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How Much Money Can You Earn Through an App?


Having your own application is one of the most common things. Every other business owner or a company owns its own app these days. Apps can be developed for very smaller to very larger businesses.

There are many young people out there in the field who are desperately working hard to earn money. Everyone hopes that they will earn from the digital medium as they have these apps running online.

Mobile Application is the best way to start your business online and earn through it. Like for the business owner they can increase their audiences through these applications. Well, this provides the business owners a big platform to showcase what they do offline.

Creating an app for making money

Creating app for making money, one should know the perspective behind it. There are many bigger platforms available and if you think that you can create the next big hit, like Instagram, Facebook, Twitter or Snapchat than you should be totally up for creating an application.

Well, it’s not a thing like you started a mobile application and you will start making money from it instantly. The money-making part will take time after the application is published. Well, you need to find the key to choose what kind of a perfect application your users need and they peek their interest in.

Getting an application developed in order to publish it is the first step and it could be expensive as you will come across the hidden development cost along the way. So before investing your money in a new idea, you should be making sure that generates you some profit out of it.

The money will not automatically come to you if you start a business it’s the Virtual Reality. Well going in the right place to get the right amount of knowledge about the application industry can help you move towards the right direction.

Mobile App Development Industry has a huge potential to earn billion or millions of dollars. Well, there are many factors which decide that “how much money can you make from an app?” which we will discuss.

Mobile App Development Industry

According to the statistics people in today’s world use mobile phones in which 80-90%of the time they use mobile applications. Well if your consumers love to use the applications then it’s an opportunity for you to grab here.

One thing you need to know here is that the amount of downloads made on the store does not mean it’s the dollars you are getting. Online application stores have their own policies, even Google’s Adsense has their own policies it does not give away dollars that’s easy.

Now let’s compare the two: Mobile Application & Website.

Let’s say if you own a business then you must be having an online website through which users interact with you. If your website is not mobile friendly then you must be giving it a priority because most of the users these days visit the website through their mobile devices. if your website is not mobile friendly then there is a chance that the user may return.

“Question of the day is what do you think where the user makes their purchase, through a website or through a mobile application?”

Let me guess I think through a mobile application more than a website.

The reason behind this is that your customers want everything to be in a faster way. On the other hand, if your website is also not working fast and is not optimized for the mobile devices the speed of these websites can be an issue for them.

The easier way to earn money in a business is that you keep your customers happy and make them keep coming back. Getting back to the answer to the question one can say that making a purchase on a mobile application is much easier than making it on a website. In addition, the speed and convenience a user feels on the mobile application are more comfortable than on the website. The checkout process for any kind of purchase made is much simpler on the mobile application.

Well, there are many things you should consider and know before going for application development. There are many businesses out there which decide to go for application development with only one aim to get more audience & make money. Without giving it a thought that how it will work and what it will cost.

While developing an application or for the business going for an application one needs to make sure that the application should be built in such a way that it is capable of earning money. The cost of developing & maintaining an application also depends upon what type of app is created and on what platform it is built on.

According to a survey made it is seen that almost 65% of users prefer a mobile application for one and only reason which is a comfort. All that customers want is a fast, efficient and visually appealing app.

Going for application development means you have to choose between the two which is iOS & Android which is quite debatable. Well, you need to have very detailed stats about the two platforms.

mobile applications

According to recent stats, there are about 80-81% of Android users and the rest are iOS which clearly states that going with the Android-based application will be more feasible and trustworthy if you go with the right approach. You can easily make some money from these android apps.

Average purchase made on iOS is twice than that of Android users which does not mean that choosing or going for iOS is the best option. Assuming that iOS has a larger amount of purchases but Android has a larger amount of audience which can easily surpass iOS.

That’s all about the stats we discussed above.

Now let’s get on with

How does the payment chain work in both iOS & Android?

Talking about the payment method in the App Store, App Owners or Developers can get paid monthly. Apple has a different portal for the payment which is known as iTunes Connect if the users have the access to the iTunes Connect they can check their payments in the “Payments & Financial Reports” section.

Generally before the payment from the app store is made to the app owner or a developer they get the full report on the sales made by the application in the month. They send the mail containing the reports for a single region for the previous month. Reports can be generated according to the region in which the app is running.

Well according to the report the payments made by the app store to the app owner or a developer are for a months later for the previous month. You get the payment for the month of January in the month of March.

