Despite doomsday reports coming in on a loop for a few years now, the business of apps only gets stronger. So yes, without a doubt, mobile apps are still a lucrative business and will only continue to make impressive profits in 2020. With an effective product and a good monetization model, apps can tap into the increased spending power of millennials and make serious money.
While it is often said that it’s only the biggest and loudest companies like Facebook, Instagram and Google make money in apps and smaller developers hardly catch a break, the truth remains that newer apps are constantly entering the market and making big money.
The Cash App by Square for example, has earned Square a 1 billion dollar jump in revenue last year, beating the likes of Venmo and PayPal to become the top downloaded fintech app of 2018.
Before you can say the Square too is a big company, we got more examples. The app called Yo, which took creator Or Arbel just 8 hours to develop, has been a wildfire success and made an estimated $2.5 million in total revenue. Of course, a security breach led to the app’s tragic shutdown, showing us how critical it is to ensure security in an app if you’re looking for long term business.
More recently, the viral success of video sharing platform TikTok has shown the immense potential of a well-marketed, skillfully targeted app. TikTok became 2018’s most downloaded app on Apple as well as Android platforms, unseating long-reigning giants like YouTube, Instagram and Snapchat.
There are plenty of other success stories. There are some really young developers like Robert Nay who made Bubble Ball at just 14 year old, and Nick D’Aloisio who became the youngest venture capital-funded developer ever at the age 15, for his app Trimmer (Later Summly). These young developers made it big with their original ideas and sharp execution.
There is just one caveat though – you have to be good. Mobile apps have really set the benchmark high over the last few years, effectively transforming everything from communication to shopping, travel, payments and so much more. The common man’s relentless thirst to save a little more time and make things a little more easier fuels the way for developers to come up with newer, more innovative solutions that are faster, better and maybe cheaper.
Even though it seems like there is a dearth of new ideas as everything that can be invented, has been invented, there really is no limit to making things better and more efficient. And as long as you do that, your app will make money, lots of money. All you need is a product that offers true value, and the right monetization strategy. And while historically, ad revenue, in-app purchases, affiliate marketing, and direct download charges have been a big way to make money with apps, newer models like the subscription model and commission-based apps have paved new roads to the money.
After ensuring a truly engaging app that can bring in and keep users, choosing the right monetization strategy will help you maximize your revenue. So here’s a look at the most proven ways to make money from your app. Take a look at each and you can use one or a combination of more strategies to make the most money from your app.