People develop and publish apps either to get some money or fame or for fun. Most of the people also want to make some passive income from developing apps. Who doesn’t love a passive income?
For people who want to make some passive income from your apps , this will be a great guide on how to make some income/revenue from your apps.
1) Ad Revenue
By displaying ads in your app , you can make revenue. There are thousands of developers making huge money just by ads in apps. Advertisers need a way to reach people across the world. There are hundreds of ad networks who can provide you ads and can pay you for ads.
There are different types of payments for ads.
Cost Per Click ( CPC) – Cost Per Click is the most famous type of ad. In this mode , you will be paid for each click on your ad inside your app. Let us say , you displayed an ad for 1000 times and only 10 people clicked through the ad , then you be paid for 10 clicks irrespective of how many time you have shown the ad. The amount of money you will make completely depends on the how much the advertiser is paying for the ad and what geographic location the ad is being served. Usually , you will get more cost per click for US traffic. The typical pay out rate is 60-70% to the publisher and remaining to the ad network provider.
Cost Per 1000 Impressions (CPM) – In this , you will paid for every 1000 impressions of your ad irrespective of any clicks. The amount will be much lesser but this is not a bad option if you have a very low click through rate.
Cost Per Install (CPI) – In this you will paid every time somebody click your ad and goes to playstore/app store and install the advertisers app. This is also called as Cost Per Action. Paying you only when certain action takes place. This will much higher than CPC as you are giving a new user to the advertiser.
Then coming to the types of ads, ad are classified in to two main types based on how they are displayed.
Banner Ads : Banner ads are the ads that you see at the top of the app or at the bottom of the app. There are usually good as they mostly don’t disturb the user experience. The usual pay out for these types of ads is slightly less. Most of the ad networks auto refreshes the ads ( called ad cycling) for a fixed duration like 30 seconds or 45 seconds either set by you or by your ad network provider.
So, even if your user is on same screen playing something , the banner refreshes itself and shows new ad increasing the click though rate.
Interstitial Ads : Interstitial Ads are ads that cover the whole screen of your app. You must be really carefully while displaying these ads without compromising the user user experience. Too many interstitial ads often irritate the user and makes him/her uninstall your app looking one user. So, the cost of showing too many interstitial ads is loosing users. However , these pay high rates are the advertiser is occupying your whole screen. Again , most of the networks pay you only when the user clicks the ad.
The best time to show this type of ad is when the user finishes a level or lost a game or won a game. Never try to show the interstitial ads when the user is seriously playing or really looking for something.
Video Ads : Video ads also pays good on mobile apps. Video ads are typically anywhere between 30 seconds to 45 seconds duration and are paid per view or some time cost per action.
Now , lets see the ad providers. Ad providers or Ad Networks are the networks who talk to multiple advertisers and gets advertisements to display in your apps. So, for all these efforts , they take 20%-30% of your ad money and it is a win-win for both the publisher and the ad network. With this kind of setup , as a publisher you don’t need to run for advertisers and loose time. Also , all the payments to advertisers will be handled by your ad network provider. Once you have a million installs , you can always set up your own advertising network to shows ads on your apps. But if your app is new or has less than a million impressions , it is wise to use existing ad network providers.
The best Mobile ad network is Google’s Mobile Ad Network – Admob. Admob is absolutely great and provides high fill rates. You can signup here for admob here
Some other mobile ad networks worth mentioning are Chartboost, Tapjoy, Flurry, Revmob, PlayHeaven, Vungle etc.
2) Paid Apps
Charging fixed price for your app is another great way to make money. If you are confident that people will be willing to pay to download your app , this is best way to make money. If you really make a good app , there are people who would like to pay and download. The typical costs of paid apps lie between $0.99 to $2.99. Your must be really good to go with this model.
3) In App Purchases or Freemium Model
In App purchases is the process of charging the user for certain functions with in the app. The base app would be free and the user would be charged if he/she needs some other utilities inside the app. Typical examples of In-App purchases are some extra powers when you want to win a game or need more time to find a treasure in a treasure hunt game. This works well if you have good user base.
4) Selling Your Apps Portfolio
You can completely sell your app business using sites like http://marketplace.apptopia.com . There are several reason for people to sell their app business (portfolio). Some people just enjoy building apps and may not like marketing. The usually build the apps and publish to app store and wait to get 10K installs and see the portfolio.
5) Sell Your App Templates
You can see your app templates on sites like http://www.chupamobile.com/sell-apps and http://www.deepblueapps.com . These also provide a great income to developers. There are developers usually in Non-US countries who make apps exclusively for selling in these markets. You can sell your template for a single app license or a multiple app license.
6) Build a website and link to your app
Build a website and link it to your app. If your app has a decent number of downloads , you can get a good traffic to your sites and you can get some more ad revenue from people visiting your site.
7) Make a Udemy video on how built your app and making revenue out of it
People want to listen and know how you do things like building your app , coding your app , testing your app or marketting your app. Build a nice video and explain how you made your app. You can see your video as low as $1. There are some highly successful videos with thousands of students paying $200 per course per student. usually people charge $30 for an hour of content. So, if you have made a 2 hour video , you can charge $60 per student. Check at https://www.udemy.com/courses/search/?ref=home&q=app+development
8) Start writing a e-book on how you built your app and made some revenue out of it
Start writing an e-book on how you made your app and made some revenue out of it. Even if the revenue is $100/month , people would still like to know your story. Make an e-book with your earning report. Sell it either on Amazon or offer it for free to your users on an email signup. Once they signup for email , thank the user with your e-book and also send them a link of your apps. If you are confident that your book can make money in Amazon , you can see it for as low as $0.99. Writing an e-book is as easy as using Microsoft word. You can write your work in Microsoft Word and can upload to Amazon to convert as an e-book.
9) Start writing a blog about your app
Write a blog about your app. Be transparent. Show them your stats and reports and generate some content for your blog. Soon your data will be picked up by search engines if your content is genuine and you can get more users reading your blog and there by downloading your apps giving you more money.