The policy of Apple Making Payment to the app owners is like you have to earn something before the apple makes you the payment. It’s called “The Minimum Threshold”. If you don’t reach the limit then they keep your payment until the next payment cycle. Also, the minimum threshold limit depends upon the currency you are getting paid in. For some currencies, it’s the US $10 and for other currencies the US $150.

This was the insight about the users getting paid on the App Store.

Now let’s check the insights about the

How the users get paid for their Apps on Play Store?

Generally, the developers can monetize their applications on the Play Store which is the Android Store. Developers use Admob for monetizing their Applications Admob is a part of Adsense and is used for mobile apps.

Developers just need to make sure that they are not violating the Admob Terms & Conditions or the Play Store Policy. Admob does not need any approval the app owner or the Developer just need to sign in and then they can use it in the application.

Apps on Play Store

Also, the amount you get paid for your app depends upon if the app is paid or not if it is paid then the purchase made from the Google Play Store is transferred to your account in a 30-day cycle. Also, there is no threshold limit set for your earnings from the application. If your app makes around a dollar then it gets credited to your account. Play Store on the other hands pays you in the ratio in which one part is paid to you and other is kept by the play store. But the part kept is very less in comparison to what you get. It’s a 70:30 ratio for the money you earn 70 is what you get and the other 30 is what is kept by Google Play Store.

Alright, this was the insight about the users getting paid through the Android Platform.

Getting back to the stats, 40% of the user using mobile have bought or purchased something online with their smartphones. The amount is increasing day by day. There are many company’s and businesses who use apps for their business and surprisingly the number of users downloads these apps are around 60% which is if take a rough idea than it would be around 175,000 to 220,000 users download their apps each month. Like for a clothing business if your business has appropriate application and these amount of users are downloading the application each month the around 50-60% of the users are repeated shoppers which is quite good for your business. When your customers are fixed then you are earning well and a good amount of money from it.

This is the strategy followed by many big business brands. You can easily generate revenue from your business website and definitely by developing a mobile application.

Here comes the Debate of Paid Apps vs. Free Apps on the store for customers.

Paid Apps

Well, an app owner or a developer can go for this option on the store to make their apps paid which means that the customers have to pay to download the app. But this is optional because it is found that users may don’t download the app if they have to pay for it. Although it seems like a nicer way to earn some profit on the upfront.

Also, Paid apps could result in building some loyal customers. If the users are willing to make purchase initially for installing the application then it could be possible that they could make inter-app purchases also.

But for an established brand with their retail chains and pre-made customers, it would be good for them to offer the application for free on the store as the amount of customer they have will automatically download the application when it will release.

Paid Apps vs. Free Apps

Free Apps

With the free apps, there might be chances that you get more amount of downloads than the paid apps but it’s found that the users who download the free apps are less engaged towards it if the application is not related to a bigger brand.

Sometimes it also that a user may download your application and may never use it again like the user just checked out the app and delete it. Also, it’s doesn’t cost you anything that the user download the app and never use it.

Surely if you are up-to releasing your application on the store whether its paid or for free a user will definitely go for the free one. Well, obviously the user will try the free version first than the paid version. Also, this will increase the chances of your application downloads. It will generally make you some money out of it and you can also earn from other sources also. It’s also a good idea to make money from creating apps.

According to the stats the number of free vs. Paid App Revenue is increasing day by day. In comparison with both the free and paid apps, free ones are getting more downloads user are going towards these apps.

So it’s good money in making if you are showcasing your business through these apps. The thing to keeps in mind is the numbers which keep on changing so you don’t need to worry on that side.

Another part in making money from the apps is the advertisers from which you can negotiate if your business on a hike and the number of app downloads are increasing on a daily basis. Also, you can provide the user only basic functions in the app and if the user wants some more features they have to pay for the premium app.


So, at last, the only thing I would say is not all the apps you see out on the app store or the Play Store are making or generating money. Some of them do and some do not. Users prefer apps compared to websites. An application can make the customer experience much better as compared to the website.

So if you sell a physical product then must consider having a mobile application which can also help you generate more money.

Ajay Goyal
About author

Ajay Goyal is the founder of Endive Software, is the leading IT Company based on India. He works dedicatedly with the clients to give industry-based results. His passion for learning the trending technology aids the team members to introduce unique and brainstorming. He runs development services like mobile app development and web development for enterprises and startups.
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