How to Make Money with Apps in 2023 Using Our Tips and Strategies

January 20, 2023, Fleur van der Laan

Are you wondering how to make money with apps in 2023? You're not alone.

Whether you are a business owner who wants a custom sales platform, or a developer looking to make a passive income…

There’s a lot of competition in the market that you need to beat.

Making Money with Apps in 2023#

Not only are you going to find yourself competing with vast marketplaces like Amazon, but there are so many other platforms out there.

Even in the smallest eCommerce niche, there are likely alternatives that offer the same products and services as you. Therefore, you need a strategy for building the right type of app for your needs.

This guide from AppMachine will teach you how to make money with apps

Making Money with Apps#

Not only are you going to find yourself competing with vast marketplaces like Amazon, but there are so many other platforms out there.

Even in the smallest eCommerce niche, there are likely alternatives that offer the same products and services as you. Therefore, you need a strategy for building the right type of app for your needs.

How do Apps Make Money?#

Before you begin your journey, you need to decide which method is your preferred direction to make money through an app. Ask yourself the following…

Am I going to set a purchase price upon it?
Am I listing your products and services for sale?
Am I going to sell advertisement spots?
Am I going to build traffic and then sell my app?

Whatever your decision, you don’t want to overwhelm your audience and create something that seems “spammy” and unhelpful. This will only deter potential customers.

Top Tips for Making Money with Apps#

You can’t just go in blindly, hoping the strength of your proposition is going to be enough to convince an individual to type in their credit card details.

You need to be trustworthy and credible to make money with apps – which is often largely influenced by the initial development stage you are bound to go through.

1. Set Your Goals#

When it comes down to it, you can’t just publish a low-quality mobile application and expect it to perform. During the app creation, you must carefully consider the layout and function of every single feature, tab, and button and their purpose in your overall plan.

2. Find Your Audience#

Just like any other product, you're not going to see any success if you don't understand who you are building your app for. Therefore, before you even begin developing one, you should spend time assessing your market and competitors to position yourself perfectly.

3. Define Your USP#

To make money from apps, you need to ask yourself an honest question. Why you? Out of all the other substitute applications out there, why should your audience download yours (even if it’s free)? Identifying what makes you special will further your goal to make money through apps.

4. Create a Quality App#

Your user experience is everything. Not only will a well-developed app ensure you make it onto the Google Play store and App Store on the first place, but it’s much more likely to engage your audience and further your goals.

5. Run A/B Tests#

To give your app the best chance of making money, then, you need to not only develop it correctly, but you need to get in the minds of your target users. Be sure to conduct A/B tests of the different CTAs you use, as you might see a drastic difference in your conversion rate.

6. Cross-Promote Your App#

Making money with apps is easy if you can direct traffic to your platform and encourage people to make that initial download. This can be done through your pre-existing social media platforms, website, and email list.

App monetization strategies#

A mobile app monetization model refers to making money from your app to support it. There are various app monetization models you can choose from - many of which can be combined to bring in different sources of revenue. The most appropriate option for your app will depend on the sector your app is in and who your target audience is.

Selling ads space is an excellent free app monetization strategy #

If you want to monetize your app quickly and effectively, placing advertisements inside is often the most effective and fastest way to do so. Almost any type of ad format can be accommodated in the mobile app advertisement format, including but not limited to the following:

Native Ads: There are many advantages to native ads, including appearing "natural" in your app. Unlike banner ads on a website, native ads fit seamlessly into your app's design. Make sure that their design looks similar to another post on the app or as a feature embedded within it.

Banner Ads: Banner ads supplied by a third party ad network are placed in high-traffic locations in an app, creating brand awareness and generating click-throughs, purchases, and leads. These high-visibility locations are places where the eyes of browsers usually wander.

Interstitial Ads: This advertising format displays ads over the entire screen. The intention is to avoid "banner blindness," where you know users are used to ignoring banner ads. Full-screen interstitial ads can be disruptive if placed in the wrong place, so they must be placed at natural pauses, such as in-between levels of a gaming app. This will ensure that users have a positive experience with the ad and are more likely to remember it.

