How can app revenue be influenced today?

mobile app revenue

One of the primary reasons people go through with app development is the app revenue. While there are a few
people out there looking to make a difference in the world, for the most part apps are dominated by
entrepreneurs and businesses that are looking to strike gold with a hit; which begs the question, how can I make money from app?

There is nothing wrong with that question, and quite honestly you would be viewed a bit foolishly if you
didn’t consider potential app revenue when creating a product to sell.

What affects your app revenue?

It is impossible to give you an exact number or method to quickly determine the amount of money you
can make from a mobile app; there are just too many variables. On average apps downloaded from
Apple make $0.45 per download, but how does that relate to you?

Let’s look at the factors that will affect how much money your app can make and then how that
information can be used:

  • Category: The type of app directly relates to revenue. Games are on average twice as profitable
    as any other type of app. Newsstand apps are next at just over one-and-a-half profitability.
    Below that we have sports and entertainment apps, social network, music, education,
    navigation and medical apps, all which earn anywhere from two-thirds of average to one-and-a-
    half of average. The bottom of the market that earns under two-thirds of average in descending
    order includes travel, weather, productivity, lifestyle, utilities, reference, photo and finance.
  •  Platform: Right now the iOS platform is the most lucrative with about 25% of developers
    earning $5000+ per month on average. Android, while a much larger market, does a little worse
    with about 17.5% of all developers earning $5000+ per month. Also important to note is that
    Android statistics are skewed by a few massive earners at the top so the true average is a bit
    lower. Blackberry and Windows are both black holes that aren’t worth entering; however
    between the two Windows has more upside. With Smart TVs and gaming systems having the
    option of playing apps, there is more potential in relation to their other products like Xbox One
    or the Surface.
  • In-app Ads: There is not enough concrete data yet to work with, but trends are showing that
    digital app ads are on the rise and can be a good place to make additional money on an app
    when the ad is relevant to the apps purpose.
  • In-app Purchases: Cheap but repetitive in-app purchase options can quickly increase revenue.
    Games can make 6-figures per day on in-app purchases alone.
  • Premium Model: A premium model for subscribers with additional content or features can take
    a good app that is free and turn it into a monthly revenue machine if the app is something
    people feel they must have premium access too. Skype is an excellent example.
  • Base Cost: On average free apps and those that are $1 or less have generated the most income
    per month. While apps that cost more can still make decent monthly income they need to have
    high functionality and use rates, much like a premium model, which is why many developers
    start with a free version with a premium option.

The Bottom Line

There are a lot of factors that will affect the potential revenue of an app, including the idea itself,
interface, coding, promotion of the app and luck. However we can still use the factors listed above along
with some research to create a ballpark.

To get the best idea how much money you can make from a mobile app, research potential competitors
with similar factors to your idea and then develop a statistical mean from their earnings which will allow
you to set a reasonable expectation for potential earnings.

Author Bio: Ken Braun is the founder of Lounge Lizard a digital agency that specializes in designing and developing mobile applications and responsive websites. Website Link: http://www.LoungeLizard.com

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