Back during the industrial revolution, inventing something spectacular and getting a patent for it was a sure way of making big money. Now we are in the age of information technology and building a cool app is the new form of invention.
And of course, there are billions of dollars to be made from building an app, but it has to be the right kind of app. As you may very well know, there are tons of apps in play store and i-store but only those that are truly impactful earn money while others don’t.
The Mobile App Market
Over the years, the mobile market has grown substantially. A survey in 2018 showed that mobile web traffic in the United States was about 52.2%. It also showed that digital consumption by adults was at an average of 3.6 hours on smartphones daily.
Years back, desktops, laptops and other connected devices received a large amount of time, but now they are struggling to keep up. The enormous traffic on Smartphone has inspired the fortune 500 list of companies and entrepreneurs to create apps, so they can get stakes in the billions of dollars in the mobile app industry.
Regardless of the billions apps make daily, it is extremely difficult to determine how much an app can actually make in a day; this is because of the different types of apps and the disproportion of money they produce.
Research shows that the gaming apps make around $22,250 daily, apps within the top 200 range generate $82,500 daily, apps in the top 800 range generate about $3,500 daily, while the entertainment apps generate about $3,090 daily. Therefore, it is not possible to determine how much an average app makes.
However, owning a cool app can give you revenue for life, but how do you go about creating an app and make money from it? If this is what you are thinking, FUELED can help you out on this. Fueled is an agency that produces and develops apps, they can also help you in analyzing the potential profit your app idea can make.
Platforms That Make the Most Money for App Developers
Before you design your app, you need to decide what platform or platforms you want the app to be on, because the difference in market penetration and platform popularity can greatly affect your earning potential. In the app world, there are two highly-demanded app platforms.
Because of the large market penetration of the android platform, it is well-regarded. Developers in the android platform can earn an average salary of $97,600. The Apple’s iOS platform is in the second place and developers in the apple’s iOS platform can earn an average of $96,600. When an app has proven profitability on the widely-used platform, it can be ported to other platforms to earn more profit.
Types of Revenue from Apps
This is 2020. In 2016, it was projected that revenue from the global app market will reach $188.9 billion in 2020, showing an increase of over 200% from 2016. One of the apps that generate huge revenue in April 2018 was Epic Games Fortnite, which made about $ 1.9 million in daily revenue.
This shows that the gaming apps generate much higher revenue than other apps. Free download of the gaming app is very common but when it comes to making money from the gaming app, in-app purchase is how revenue is derived and it runs in billions.
Last year, in-app purchases were predicted to reach $71,300,000,000. However, revenues coming from the free apps with in-app purchase options are up to 98%.
Subscription App Revenue
One great example of subscription apps is Tinder. It has over 50 million registered users and it’s free to download, but its unlimited swipes bonus features are at a cost; users are charged money to activate the unlimited swipes features, which gives the opportunity to march without limitation.
In the first quarter of 2018, they reported revenue of over $407.4 million. Tinder is recognized as one of the highest-grossing apps worldwide. They charge $9.99 a month for a Plus subscription and $14.99 for a Tinder Gold upgrade.
A close competitor to Tinder is Bumble. They have 50 million users and they are growing at an impressive rate of 135%. Bumble allows only women to initiate conversation on the app. They have grown to include apps for networking and finding friends.
In 2018, the app was estimated to have made $172 per minute by charging $9.99 subscription monthly option, and premium features like Boost and Superswip.
Netflix and Hulu are video-streaming apps that operate on a subscription-based method; they have made huge revenues from subscribers. Pandora and Tencent are also two of the highest earning video apps.
Other apps that are generating huge amounts in revenue are Telepathic, Inc. app Hooked. This app allows users to gain access to suspenseful stories in form of text message conversations, but requires them to subscribe weekly, monthly and annually in order to find the ending.
The Kayla Itsines’ sweat app is also a top-grossing app; it was developed by beginning app developers, Itsines and her husband. This is a great example of how successful beginning app developers can be.
The app provides subscribers with 28 minutes workouts, yoga videos and diet plans. After its release in late 2015, it quickly gained a cult-like followership, while making yearly revenue of $100 million. The couple that developed the app are worth a combine $46 million.
Beyond Mobile Phone Apps
Today’s apps have branched out from the cellular platform to integrated smart devices like Smart TVs and Smart watches. For smart TVs, Netflix, Hulu and YouTube are leading in the most popular apps integrated for smart TVs.
Smart watches are becoming more prevalent and they are predicted to reach a 51% share of wearable device sold in 2022, a notable increase from 21% in 2016.
When developing your app, it will make sense to consider optimizing your app for smart watch, TV and other third-party devices; this will give your app a competitive advantage. Companies like Google and Alexa are already working in this direction with their smart speakers optimizing for house use.
This year already as predicted in 2016, owners of home apps have skyrocketed to 125.65 million with a steady growth of third-party app purchases that surpass 1500%. Therefore, expanding your app platform offers increased exposure for your ap’[p and increases in new revenue streams.