Every month, the app store of Apple makes nearly a quarter of a billion dollars in sales of their programs and games. Everyday folks are raking in hundreds to tens of thousands of dollars on a daily basis by creating and selling these same apps. I'm certain you have discovered the narratives of individuals like Ethan Nichols, iShoot's originator, making $600,000 in a month, or the brain behind iFart making $27,249 in a single day. The numbers are both astounding and inspiring to say the least, but such amounts naturally lead the interesting and logical person to ask, "But how precisely do these individuals make cash with iPhone programs?"
There are just two varieties of programs: free and paid, with each having its own edges, and each being equally successful when looking through the eyes of the consumer. The app revenue model that is paid is quite uncomplicated. Programs are offered for sale at a set cost, usually somewhere between 99 cents and $2.99, which may seem modest at first, until you realize that these amounts could readily translate to $1 million to $3 million in revenue for a popular program.
The complimentary app revenue model, on the other hand, has its basis in advertising, which it relies upon to bring in gains. Marketing itself is a multi-billion dollar industry monthly, and with the amount of iPhone and iPhone app users currently at over 70 million and growing, companies are realizing the value in marketing through apps. Google AdSense and AdMob are two standouts at the forefront of serving mobile advertisements, which frequently take the shape of banner ads running across the top or bottom of the program screen space. In its relatively short lifespan, AdMob mobile advertisements have resulted in over 474 billion beliefs, which translates to lots of joyful advertisers, and so lots of program developers that were happy with wallets that were even more happy.
An advantage to offering apps for free to the consumer is because they get an opportunity to first test out your app, risk free. An unknown, independent app programmer might have problem getting individuals to cover their programs, since there may be some uncertainty about utility, the app's interface, or possible bugs or technical glitches. This "freemium" version entails offering the merchandise free of charge initially, subsequently charging later, which should be easy after the consumer has already established their necessity for the app. In this manner, program creators get a chance to profit on profits through both marketing in the complimentary app and backend purchases.
There are multiple ways of offering an app free, subsequently making money later. You can provide the capability to unlock additional levels (for games) or attributes (for programs) for an additional price, which can occasionally mean offering a demo or lite version first. Or, some programs offer the complete program for free, then the capacity to remove advertisements for a cost. Many developers also make money offering a free app with "in app" purchases, which enables the app user to purchase items using virtual currencies that help them to better use the program or advance in the game. Facebook's Mafia Wars is one of several games the developers offer that implement this model. This version could be crafty, nevertheless, because programmers must balance providing an additional purchase that enhances the game or program encounter, while simultaneously not cheating individuals who prefer not to upgrade by making them feel as though they've a program that is incomplete, unusable.
One final step in making money with apps, is capitalizing upon the success one has already attained. Developers can advertise within that program for a new, coming app they've created once they make money and gain notoriety with a popular app. They are able to leverage their company's notoriety and release and market following apps, taking advantage of their broad user base of already happy program users.