Video Ads: Mobile advertising has come a long way recently, from small banners to highly engaging and immersive in-app video ads. You can place playable videos, reward videos, and many more. The choice of In-App video ads is a vast subject.

Reward Ads: The idea behind reward ads is clear, give something to your user for viewing an ad. For example, in a mobile game, give your user another "try" if he fails at some level and if he then watches an advertiser's video.

Gamified Ads: These are mini-game ads that encourage users to interact with them.

One of the monetization methods is Paid Apps#

Firstly, people prefer to avoid paying for apps. And remember, free apps can also make money.

90% of the apps on the Apple App store are free.

But there are still 10% paid apps. According to Statista, the number of iPhones in the united states was around 125 million in 2022. This means you have about 12.5 million customers happy to pay for apps on the Apple App store alone.

What about Android? They have about 135 million devices, presuming 10% paid apps to give you 13.5 million devices. You have a market of over 26 million customers, which is very respectable.

Customers and companies will be happy to pay for apps that supply them with fast and reliable data when needed.

Your customer may need this type of data if, for example, he is involved in finance or logistics/transport.

The companies are looking for any data about the potential customer. Remember how much data Google and Facebook collect about you!

Search "Best Money Making Apps." The results will include:

32 Legit Money Making Apps For Android/iOS
The 35 Best Money-Making Apps
50+ Apps That Pay You Real Money: The Best Money Making Apps of 2023

If you read those articles, you will learn that one way or another, most of those apps collect data in the following ways:

Asking you to take surveys
To share your location
To snap pictures of your grocery receipts

And more.

The main takeaway is to do your research, find those companies that are hungry for data, and develop apps for them. They will be willing to pay well.

In-app purchases#

In-app purchases are a significant revenue stream for free apps.

Here are some statistics about in-app purchases:

The number of mobile devices in 2022 was about 16 billion
Five percent of users make in-app purchases
About 50% of apps have in-app purchase options

Apple and Google take a cut of around 30% of in-app purchases. But they have an interest in keeping good relations with app developers, so they reduced their fees for in-app purchases after one year to 15%. If an app still thrives after one year, it will likely continue to be successful.

iPhone users spend an average of $1 on in-app purchases, while Android users spend $0.47.

Add in-app purchases such as extra features, virtual goods, or products to your app.

Build apps for others and become a reseller#

This is how it works: software developers create a white-label app without specific branding. These apps are designed to be resold to businesses that want to put their branding on them. White-label apps can be customized with enough online branding to make them unique.

There are several benefits to choosing a white-label app instead of a custom development project, including speed to delivery and cost savings. A white label app is typically 1/10th the cost of a custom software development project because the app's backend – how it functions, its actual appearance, or format – is already established.

This means that brands, companies, or individuals can tweak the branding and visual design and turn features on or off to fit their purpose or brand requirements without starting from scratch.

White-label apps are an excellent option for businesses or individuals who want a high-quality product without a high price tag.

If you have no coding skills and are looking for a fast and affordable solution to build extra revenue, a white-label app and AppMachine iOS and Android app development services are the right choice. Become a reseller!

White-label apps examples

Develop an app for a church.
A food delivery app for restaurants.
Replace paperwork done by any type of service person, like a handyman or plumber.

There are lots of ways you can make money with apps. We've just listed a few

The Reasons You Should Use an App Creation Platform#

Are you a professional software engineer with no time to spare? A relatively digital-savvy person with a plan for a side hustle? Or an entrepreneur wanting to grow your business with an app?

Either way, you should consider streamlining your development process through AppMachine. Our no-code app builder is an incredible asset for anyone looking for a quick turnaround and the perfect end result.

Before you know it, you’ll be well on your way to making money from apps.

Through us, you get access to plenty of different app templates and pre-built features as well as a dedicated team willing to give you advice and support. You’ll be able to save money on creating your platform and increase profitability as a result.

Making Money from Apps – FAQs

At the end of the day, there's no shortage of different ways you can make money with an app.

