How to Create an App and Make Money | Earn Money by Create an App

How to Create an App and Make Money

Earn Money by Create an App

Apps are extremely profitable. According to Sensor Tower data, spending on Google Play and the App Store totaled $39.7 billion in the first half of 2019. This was a 15.4 percent increase over the previous year's same period.

App usage is also on the rise. According to AppAnnie's most recent "State of Mobile" report, time spent in-app increased by 50% between 2016 and 2018, while downloads increased by 35%. This indicates that there are numerous opportunities for people who want to create an app and profit from it.

If you want to try to break into the mobile app market, you've come to the right place. In this article, we'll go over how to make an app and then look at six of the most common ways to monetize it.

Table of Content

1 How to Make a Mobile App

1.1 First and foremost, you must plan your app.

1.2 Next, decide how you'll construct your app.

1.3 If you decide to go it alone, you should begin by wireframing.

1.4 Next, create your app's visual elements.

1.5 Organize the Back End and Front End of Your App

1.6 Finally, run final tests on your app.

2 How to Make Money by Making an App

2.1 What Cut Do App Markets Take Before We Get Started?

Three Approaches to App Monetization

3. Offer Your App for Sale

3.2 Get Repeat Payments by Using a Subscription

3.3 In-app Purchases Have the Potential to Be Very Profitable

3.4 Adopt a model based on advertising.

Earnings from Affiliate Marketing: 3.5

3.6 Employ a Combination Approach

4 Final Words

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How to Create an App

The first step in making money with an app is to create one. This means you'll need a great concept that people will want to download. If you don't have a specific app idea, you can always think of a problem you're having and a solution.

Are there any popular apps that you enjoy but believe could be bettered? If that's the case, why don't you make an app that incorporates the changes?

Instagram was created in part because the founders of Instamatic liked the filters but thought it would be better if it was easier to share photos. It's now one of the most popular apps of all time.

If you want to make money off of your app, you should think about it from the beginning. If you want to monetize your app with ads, for example, you'll need to design space for banners when you're designing it.

Similarly, if you want to run a subscription, you'll need to think about which features are available to all users and which are only available to those who pay.

 

You can read an in-depth article on how to create your own mobile app here. We broke down the process into several steps in the article:

First, You Need  to Plan Your App

This may be the simplest part of the process if you already have an idea. If not, the most difficult. If you're having trouble coming up with app ideas, take a look at these 12 methods.

You'll need a clear idea of what your app will do and how it will solve a problem when you're planning it. You should also consider your target audience and what they will find appealing. Looking at competitors or non-competing apps with the same target audience can give you some good ideas about the type of app that is successful.

This is a good way to pick a monetization strategy as well. If you notice that most apps like the one you want to make are free, you'll probably have a hard time making money if you want to charge for it. On the other hand, this could indicate that the type of app you want to make can be supported by advertisements.

Next, Choose how You Will Build Your App

After you've planned out your app, it's time to get to work on it. Here you have two choices. The first is to go through the entire process of creating wireframes, graphical interfaces, and front-end and back-end testing on your own. Alternatively, you can hire an app developer to handle the process for you.

While the first option allows for more customization, the second option is more user-friendly for those who are new to app development.

If You Choose to go it Alone, You’ll Need to Start by Wireframing.

If you go the custom route, you must start with wireframing. This will aid in the development of your app's structure. Wireframing can be done with a variety of tools, including Microsoft Visio and Axure. Make sure to thoroughly test these wireframes.

Then Design the Visual Elements of Your App

You can now start designing your app's visual elements, such as your logo, color scheme, and any graphics or animations you want to use.

Whether you build it yourself or use a DIY app builder, you'll need to do this. If you lack the necessary expertise, you can always hire a professional to complete the task for you. Upwork and other similar sites are excellent for this.

Sort out Your App’s Back end and Front  end

Things start to get complicated in the next step. To begin, you'll need to create the app's back end. If you get this right, your app will function properly. If you don't have much experience with software development, an app builder can save you a lot of time and stress.

Following that, you can create the front end, which is the user interface.

Finally, Put Your App Through Final Tests

While you should test your app as you develop it, the final step is to test the completed product.

 

You should test the app on a variety of devices and distribute it to a variety of people who fit your target demographic. This will allow you to gather a wide range of viewpoints on what works and what doesn't.

