apps for consoles such as Xbox One, PlayStation 4, and Wii U; these devices all include built-in app stores. Popularity among novelty and productivity apps has grown substantially as they're easier to maintain and build; consequently, profit margins increase substantially as a result.
Monetizing Your Mobile App
In this section, we'll look at ways to monetize your app, broken into six distinct categories of monetization techniques - these categories being:
1. Paying Apps
Users of one-time-paid applications pay only once for an app and any add-ons; features are free. How can you know if paying is worth it? For most paid apps, their core functionality will already be present when downloading, followed by minor additions of features or usability improvements that add even greater utility - this category includes most utility apps.
2. Utilize Subscription Apps
As mobile subscription apps such as Netflix, Amazon Prime, and Dropbox become increasingly popular, app subscribers tend to remain loyal customers - this requires providing regular, valuable services or content and offering it at competitive pricing; otherwise, users won't continue subscribing.
To successfully utilize subscription models with success, you need a strong offering; users will continue subscribing as long as their needs continue being fulfilled by your app.
3. In-App Purchases (IAPs)
IAPs can be bought directly through mobile applications and typically provide users with exclusive content and extra features that enhance user experiences like Clash Of Clans or PUBG, for example.
According to an article, they've proven highly lucrative strategies for publishers since IAPs enhance both player engagement as well as generate additional revenues directly within an application itself. Apple has identified four categories of in-app purchases that could help an app make money.
These items allow users to navigate an application more smoothly, such as currency or in-game currencies, similar to what can be found in video games and used for purchasing items or unlocking levels.
As their names suggest, one-time-use items can only ever be utilized once:
- These are the items that you can use within an app, such as currency or in-game currencies. They are commonly found in video games and can be used to purchase new items or gain access to new levels. These items are only usable once, as their name implies.
- Items that are non-consumable do not expire after a customer has purchased them. This can be seen in the extra features of a photo-editing app. After a user purchases these features, they are available for use as long as the app is owned.
- Auto-renewable subscriptions and Non-Renewing Subscriptions are the final types. Since we have already covered these above, there is no need to go into details.
4. Advertising
According to a report for 2023, approximately $288 billion USD will be spent globally on mobile advertising. App publishers earn money through interacting with ads displayed within their apps, which have proven profitable revenue models for them.
According to the report, 65 percent of digital ad revenues will come from mobile platforms by 2023 - this includes apps, browsers and texts alike.
Mobile ads came in various forms, such as interstitials, banners, videos, native ads, text ads, natives, etc. Google AdMob could be one such platform you use; by signing up for their free account, you could place ads within your app for display advertising purposes.
5. Affiliate Marketing
Before affiliate marketing becomes profitable for you, acquiring many customers first will be necessary. Affiliate marketing is similar to sponsorship; instead of awarding advertising rights exclusively to one organization, negotiations with several interested parties could allow for placement links into your application as affiliate partners - providing another method for increasing income if one large client cannot cover all expenses incurred during production.
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Conclusion
Imunitar mobile applications can generate considerable profits; even free apps may generate income for you.
How much your app makes will depend upon its platform, type, and revenue strategy - each playing an essential part in its profitability.
Finding your way alone through creating apps may seem intimidating at first, especially if this is something new for you.
Free apps can make money. Unfortunately, though, understanding all of the technology required to develop one may prove challenging; therefore, if unsure of where and how best to invest your time or funds, consult an experienced consultant; many resources online offer guidance as well.
