Every month Apple app stores nearly one billion dollars in sales of their apps and games. Everyday people spend hundreds of thousands of dollars each day creating and selling. I'm sure you've heard people like Ethan Nichols, the maker of iShoot, $ 600,000 in one month, or the brain behind the iFart, $ 27,249 in one day. The numbers are surprising and inspirational, but these numbers naturally lead the strange and logical person to ask, "How exactly do these people make money with iPhone applications?"
In the eyes of the consumer, there are two types of applications: paid and free, each having its own benefits and each one is lucrative. The paid application entry model is quite simple. Apps are offered at a predetermined price, typically between $ 99 and $ 2.99, which may seem somewhat modest at first, until they find that these numbers can easily compile popular revenue from $ 1 million to $ 3 million.
The free application revenue model, on the other hand, is the basis for advertising that is based on profits. The ad is a billion-dollar industry alone, and the number of iPhone and iPhone applications is currently increasing by over 70 million, and companies recognize the value of ad-serving. Google AdSense and AdMob are two forward looking items that are at the forefront of mobile ad serving, which often appear in the form of banners appearing above or below the app's screen. In a relatively short lifecycle, AdMob mobile ads have generated over 474 billion impressions, which is thanks to many happy advertisers, so many happy application developers, even happier wallets.
Benefit from free applications for consumers to get a chance to first test app, risk free. An unknown, independent application developer may have problems paying people for their application as there may be some uncertainty about the application's surface, utility, errors or technical errors. But when the app is offered for free, the consumer can relax and the developer can gain the confidence of a new customer who can pay in the long run and introduce a new revenue model that is becoming more popular with free and paid revenue models. This "freemium" model includes initial free initialization of the product and later uploading, which will be easy after the consumer has identified the need for the application. Thus, app owners are given the opportunity to promote profit through free-end advertising and backend purchases.
There are several ways to offer free apps and then make money later. It is possible to unlock additional levels (games) or features (apps) for an extra price, which may be the first time you have a lite or demo version. Or, some apps offer free of charge the entire app and so they can remove the ads at a price. Many developers also offer money with the free app for app purchases that allow the app user to purchase items from virtual currency to help them better utilize the app or to move on to the game. Facebook Mafia Wars is one of the many games offered to implement this model. However, this model may be complicated because developers need to be balanced with additional purchases that increase the app or gaming experience while not deceiving people who choose not to upgrade to feel they are defective, they would be useless. ] One of the last steps when earning money with applications is to take advantage of the successes you have achieved. Once developers have earned money and recognition with a popular app, they can advertise a new upcoming app that they've created in the app. They can take advantage of the company's reputation and release and market later apps, taking advantage of the wide user base of already happy application users.