Money Making App Ideas: Profitable Mobile App Ideas for Earning Money in 2024

With the increasing number of smartphones worldwide, there has been a vast and significant growth in the mobile app market in the last decade. When executed well, mobile apps are essential for a business to smooth functioning or reach the target audience, along with having the potential as a revenue generation channel.

Let us look at some statistics that show how mobile apps fare in revenue and market size.

The number of apps available on the Apple App Store is about 4.75 million, and 2.9 million apps are presently on Google Play Store, as per Statista. On the back of these numbers, mobile app revenue is expected to reach about 613 billion US dollars by 2025 at an annual growth rate of 9.27%.

By 2025, the projected number of mobile users worldwide is expected to reach about 7.49 billion US Dollars, according to reports in whom studies show that people spend an average of 18.6 hours a month on apps which translates to about 36 minutes daily.

As apps have become a part of our daily lives, the potential earnings from an app have also become enormous. Businesses can leverage the insights from the above statistics and mold them into opportunities that lead to reaching more sales.

As a mobile app development company, one of the most commonly asked questions that we answer is – how to create an app that makes money. It is natural for business owners they wish to know how to make an app that makes money, as so much of their time and money is involved in its development.

Well, if you are an entrepreneur who wishes to enter the app market with a brilliant idea, you must first focus on developing a high-quality app with the right mobile app development team. Once your app is designed and developed, integrate it with the right monetization strategies and launch it. With the right customers, you are in for a steady income stream.

There are different ways an app can generate money, but first, let us see how much an app can earn before how to make money from your app.

How Much Money Can an App Earn?

The mobile app niche and the platform you choose to build on play an essential role in earning potential. It can influence your earning potential due to the differences in market penetration and popularity. It has been seen that Apple apps earn a lot more than Android.

The type of app also determines how much money an app can earn. For example, Free Apps do not get money from downloads, paid apps earn from each download, and subscription-based apps earn from each user subscription. Categories-wise, some big-time profit-making apps are video/audio streaming and video game apps.

Apps can make anywhere from $400 to $80,000 daily/month, depending on their niche and app monetization techniques. The top 200 apps make an average of $82,500 daily, while the top 800 make about $3,500 daily.

What platforms make the most money?

Some of the most profitable apps have been  Netflix, Tinder, Coinbase, and TikTok. They have some things in common-offer a good user experience, easy-to-use UI/UX, and clean interfaces, which get users addicted. In addition, they employ different app monetization models and strategies for their business which keeps the users hooked, thus, are the leading names in the apps market.

Apple’s App Store and Google Play store earn a majority of revenue from games which account for 71%, closely followed by streaming apps and other apps. On a holistic level, the top leading iPhone apps in the Apple App Store by revenue are:

Source: Statista

The top leading Android Apps in Google Play Store revenue is

Source: Statista

How Much Does it Cost to Distribute an App to Respective App Stores

The mobile marketplace you choose to host plays an important role in revenue. Let us see the pricing structure of the app marketplace you decide to distribute the app to. They have a similar pricing structure, and here they are.

Google Play

1) Takes a 30% cut off the cost of all apps and in-app purchases

2) 30% of subscription for the first 12 months and 15% per year afterward

3) Developers/Companies need to pay a one-time $25 fee to create a Google Play developer account

Apple App store

1) Takes a 30% cut off the cost of all apps and in-app purchases

2) 30% of subscription for the first 12 months and 15%  per year afterward

3) Developers/Companies need to pay $99 per year to release the apps on Apple App Store

Apple’s App Store continues to generate more revenue than Google Play. As per Statista, the global app revenue for the Google Play store amounted to almost 11 billion US dollars, and the Apple App Store generated 21.9 billion US dollars in consumer spending this year. Though Android dominates the market share and you can make money with Android applications, users spend less with Google Play Store than with the App Store.

Now that you know the costs let us see in detail how you can monetize your app and make revenue in the next section.

Innovative Mobile App Design Trends in 2024

How to Make Money From An App

The best way to make money on an app depends on providing a good UI/UX experience, chosen niche, and a monetization model. The following are a few monetization models that can follow to generate revenue for your app.

1. In-App Advertising

This is one of the most common models brands use in all niches. They are ads displayed as images/videos in the app relevant to the user’s needs and interests with the sole aim of pushing the user to click.

For example, one of the most popular photo-sharing apps, Instagram, displays ads as photos or videos on the feed or stories targeted toward the user. Instagram knows what users are looking for and shows them relevant ads to solve their needs owing to the algorithms which run in the background.

While most users do not prefer ads within apps, this is a widely used model for making money. In-app ads can attract users with well-thought ads in the form of banners, videos, native ads, and full-screen ads. Let us see what each of them is.

• Banner Ads

These ads are shown in a rectangular picture on the top or bottom of the mobile screen, which is highly visible. They contain text, static or animated images, and can attract users and generate awareness. While users can assume these banners are spam, it catches their attention well.

• Video Ads

They are promotional video clips shown within the app. It is one of the most effective ad formats that give a direct link to the service/product. They may sometimes be annoying to users due to the sound and can’t be skipped. Moreover, it costs more for the advertiser than a banner ad, but they can earn good revenue by displaying video ads.

