Developers have a range of options to choose from when it comes to generating revenue. This choice is, to some extent, dependent on business model, scale and target market. Which revenue models are most popular, and which are most profitable?
Key insights and recommendations:
- Selling your app B2B (commissioned apps or pre-loaded on a handset) is typically much more lucrative than selling the app directly to users through app stores.
- Models with recurring revenue from users (subscriptions, in-app purchases) come out ahead of the ‘traditional’ models like pay-per-download, freemium or ad-supported. Despite this, they’re less popular with developers, although in-app purchases are on the rise across platforms.
- You can use multiple revenue models concurrently. It’s not an either-or decision. On average, app makers use 2 models concurrently.
- Your choice of revenue model should be tuned to the category you’re in and the platform you’re using.
- For iOS, an opportunity exists to produce expensive niche apps. Also, in-app purchases are more popular on iOS than on other platforms.
- It’s more difficult to make money on Android. Your best bet is commissioned apps or a subscription model.
- The viability of revenue models changes extremely fast. Keep a constant eye out for trends in your category.
Related tools: In-app purchasing and virtual goods | Ad networks and mediation engines
