This is a world full of money, but how can they really make money with apps the developers?
That the mobile application market is generating significant gains is nothing new. However, how much do developers make money with apps? Tristan Louis, contributor to Forbes magazine has published an interesting article in this prestigious journal which helps to better understand the app earnings in Google Play, the App Store and the Windows Phone Store.
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Google Play is the industry's leading marketplace, with 900 million monthly active users. Despite this, it isApp Store the one that counts the highest number of applications loaded: 1.250.000. Behind these numbers are approx 235.000 developers, to which Apple has paid over the past year 5.000 million dollars.
Looking at this data, how does the Windows Phone Store even appear in this app revenue comparison if it's so far behind the two mobile giants? The applications for Windows Phone are those that record the highest earnings per download: 15 cents, thus exceeding the 10 cents of iOS applications and the 2 cents of Android apps.
What is this due to? According to Tristan Lous himself, although Windows Phone only counts 160.000 app in its store, an important percentage is made up of paid apps. For this reason to one Windows Phone developer it costs less in terms of labor to receive money for its application than one android developer. Google's operating system matters 800.000 applications, but the vast majority of these are free.
How can you make money with apps?
On the other hand, if Windows phone had the same per-application downloads that Android currently has, it would be the leading operating system by revenue percentage.
Certainly it is difficult to summarize as a percentage of revenues, it is necessary to distinguish between revenues from downloads, those from in-app purchases and those from viewing ads.
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How much do Google and Apple pay for each download?
At the time of loading paid applications per download we can say that it is Google and Apple retain 30% of revenues. Therefore, when deciding the price of our application we must keep this aspect in mind. So, in reality, for each cashout following the download, the developer will only receive 70% of the amount.
How to make money with apps? In the end it's easy. The more expensive the app, the more money you'll make, although there may be fewer downloads. Likewise, the more downloads we get, the more money we get.
Are there any exceptions?
Yes, they exist. There are cases in which it is possible to reduce the commission or even this is absent. But these don't concern cases in which we intend to make money with apps, rather when we want to create an app to promote a good cause. For example in the case of an application that collects money for an NGO or an ONLUS. But be careful, don't use this option incorrectly if you don't want your app to be deleted. Apple, for example, verifies that these applications are really made for ONLUS.
And the rest of the revenue?
This is the case with advertising revenue within the app. It doesn't matter what the number of downloads is. In this case we will focus on the prolonged stay on the web page. We're going to need really loyal users who spend a lot of time inside the application. More usage time means more ad views, and consequently more revenue.
In the case of in-app purchases, Google and Apple also retain a percentage (5% Google and 30% Apple). In these cases we have to check the products we sell within the app and verify our business model in order not to lose money.