If you find any issues, make sure to address them before releasing your app.

How to Create an App and Make Money

We'll look at how to monetize your app now that you know how to make one. We've divided monetization methods into six categories in this article. These are the following:

·        Apps that Cost Money

·        Subscription

·        Purchases Made Within the App

·        Advertising

·        Affiliate Marketing

·        Mixed-Methods Monetization

The best way to make money with an app depends on the type of app you make. In-app purchases are common in games. Many software as a service apps, on the other hand, make a lot of money through subscription programs. You can also monetize your app with advertisements.

The good news is that no matter which monetization method you choose, there are plenty of examples of successful apps.

Before we start what cut do app markets take?

A major factor to consider when determining the price of your app is how much the app marketplace you choose to distribute it on charges. The pricing structures of Google Play and the App Store are very similar. Here's a look at some of them.

Google Play

·        All apps and in-app purchases on Google Play receive a 30% discount.

·        For the first 12 months of a customer's subscription, it takes 30% of all subscriptions. After that, only 15% is required.

·        To create a Google Play developer account, developers must pay a one-time fee of $25.

Apple App Store

·        All apps and in-app purchases are subject to a 30% cut from Apple.

·        After a customer has subscribed for 12 months, this drops to 15%, just like Google.

·        To publish apps on the App Store, developers must pay a $99 annual fee.

Six Ways to Monetize an App

Here are six different ways to make money with your app.

Sell Your App

Making a paid app is perhaps the most straightforward way to profit from your app. All you have to do is create an app and monetize users who download it. Users can easily pay for apps on both Google Play and the App Store, so you have a ready-made audience.

Being successful, on the other hand, can be difficult.

You'll need to provide a lot of value if you want people to download your paid app. It can help if you already have an audience to whom you can market your app or if you have a budget to devote to app promotion.

You'll also need to put a lot of effort into your app store listing, as you'll need to give people a good idea of what your app is like without allowing them to try it out.

There are numerous factors to consider when pricing your app.

Examine the average price of similar apps to determine how much you can charge. If you want to use advertising to get people to buy your app, you'll need to figure out how much it will cost to get one person to download it.

As you can see in this screenshot, the majority of paid apps are inexpensive. Most of the top paid apps in the UK are under £5, with only two in the top 21 costs more than £10. Site Audit Pro and FL Studio Mobile are the two applications in question.

Things to Consider

While paid apps can be a good way to monetize your app, they can also be restrictive. To begin with, there is no way for people to test your service. This may serve as a deterrent to them downloading your product. This is especially true if your brand is unfamiliar, as you may find it difficult to persuade people to pay for your app.

A slight workaround could be to make your app free to download and then charge customers a one-time fee to unlock the entire app. Although, because the user isn't paying to download the app, this counts as an in-app purchase on both Google Play and the App Store.

Overall, you may discover that other monetization methods are more effective. According to AppAnnie, the most popular paid app in the United States on July 3 was Minecraft. It was, however, only the 29th most popular app overall. Heads Up are the second highest-grossing paid app, but it isn't even in the top 50.

If you want to increase app revenue, subscriptions, or in-app purchases might be a better option than charging users to download your app.

Use a Subscription to get Repeat Payments

When developers charge users a recurring fee to use an app, this is known as a subscription. The fee is usually charged monthly, but developers can offer users the option of paying in advance for a longer period of time—for example, yearly or quarterly—in exchange for a discount.

This is a common method of monetization for apps that provide software as a service or media access. Consider apps like Spotify or Netflix for streaming, or Microsoft Office or Dropbox for productivity.

App developers benefit from subscriptions because they can earn a consistent recurring income from the people who use their apps. It is also beneficial to users because the monthly fee is usually low.

Subscription apps, unlike paid apps, are usually free to download. This is a good way for developers to build a user base. It will also look good on the App Store and Google Play if you have a large number of downloads.

It is common for developers to offer a free trial to entice people to use their service. This will allow them to get an idea of what the app is about and how it can benefit them. Alternatively, subscription-based apps can provide a free basic tier with limited functionality, followed by a paid tier with full functionality.