• Native Ads

They are a seamless and organic way to display ads on the app as part of its content without obstructing the user flow. They don’t look like ads, as they are integrated into the app with good visibility.

• Full-Screen Ads

They are ads that pop up on the entire mobile screen that users can watch, tap or close. They are full-screen, high-quality, and catch the user’s attention with creative call-to-actions. In the case of these ads, timing and frequency matter, as users can get annoyed if displayed often.

2. Affiliate Marketing

Affiliate Marketing is monetizing by promoting third-party services on your app. It is closely associated with and works just like in-app advertising. One of the famous affiliate marketing programs is Amazon Associates, which helps monetize apps. You can display Amazon goods on your app through links; if the user clicks on them and makes a sale, you receive a reward.

The following are different types of affiliate marketing and their pricing models.

• CPA Ad Pricing

The CPA (Cost per action) strategy, also called PPA (pay per action), is the most effective way to gain revenue where the advertisers pay you the business in advance for users who are most likely to tap, view, and potentially purchase from your ad.

• PPC Ad Pricing

PPC (Pay per click) strategy is where the advertiser pays you a price for each user click and redirects it to the advertiser’s website. The marketing campaign under this model is easy to manage and implement, and businesses can view where traffic comes from.

• CPV Ad Pricing

CPV (Cost per View) is a video ad pricing model based on the number of views the video ad gets. A bid is based on how much the advertiser is ready to pay for each view.

• CPM Ad pricing

CPM (Cost per Mile) is a model where the advertiser pays you a stipulated amount for every 1000 times the ad is shown to the user.

• CPI Ad Pricing

CPI, or cost per install model, is where you get paid for each install from the ad. It incentivizes the visitors to download the app, and though it costs the advertiser more money, it can be revenue-generating.

3. Crowdfunding Model

This is widely used for raising money for a cause, charitable deeds, or a unique business idea. You can monetize your app on platforms such as GoFundMe, Kickstarter, or Crowdfunder as a channel of extra income and raise money for your company.

4. Sponsorship

This app monetization strategy can be incorporated into apps with the right target audience and connect with other brands in the same niche on your behalf. Before you begin, create a list of organizations and brands you gain to benefit from. You can then divide the revenue you receive equally or collect a monthly sponsorship fee from them.

5. Subscription

One of the best and most highly effective app monetization techniques runs without ads. You can offer free content on your app for a limited time and then charge users a subscription fee to access the content without any restrictions. This is often used by audio/ video streaming and online news apps, which offer a free trial period initially and then charge a subscription fee to continue accessing app content. It can result in a more reliable income, and you have more engaged audiences.

6. In-App Purchases

One of the best app monetization models is most relevant from the user’s point of view. It allows you to create exclusive content or features for a fee in your app. Your app may be free, but users only need to pay to enhance their experience and use additional features. For example, gaming apps like Clash of Clans and PUBG use in-app purchases that allow users to purchase the necessary tools to progress better in the game.

Gaming apps use this strategy the most as it converts free users to paying users without being intrusive. Also, keep your app engaged so that users keep paying, and you can generate money this way.

7. App Merchandising

Apps can cash their popularity by offering merchandise such as T-shirts, accessories, toys, stickers, etc. For example, apps such as Angry Bird and Tik Tok have begun selling exclusive merchandise for their audiences. You can popularize your brand this way, even if your business does not include selling merchandise as its primary business model.

8. Transaction Fees

One of the best ways to make money from apps can be by collecting money in the form of a transaction fee. It can be possible for apps where digital transactions occur daily. For example, if your app can sell products from 3rd party sellers when transactions are carried out, you can charge a small % of the transaction fees on each order to make money. You can also set a small price for listing products on your app and earn revenue without investing much money.

Summing Up

We hope this guide helps you understand the mobile app industry from the usage and monetization perspective.

Mobile usage and penetration are at an all-time high. It is the right time to enter the mobile app market for anyone who has a mobile app or plans to build one. With numerous ways to make money with apps, it takes planning and a multi-faceted strategy to implement one and not overuse app monetization methods.

However, remember, along with the best design and development, your app must provide a good user experience to generate revenue for as long as people use it. Therefore, deliver value and meet customer expectations to succeed and grow your business. Something that would require you to partner with a sound application development agency like us.

We recently teamed up with a Mental Wellness client who has plenty of years of experience in the field. They wanted us to create an app and website within three months of time that reflected their innovative and refreshed approach to wellness. We had creative freedom and flexibility and successfully created an app within the timeframe. With thousands of followers and users on board, they have collected 1 million USD on subscriptions and plans. They also received $2 million in funding from VCs worldwide.

If you are unsure how to make money-making apps, you can hire an excellent mobile app development company like Ailoitte to have the edge over your competitors. Our development team will ensure we develop the app of your dreams, keeping it in line with your business requirements and objectives. Having delivered 100+ apps across diverse verticals, we can shape your vision into reality.

Get in touch with us today to know more about how we can help build an app.

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Sunil Kumar