How to make money with your Android app

We recently discussed the initial costs of developing an Android app.  With that unpleasantness behind us, we can now get to the good stuff:  how to turn that investment into profit.  There are in fact a number of revenue models that app vendors use to monetize their products, and deciding which model to choose depends on a number of factors, such as category, functionality, and, of course, platform.  What works best for the iOS apps isn’t necessarily what works best for Android apps, and below we’ll consider the various models to help you select the right one for your app.

• Paid Download:  This is the most straightforward of the mobile app revenue models, payment for services rendered.  However, when it comes to Android apps, it’s unwise to be seduced by the simplicity of the paid download model.  According to a recent Distimo report, over 80% of Android apps using the paid model have been downloaded fewer than 100 times.  You’d have better luck at the horse track.
• Freemiums:  A combination of “free” and “premium,” this model essentially uses a “lite” version of itself to entice customers into purchasing the more sophisticated version of the app.  This particular model is gaining traction in the marketplace, as developers seek more innovative ways for marketing their wares.
• In-app purchases:  Primarily used in game apps, this model involves selling upgrades – virtual currency, armor, weapons, et cetera – to customers who download a free game and get hooked.  The in-app purchase model is becoming increasingly popular for Android game apps.
• Advertising:  Hillel Fuld of GigaOM recently predicted that the sale of advertising space in mobile apps will rise as high as $5.4 billion by 2015 in the U.S. alone, and concluded that “mobile advertising is the way to go.”  Depending on the nature of your app, the advertising model is definitely something to consider.  Even the world-famous Angry Birds makes use of this model on Android devices, where the app is free, and much less so on iPhones, where it is not.

Got a great idea for an Android app?  Send me an e-mail and we’ll get you started on developing your app right away.