How much money you can earn from an Android App?

Let’s be honest, You are not just building apps for fun! There is a lot of money in mobile applications. Such as on demand mobile application development gives you lots of money if you have an unique idea. Creating an app has become a business, and actually an app makes you money. But only definite applications make you money, and the rest won’t bring you any profit at all.

The vast majority of developers earn very little, however, a lot of them make a good living, some succeed in business on the app stores and a few at the top are even creating multi-billion dollar companies. Because of the money as i said it before on demand mobile app development is takes a huge growth in this market. So, what’s different about the developers that are making very good money versus those that are living in app poverty?

According to the global market report, global mobile app revenue will reach $100 billion by 2020 from $75.8 billion (current). App revenues were just $8 billion in 2011 and grew to an estimated $45 billion in 2015  marking an increase of over 500%. And according to these projections, app store gross revenue could hit $100 billion in 2020.

Some industry insiders even expect revenues to surpass $100 billion by 2020. And if we go on to know the revenue generated by iOS versus revenue generated by Android, Apple’s App Store makes almost double the revenue of the Google Play Store. Despite the fact that most of the app users download apps from google play store, it seems that App Store users are more likely to pay for apps.

There are two major differences when considering the success and fails in app’s building.

First is that developers often ignore many previous mistakes and may do exactly the same. Second is that due to the fact that developers have a successful app, they often confuse correlation with causation. There is no special rule for profit on the app stores. All you have to do is try to avoid being entrapped. In-app purchases are one of the most common ways to generate money with your app. They are used most commonly in games and other entertainment apps. Offering items like game cash, new characters, character outfits etc. can be desirable enough for your users to pay for them.

This way you can keep your app free to download and enjoy, but still make money with it. If your app is not a game, you can still follow this option. For example, you can offer basic functionality for free, but make certain features “premium” and allow users to buy them. However, do consider that in recent years many users developed a dislike towards in-app sales and microtransactions. Especially games that heavily feature paid items are labeled “pay to win” and may be avoided by some users. You need to find a fine balance here

The amount that your paid Android app earns, gets credited to your account within the cycle of 30 days. There is no minimum threshold when it comes to the amount you earn with apps in the Play Store. If your Android app make money above $1, it gets credited to your account. However, Play Store works on a 70:30 payment distribution ratio. On the amount of money that you earn with apps, Play Store keeps 30% and credits the other 70% in your account.

There are never ending opportunities for fortune companies in the app market. The app market has been growing since day 1, and it has no plans of slowing down. Over 18% of android app developers earn over $5,000 per month, and the same amount is earned by 25% of iOS app developers. Video game apps are making money in millions. Now, the growing market of smart TVs and emerging market in smart watches will expand the app business in the coming years.