Apps make a lot of money. Spending on Google Play and the App Store hit an incredible $39.7 billion during the first half of 2019 according to data from Sensor Tower. This was a 15.4 percent increase in the same period in the previous year.

Additionally, app use is growing. In its most recent “State of Mobile” report, AppAnnie found that between 2016 and 2018, time spent in-app grew by 50 percent, while downloads increased by 35 percent. This suggests that there is plenty of proof that many free apps make money.

According to statista, Android users can choose between 2.4 million apps in the Google Play Store nowadays 1. IOS users have slightly fewer apps to pick from, but with 1.9 million, it is still an overwhelming number. Thus, mobile app marketers and developers need to make sure that their apps stand out from the crowd.
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If you’re wondering how to create an app for free and make money, you’ve come to the right place.

Lucktastic is an interesting app that pays out in the form of sweepstakes or gift cards once you earn a certain number of points. You can play virtual “scratch-off” games to add to your pot. The popular app has prizes ranging from $25-10,000, with over a million winners already. Where does the money come from?

In this article, we’ll first look at how to create an app, and then explore six of the most popular app monetization methods.

Image: William Hook/Unsplash.

Table of Contents

1 How to Make an App
2 How to Create an App and Make Money
3 Six App Monetization Models

How to Make an App

The first step towards app monetization is to go ahead and build one. This means you’ll need a good idea that people will find useful and want to download. If you don’t have a specific idea for an app, you can always think about a problem you have and a way to solve it.

Alternatively, are there any popular mobile apps that you like but think could be improved? If so, why don’t you release an app with the improvement?

The founders of Instagram released the app in part because they loved the filters of Instamatic but thought it would be better if it was easier to share photos. It’s now one of the most downloaded apps ever.

Image: Austin Distel/Unsplash.

If you are planning an app monetization strategy, you should consider this at the start of the design process.

For example, if one of your app monetization strategies is to use ads, you’ll need to build in space to display banners while designing your app.

Likewise, if you want to run a subscription model, you’ll need to consider the features that will be available to all app users, as well as those that will only be available to those who pay.

We have an in-depth article on how to build your own mobile app that you can read here. In the article, we broke the process down into several steps:

First, You Need to Plan Your App

If you already have an app idea, this could be the easiest part of the process. If not, the most difficult. You can check out these 12 ways to generate app ideas if you are struggling.

When planning your app, you’ll need to have an exact idea about what it will do and the problem it will solve. You should also think about the target audience and what will appeal to them. You can get good ideas about the type of apps that are successful and make money by looking at competitors or non-competing apps with the same target audience.

This is also a good way to choose your app monetization strategy. If you notice most apps like the one you want to create offer a free version, you will probably struggle to be successful if you want to charge for your app. On the other hand, this could suggest the kind of app you want to make can be monetized through adverts.

Image: Jexo/Unplash.

Next, Choose How You Will Build Your App

The next step in the app development process is to start building it. You have two options here. The first is to go through the whole process of creating wireframes, graphical interfaces, and testing the front and back end processes yourself.

Alternatively, you can use an app builder to take care of the process for you.

While the first option provides more customization, the second option is easier for those without experience in app development.

If You Choose to go it Alone, You’ll Need to Start by Wireframing

If you choose not to use an app builder and go the custom route, you’ll have to start by wireframing. This will help you create the structure of your app. There are plenty of tools that can help with wireframing, including Microsoft’s Visio and Axure. Be sure to test out these wireframes extensively.

Then Design the Visual Elements of Your App

At this point, you can begin designing the visual elements of your app, including your logo, color scheme, and any graphics or animations you choose to use.

You’ll need to do this whether you choose to build it yourself or use a DIY app builder. If you don’t have the expertise required, you can always hire a professional to take care of the process for you. Sites like Upwork are great for this.

Sort Out Your App’s Back End and Front End

The next step is where things get complicated. First, you’ll need to build the back end of your app. Getting this right will ensure your app works as it should. If you have limited software development experience, this is where using an app builder can save you a lot of time and stress.

Following this, you can design the front end, which is the interface users will see.

Finally, Put Your App Through Final Tests

While you create an app, you should be testing it out as you go. However, the final step in app development is to test the finished product.

You should test the app on numerous devices and give it to different people who fit your target audience. This will allow you to collect a variety of opinions about what works and what doesn’t.

If you notice there are any problems, be sure to fix them before releasing your app.

How to Create an App and Make Money

Now you know how to create an app, we will look at different monetization strategies. In this article, we’ve split monetization models into six categories. These are:

Paid apps
Subscription
In-app purchases
App advertising
Affiliate marketing
Mixed monetization methods

The best way to create an app and make money will depend on the type of app you create. Gaming apps make money from in-app purchases. On the other hand, many software as a service apps earn a lot of money through subscription programs. It’s also possible to use adverts to monetize your app.

The good news is, there are plenty of examples of successful apps no matter what monetization model you choose.

Before We Start: What Cut Do App Markets Take?

Even though free apps make money, you need to consider how much the app marketplace you choose to distribute your app on takes. Both Google Play and the App Store have a very similar pricing structure. Let’s take a look at them.

Google Play

Google Play takes a 30 percent cut of the cost of all apps and in-app products.
It takes 30 percent of all subscriptions for the first 12 months of a customer’s subscription. After this, it only takes 15 percent.
Developers have to pay a one-off $25 fee to create a Google Play developer account.

Apple App Store

Apple takes a 30 percent cut of all apps and in-app purchases.
Like Google, this reduces to 15 percent after a customer has subscribed for 12 months.
Developers have to pay a fee of $99 per year to release apps on the Apple App Store.

Six App Monetization Models

Here is a look at six app monetization models you can use to generate app revenu

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