Over the years-long span of app development throughout the world, people always wonder on a certain aspect ” how can you make money from an app“. No matter how positive the answer is, every investment accompanies uncertainties, doubts, and questions.
Since mobile application development practice is booming, it has become a billion-dollar industry. So, if you are fascinated to inculcate a mobile app in your business vertical, undoubtedly it is safe.
But! If you are worried about how much money you will make with an app. Then you don’t need to, as the answer depends on various different aspects. So, conquer the worry with the trust and deep dive into the below aspects that can help.
How much money you can earn through money?
For earning money, your app idea should be constructed well. Actually, from the very beginning, every piece of the rock should be placed at the right location. From app development to the right marketing, everything should be done precisely. Before, you actually know the ways to earn money with an app. Here are some aspects that you need to know.
Revenues That Apps Generate
Undoubtedly, apps are big business today and a critical mean of profit for businesses. It is expected that the global market of mobile app development will reach up to $188.9billion by the year 2020. In the diverse niche of mobile apps, the higher revenue is being generated by Gaming apps. Apps like Candy Crush Saga, Epic Games’ Fortnite are on the top, with revenues of $1.3 million and $1.9 million per year, only by through in-app purchase.
Most of the applications are free to download today, though what surge the revenue for these apps. Well! in-app purchase is the aspect that is making the revenue for the business. The fact ins 98% of app revenue comes from in-app purchase options.
Majorly, the type of revenue your application makes greatly depend upon the monetization strategy. To earn more money, you have to decide on revenue streams that account for your return on investment. So, here take a look over them.
Revenues Streams For Making Money Through App
As mentioned, the app idea is always a measure to earning money through your app. It means the type of app you are going to create signifies how you are going to make money. Therefore, it is very critical decision why type of application you are going to create.
You need to perceive that your idea to earn money can change the entire point of your application. Well ! the fact is that not a great idea can bring a lot of money, you must have a great business plan. Surely, your app can entertain a large audience but if it can’t make money, there is no worth.
So, to gain higher return on investment working on different types of revenue stream is essential. This includes: Subscriptions, in-app purchases, and advertisements. All of these are the best ways to earn money, let’s dive deeper into these concepts.
1. Subscriptions
You should understand that the subscription concept is very straightforward. In this way, you charge your users for a specific period of time, such as annual, monthly and quarterly subscription. This is the most common way to incur the revenue from this stream.
The fact is that it is a great way to gain money. Incidentally, as per a recent study, the subscription-based applications gain 50% more money per user in comparison of apps having other types of in-app purchase.
Yes! it is a type of in-app purchase.
In fact, applications with subscription make two or three times more money in comparison of apps with advertisements or paid download strategy.
Though, you need to comprehend that if your app goes along with subscriptions, it is very essential to create engaging content that can keep inviting people and make them hooked with the app.
Remember that users will not be going to spend a fixed monthly fee on an application that they never use or don’t serve them quality content. Probably, some people would sign up initially on your app, but they’ll go away after a month or two if it will not serve them desired content and fails to keep them engaged.
Targeting a huge audience is probably the best way to make the most money with a subscription app. Altogether, you shouldn’t charge a huge monthly or annual fee. Besides, it is very essential to have a creative team that can improve your app and keep it relevant to subscribers.
2. Purchases
Well! everybody knows that, if your existing business includes selling of products or services, there is no best way to earn money through mobile app.
This allows you to directly provide users with the product or service. Altogether, it is a very viable way of earning money. Though, you’ve to look in your marketing, pricing, and logistics.
This leads to various complications, such as product shipping to the users buying from your app and more. Apart from these, you have to deal with all and ensure the profitability after packing, shipping, labor and any other cost associated with the app.
Providing users with intangibles like digital currency is another way to make money by in-app purchases within the app. Gaming applications are utilizing this strategy and acquiring a huge profit.
3. Advertising
Do you know about advertising through website? Similarly, in-app advertising is enabling app owners to make money. Today, this is growing as a popular way to earn money through app.
Though, this endeavor can be unsuccessful, if you fail to gather a huge user- base on your application. Therefore, it is very critical to take time researching your users. To gain money, you need to target the users with right product of service. In short, your ads must align with products and services they actually need.
So, it is very essential to tread carefully with this approach. Don’t bombard your users with too many ads, do it effectively.
Though, the question is what kind of applications can earn more for you. Here take a look on it.
Mobile App Category That Makes The Most Money
The category in which your app falls, tends to hugely impact amount you earn form your mobile app. There are numerous categories that make most of revenue such as ride-sharing apps. This category holds the capability to earn huge revenue, though the competition is high in this niche.
However, there are many others that bring huge revenue to your business. Here are those categories.
Music App
Gaming Apps
Social Media App
Business Apps
Entertainment Apps
Finance Apps
Healthcare and more.
Investing in any of these categories, and amalgamation of modern technology that can create an unanticipated user experience, can zeal up your endeavor and help you gain money.
Though, you need to understand that gathering a huge user base is a key to earn money from app. Therefore, you need to create an app with eye-pleasing & seamless UI/UX and unique functionalities. Altogether, your app must serve users with value. So, you need to hire a deft mobile app development company like Techugo, that can take up to your endeavors and bring your app idea into an incredible app solution. To know more about the ways you can earn money from an app, reach mobile app development experts.
