Do you want to make money with an app? There are various revenue models, each business model has its own advantages and disadvantages. If you want to achieve success you should consider each model separately. In this article we provide an overview of the opportunities to make money with an app.

Choose an app store

Each platform has its own app store. So Apple has the App store, Android has Google Play Market and Windows has Marketplace and Windows Store. For all app stores is that there is a portion of the proceeds go to the app store. Currently, the Apple App Store and the Android Google Play Market are the best selling app stores. More than 90% of the applications are sold worldwide in this digital stores.

An average Apple user spends approximately six times more money on apps than Android users on average. However, the Android Google Play Market has more (unpaid) users and downloads. If you want to reach a larger audience than the Google Play Market is a better choice than the App Store. Of course you can also have an app developed for both app stores.

Submitting the app in the App Store

There are several options for submitting an app in the various app stores:

  • Application with a fixed selling price.
  • Free application with additional in-app (premium) purchases.
  • Free application with an additional subscription.
  • Free application with ads.

Submitting an application with a fixed selling price

Many applications are sold at a fixed price. Most apps are offered for an amount of € 0.89. In addition, there are apps sold for premium prices. In such cases they often cost € 2.50 and € 15, -. Premium apps are aimed at a niche market or a small audience with specific needs.

The starting point for submitiing a paid app (especially high-priced premium apps) is to provide an excellent product with a high added value for the user. The advantages of the application must convince the user to proceed to purchase. For example: The Alchemist SMS (Scrap Management System) application is for a whopping price of € 359.99 available in the Apple App store, but helps companies in the scrap metal industry to make significant cost savings. These potential cost savings make the app an interesting investment.

Applications like games, business applications and informative apps often provide a unique value which the user is willing to pay for. If you want to offer an app with this business model than it is good in many cases to offer a free version of the app in addition to the paid version. Using this stripped-down free version users can first get to know the app, which ideally leads to more sales of the paid version.

Free application with additional in-app purchases (Freemium)

A successful strategy for earning money with apps is the model of a free app with in-app purchases (freemium model). Because the app is offered for free it presents interest to a wider audience and the app is downloaded more frequently.

By offering additional extras (In-App Purchases) at a certain amount, the app has an excellent business model. The app is organized so that a user has to purchase the app to continue using the app.

Free application with an additional subscription.

A third way to earn money is to submit an app in a form of a free application with an additional subscription. Although this business model has proved to be quite successful, it is not widely used yet. Examples of applications with this business model include news apps, magazines and dating apps. The popular instant messaging service Whatsapp switched to this business model. To succeed with this revenue model it is important that the application remains interesting  for the user in the longer term. This can be done by adding new content (such as magazines) or offering a unique functionality or service (like Whatsapp).

Free apps with advertisements

A free app with ads is a common business model. Android users are less willing to pay for an app, even in the form of in-app purchases or subscription.

Owners of the app who choose this way get paid based on the number of clicks on the ad or on the basis of the total ads displayed.

Earning money with ads is lucrative if you want to develop an app for a large audience. After all, the more people you reach, the higher income is.

Bonus tip

In addition to choosing the right app store and the business model, you can significantly increase your sales by making your application in multiple languages. Many app owners focus solely on their country of origin and ignore other profitable markets (and potential buyers). When you make the app available in multiple languages you increase your chances for a good income. 

If you are interested in earning money with an app, DTT will be happy to discuss the possible solutions for you and your app idea. Call or mail us directly.