Medium is a good example of an app that does this, as it provides users with a monthly limit of premium articles as well as access to the site's free articles. Users who want full access to the service must pay a monthly fee of $5 or a yearly fee of $50.

This is a good way to keep people interested who don't want to sign up for the subscription right now but might be persuaded to do so later.

It's even possible to offer multiple pricing layers on top of that. There could be a free layer, a low-cost layer with some extra features, and a premium layer that contains everything, for example.

Airtable, a productivity app, allows users to use it for free. There is also a $10 per month Plus version, a $20 per month Pro version, and an enterprise version with custom pricing.

non-renewing subscriptions are a different type of subscription to consider. These subscriptions allow you to access content for a set period of time. During a global event, for example, an app could provide access to seasonal content.

What to Consider When Monetizing Your App With Subscriptions

Subscriptions are a great way for an app to generate consistent revenue. However, your product must provide sufficient value for users to be willing to pay for it.

You won't be able to make money from people who use your service for free, unlike with advertising-based monetization methods. It is possible, however, to display advertisements on the free version of your product and then remove them once the user signs up for a subscription.

In-app Purchases Can be Highly Lucrative

One of the most effective ways to monetize an app is through in-app purchases. There are four types of in-purchase, according to Apple:

·        Consumables are items that can be used within the app, such as in-game points or currencies. These are common in video games, and they allow players to purchase new items or advance to new levels. These items can only be used once, as the name implies.

Pokemon Go is a game that has had a lot of success with consumables. Users purchase Pokecoins in the game, which can then be used to purchase various in-game items. According to reports from earlier this year, Niantic has made $2.3 billion from the game.

·        Non-consumable items are those that do not expire after being purchased by a consumer. Extra options in a photo editing app are an example of this. Users can keep these items for as long as they own the app after purchasing them.

·        Subscriptions, both auto-renewable and non-renewable, are the final two types of in-app purchases. We won't go into detail on these because we already covered subscriptions.

The advantage of in-app purchases is that there is virtually no limit to how much money can be spent. Paid apps with a one-time fee or subscriptions with a recurring fee are severely limited in their total revenue per user.

In-app purchases in games can be extremely profitable. In-app purchases are frequently used in games to allow users to purchase items to enhance their gaming experience. As a result, free games like PUBG, Clash of Clans, and Pokemon Go are consistently among the most popular apps.

In-app purchases can be useful in a variety of applications, not just games. Photo editor apps that offer additional options or filters, as well as messaging apps that allow users to purchase emoticons or gifts are examples of apps that successfully offer in-app purchases.

Kakao Talk, for example, is one of the most popular messaging apps in the world. While it is completely free to use, it makes money by selling emoticons that users can use in their chats.

What to Consider When Monetizing Your app With In-app Purchases

The most important factor to consider is whether your app can provide a compelling enough in-app purchase. If you can't, it's unlikely that anyone will want to buy your product. In-app purchases have proven to be a huge success for games in general.

Another important factor to consider is the ongoing debate over loot boxes. Users can purchase Look Boxes, which provides them with a random selection of in-game items. Many countries are debating whether these are a form of gambling, despite the fact that they are an effective monetization tool.

As a result, loot boxes are heavily regulated, and in some countries, they are even illegal. If you want to sell this type of item, make sure to check the regulations of the country where you plan to do business.

Use an advertising-based model

Mobile advertising is a multibillion-dollar industry. According to the Interactive Advertising Bureau (IAB), mobile platforms accounted for 65 percent of all digital advertising revenue in 2018. Apps, as well as browsers and text messages, fall into this category.

Apps that provide users with free content frequently use advertising. Apps for news or games, for example. It can also be used to monetize non-paying customers by apps that offer in-app purchases or paid versions.

The best part about advertising is that it allows you to make money from your app without having to charge your customers anything.

A cost-per-click advertising platform is the simplest way to get started. Google's AdMob and AOL's SSP are two examples. After you've signed up for one of these, you'll be able to start putting ads in your app.

Banner ads, interstitial ads, and videos are the most common types of ads.

·        Banner ads are strewn throughout your content. They are relatively unobtrusive, which has the benefit of not interfering with the user's experience, but they are also easy to overlook.

You can see how the podcast app BeyondPod uses a banner ad within the user's podcast feed in the screenshot below. It's almost too unobtrusive to notice, and it's easy to overlook.

