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How much Revenue Can You Generate Through A Mobile App?

How much Revenue Can You Generate Through A Mobile App?

Mobile apps now penetrated all recesses and facets of our living and enterprises. Naturally, they make the most profitable industry. But not all mobile apps are equally successful in terms of business and revenue. The reality is actually far from this. Only a handful of apps in every niche make global success, while the vast majority of them just struggle to survive as a business. Obviously, in between, there are still many apps that generate a pretty consistent revenue to stay afloat.

This is why it is extremely important for a mobile app development company to have a clear idea about the revenue they can expect credible sources to generate revenue. Here through the length of this post, we are going to dig in these matters and come with relevant findings of revenue generation that a mobile app development company India should consider.

Make The Basics Right

When you have a business idea for a successful app, you should start by making basics right. If you start building the app without considering how to generate revenue or how to make it work, the chances of success is very low. You need to evaluate the app idea and have a development plan to make the app work to your advantage. Only when the app idea is evaluated to be worthy you should proceed to the next step.

A whopping 63% of app users prefer an app that adds to their convenience in real life situations. So, there comes a crucial parameter. Does the app offer a credible solution to the user? Does it solve a relevant problem in the life of the user? These are the two questions that you need to encounter primarily.

The second most important thing is to consider whether the app offers an easy as well as effortless experience. Users always prefer apps that are fast in performance and efficient in delivering what the users need. Last but not least of these considerations will be the app design. You need to ensure a visually appealing design that can grab user attention easily.

When you are done with all these considerations, you need to think about commerce. First of all, which platform you should opt for at first? Or, by going beyond the Android vs iOS binary, should you build a cross-platform app? What would be the cost of development? Lastly, you need to consider how the app is going to earn revenue? Consider the pros and cons of all monetization methods and their respective merits for the app.

How Payments Are Made in the Play Store and App Store?

When you are done with the basic considerations, it’s time to dig deeper into the payment methods of the Play Store and the App Store. As for the App Store and Play Store, you don’t have any minimum threshold and it works with a ratio of 70:30 for the payment distribution between the developers and the store.

How Much Revenue Do the Apps Make?

After dealing with all aspects of revenue generation across both the App Store and the Play Store, let us ask the basic question once again. How much do the apps really make? Well, there many factors upon which the earning of your app depends upon.

  • The App Platform

The chosen OS platform for the app. Between the Play Store and the App Store, the latter wins the race. While more than one fourth if the iOS App Developers make $5,000 or more from their app, the same earning received by only 16% of the Android developers.

  • Having In-App Purchase

Apps with in-app purchase option end up earning far better than apps without this option. This strategy is particularly successful across gaming apps.

  • In-app Ads

Third-party ads make another source of revenue for apps. You can tie up with many businesses for displaying their banner ads and get revenue per click basis. It works like the websites depending on the user impressions and clicks on ads for revenue. A high volume of user acquisition and steady engagement is necessary to generate revenue through in-app ads.

  • A Subscription Model

Some apps work and earn great with monthly or yearly subscription model. You can also allow a tiered subscription model with a basic free app and feature rich premium app to get maximum acquisition and to convert the users of the free app to the premium over time. Tinder is a nice example of a subscription based revenue model with both free and premium versions.

Don’t Forget the Killers and Leg-pullers

In this respect, we must tell you that there are several factors that actually pull down the revenue earning potential of mobile apps. When you made the basics right and embraced the appropriate monetization model for your app, at the same time you need to take safeguard against these pulling factors for your app.

  • Not optimizing the app often with needed UI and UX enhancements
  • Not making the user onboarding process easier and effortless
  • Not allowing users enough autonomy and choices with personalization
  • Not showing ads contextually when it is likely to enjoy traction
  • An unbalanced freemium model without any value for the free app to try
  • Force-feeding in-app ads to make user experience suffer

What’s Next?

From the above discussion, it must be clear that making money through an app is neither an easy job nor it is as tough as walking upon the water. You need to be observant and keep treading the path that other app makers followed. While you need to follow all the above-mentioned best practices, you cannot undermine the need for being unique. Even a simple mobile app fulfilling a crucial need in every play life can become a millionaire success. The only thing that paves the way to success is what unique solution your app can provide to a really relevant problem.

Whether it is the game app or productivity app or a simple utility app, you can always make good money and run the app like a successful and standalone business. To ensure this you need to deliver the best and appropriate on every front, starting from the app idea to design and development and marketing.

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Written by Atman Rathod

Atman Rathod is the Founding Director at CMARIX InfoTech, a leading web and mobile app development company with 17+ years of experience. Having travelled to 38+ countries globally and provided more than $40m USD of software services, he is actively working with Startups, SMEs and Corporations utilizing technology to provide business transformation.

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