Making money with apps and games

Make-money-with-app-and-gamesMaking money with apps and games has never been so easier with so many easy to use app development kits. First be certain your app has a market. Reach out to family and friends to test your app for attractiveness and usability. Ask them how often they use the app, how long they use it each time and if it is solving a problem for them or providing a service they want.Once you have your user data collected, there are several models for making money with a successful app and they all have advantages and disadvantages depending on what type of app you’ve developed. According to, three pricing models generate revenue. In-app revenue from free apps brings in 71% of money for apps, paid apps are at 24% and paid apps with in-app revenues are at 5%.


This is the most revenue generating model for monetizing games and apps and the most popular. In-app purchases generate 76% of all revenue in the US Apple App Store and over 90% in the Asian markets according to This does not include the Android and Nokia markets.

A freemium app is downloaded by users free-of-charge with limited content, features or virtual goods. Users then buy the premium version or additional features and content with in-app purchases. Or users subscribe to monthly updates for a fee. Providing the app or game for free provides the user with the opportunity to explore the value of the app.

Consider offering a free basic version of your app to get their attention and offer them a monthly subscription for premium features or additional features at fixed prices; and if you’re lucky, they’ll get hooked! Your app could be the next Candy Crush!

Pay to Download

make money with iphone games and apps

You can charge a one-time fee for each download of an app. Then, your customers will expect free updates and feature additions. In order to launch a paid app, it needs to be attractive enough for users to pay for it without sampling it. Utility apps are good for this such as battery life gauges and unlock screen notifications. Angry Birds is often referred to as the world’s number one paid app.

Free Apps with Advertising

This model is not addressed by, and is used by many apps. In this case, the app is free to download and runs advertisements for as long as the app is in use. Choose this model when a large number of users will download and frequently use your app.

Pandora radio began this way and still offers a free version of their product supported by advertising as well as a premium subscription version.

Paid Apps with Paid Features

This is, by far, the most difficult sell to the digital consumer, and has been gaining revenue share recently. For this to work, your app must offer good basic value and be attractive to power users who want more functionality.

As with many businesses, the way to monetize your app or game and achieve annual revenue growth is through gaining new customers and repeated transactions with existing customers.

Making money with apps and games will always be an evergreen and massively profitable niche because mobile devices aren’t going to disappear anytime in the near future.