YouTube, on the other hand, displays much larger banner ads that blend in with the content the user is already viewing. It would be difficult to tell if the recommendation was an advertisement or not if it didn't say "Ad" in the bottom corner.

·        The entire screen is taken up by interstitial ads. They are typically displayed for a set period of time or until the user chooses to close the ad. These ads are effective because the user is almost certain to see them.

The disadvantage is that they are extremely intrusive. As a result, you should consider carefully when placing an interstitial ad. When the user has finished editing a photo or is about to begin a new level in a game, these are good times.

The video editing app PowerDirector's advertisement below is a great example of this. When the user clicks to exit the app, a pop-up window with an advertisement appears. Because the user must take another step to exit the app, the advertisement is nearly impossible to ignore.

It isn't too bothersome, though, because it only appears when the user is exiting the app, not in the middle of a project.

·        Short or longer video ads that the user can skip after a certain amount of time are common. The user will be taken to the advertiser's product after clicking on the advertisement. Advertisers benefit from video ads because they are an effective way to communicate a product's message.

Video ads are frequently displayed while another video is loading or before a game level. YouTube is perhaps the most well-known app for video advertisements, as many of the service's videos begin with a commercial.

Things to Consider When Monetizing Your app With Advertising

While mobile ads are simple to set up, they do have some drawbacks. The most obvious is that if you want to make a lot of money, you'll need a lot of users.

According to Businessofapps.com, the average CPM (amount paid per thousand people who see an advertisement) for banner ads is $1, $3.5 for interstitial ads, and $3 for video ads.

This means that it's difficult to earn money from an app unless it has a large number of regular users.

Another thing to keep in mind is that when a user clicks on an advertisement in your app, they will be redirected away from it. This will cut down on the time they spend on your app and may even lead them to a direct competitor.

Earn Through Affiliate Marketing

Affiliate marketing is a popular form of online marketing, though it's less common in mobile apps. The app developer will advertise products on their app and then take a cut of the sale when a customer makes a purchase using affiliate marketing.

Affiliate marketing is common in the form of booking or comparison apps. People looking to buy a flight, for example, can use Skyscanner to compare prices from a variety of sources.

When a user books a flight after being redirected to the booking website through Skyscanner, the company receives a percentage of the cost of the flight. In the screenshot below, you can see how it works.

Another example would be a fitness app that directs users to a nutrition store or exercise equipment store's website and then takes a cut of any sales made. Or a financial planning app that makes recommendations to its users about financial products.

The benefit of monetizing apps in this way is the amount of information they have about their users. In the case of the financial planning app mentioned above, the app developers can offer the exact type of product that the user will find useful based on the information they have about the user.

Things to Consider When Monetizing Your app With Affiliate Marketing

Affiliate marketing has many of the same problems as advertising in that it needs a large number of users to be profitable.

It can also help if the product you're promoting is expensive or offers a significant discount on the total cost of the purchase. Although 10% of a £1,000 flight can get you a good payday, getting 3% of a £50 pair of running shoes will be less impressive.

Use a Mixed Strategy

Many of the most popular apps make use of a variety of revenue models. This eliminates the need for developers to rely on a single strategy. Here are some real-world examples of how mixed-monetization strategies might work.

·        Asking users to pay to remove ads is a common mixed monetization strategy. As an alternative to a paid app, this is a good option. It means that app developers can still monetize free users while also providing a more lucrative option for those who can afford to pay. You can even include some extras for those who pay to make the paid option more appealing. This could work for both one-time and recurring payments.

·        Some paid apps, particularly games, charge a one-time fee for the app and then add in-app purchases on top of that. Minecraft, NBA 2K19 and the Moment Pro Camera are all examples of apps that have used this strategy successfully.

·        If you plan to rely on advertisements for monetization, it might be a good idea to try both affiliate marketing and traditional advertisements. If you do this, you can determine which type of advertising is the most profitable and concentrate your efforts there.

Wrapping Up

This concludes our tutorial on how to make money with an app. I hope you found it helpful.

As you can see, there are a variety of ways to make money with your app. Because of the potential for recurring income, in-app purchases and subscriptions can be extremely profitable. Many apps, on the other hand, can successfully monetize through other methods such as advertising or charging the user up front.