Is It Possible To Earn Money From App Development?

The Google Play Store was the first-largest app store, holding over, 3.29 million mobile apps in the first quarter of 2022, and the Apple App Store was the second-largest app store, with roughly 2.22 million available apps for iOS. There are more and more apps that are free to use; you rarely find paid apps because more than half of the generation doesn’t use paid apps.  But then what about the income that is generated through the app? Is it possible to earn money from free app development? Can free app development help me make money?

All these questions are necessary to understand before you start developing an app. However, with proper research, it’s quite easy to learn how you can make money developing free apps.

Basically, a company can develop two types of apps, free or paid. Paid apps revenue models are easy to understand, but to scale in the market, it’s important you develop free apps.  According to the statistics, free apps are dominating the market with 96 percent on Google Play and 90.3 percent on the App Store, generating $71.3 billion in revenue.  The data says 98% of profit and downloads come from free mobile apps.

Statistics are the way to know that free app development is the best way to earn money, but how do these free apps make money?

There are various business models through which you can earn money from app development.   Here are the 5 best ways to earn money from free app development.

Free apps are one of the best ways to earn money. If you want to do so, you can run four types of apps on the platform. For example,

When you run CPM on the platform, you can earn payment for every 1,000 views of the ad.

In this, you receive payment when the user clicks on display ads.

 Cost-per-view (CPV)

In this case, you can charge the advertisers for the number of ad views.

In this revenue model, you receive payment when the app user installs the app you promote.

Freemium is also the best way to monetize your free apps. Freemium is quite a subscription model, where users get all the basic features for free, and if users want to get access to advanced features, they have to pay the specified amount. This revenue model encourages users to first interact with free features, and once they are addicted or like your app, they will surely shift to the subscription model.

In this revenue business mode, you can earn money by charging a subscription fee for providing services on the app. Netflix and Amazon Prime are the best examples of subscription-based app revenue models.

Giving your customers something apart from the app can also help you earn money. You can offer your customers an in-app purchase experience and make money out of it. You can sell different types of items on the app, such as consumable items, clothes, shopping, games, etc.

Crowdfunding is becoming popular to raise funds for app development.  Major platforms like Kickstarter, Indiegogo, and CrowdFunder help you to raise funds. On this platform, any person can donate easily. According to the study, in North America, crowdfunding generated over $17.2 billion in 2018.

There are various other methods to earn money via free app development, but we have discussed the most popular and efficient ones. I hope these methods will help you understand the revenue model of free apps.