As long as you are dedicated to creating a high-quality platform, networking with your target audience, and carefully designing your value offering… sales will come.

Should you still have questions about mobile app development or how free apps make money, perhaps these answers can help.

Can a free app make money?: Yes, they can! Take Flappy Bird, for example. It was originally a free game available all over the world and became an instant and addictive hit. The owner started placing adverts to monetize traffic and was offered billions to sell it.
And here are several extra ways a free mobile app can make money.
Advertising: display ads to users and earn ad revenue. This can be implemented through various ad networks or by selling ad space directly to advertisers.
In-app purchases: offer in-app purchases, such as additional features, virtual goods, or physical products.
Subscriptions: offer a subscription service that gives users access to premium features on your mobile app.
Data collection: collect user data, such as their location or browsing habits, and sell it to third parties.
Affiliate marketing: promote products and services through affiliate links. You will earn commissions for sales resulting from these promotions.
Sponsorships: receive sponsorship from companies in exchange for promoting their products or services.
What kind of app makes money?: All different apps have the potential to make money. You can develop an eCommerce platform that lists your products and services, or you can gamify your employee’s work tasks to encourage them to be more productive. Either way, you’ll see a return on investment.
FYI, the most popular money making apps categories are:
Entertainment
⁠Social Media
⁠Gaming
⁠Dating
⁠Health
The most popular app categories are games, followed by utilities, then entertainment. So, it's no surprise that the apps which generate the most revenue are also in these categories.
Games, in particular, are highly profitable - whether you are working on iOS apps development projects or Android app development projects.
Here is a list of the most successful apps:
Gaming apps: Candy Crush, Clash of Clans, Pokémon Go
⁠Utility apps: WhatsApp, Skype, Slack
⁠Entertainment apps: Spotify, Netflix, Hulu
How hard is it to make an app?: Depending on what exactly you want to build, it doesn’t have to be difficult at all.
Sign up for free with AppMachine, read our article “How to Make An App,” and start to create an app quickly and easily without the need for extensive computer skills.
How do apps without ads make money?: In-app advertising is generally disruptive to the user experience and therefore disliked by most app users. This is confirmed by Forrester research, which finds that nearly 60% of U.S. smartphone owners who encounter in-app ads find them problematic.
So you can make money from mobile apps in the following ways:
Freemium App - The Freemium model has recently become the most popular app monetization strategy, with 61% of app development companies recommending it.
Subscription-based models are usually best for businesses that offer services that are used frequently, such as music, news, or books. This type of system can benefit both the customer and the company because it provides a service that the customer is likely to use regularly and offers a steady stream of income for the business.
White Label Mobile Apps - If you’ve developed a unique app that solves a specific problem, you might consider licensing your code or white-labeling your app to other companies and developers. White-labeling your app means creating a copy of your existing app but using another company’s branding. This could be an excellent way to generate extra revenue for your business while getting your app in front of a new audience.
Affiliate Programs - If you're a mobile app developer, you can make money through Apple's Affiliate Program or Amazon's Mobile Associates API. With Apple's program, you can earn commissions by linking to Apple Music and iTunes content in your app. Amazon's Mobile Associates API allows Android app developers to sell Amazon merchandise through their app and share the revenue.
Can I create an app by myself?: To be able to build great apps, you don't need to be a programmer. With AppMachine, you can design your app down to the smallest detail, and our low-code platform makes it easy for developers to extend the functionality with their own code. Whether you're a beginner app builder or an experienced app maker, AppMachine is tailored for you.

How to Make Money with Apps through AppMachine

Above all else, to make money with apps, you need to create a quality platform that lends itself to your goals.

Whether you just want to capture and qualify leads or you want to make sales on the software itself, you need to make sure the right functions and CTAs are in place to guide your users down the sales funnel.

This way, you’ll be able to enhance your business offering and expand your reach to make a sizeable profit. Does that sound like something you could benefit from?

If so, then consider checking out AppMachine’s product and looking at all the different resources we have available for you. Our helpful team is always available to point you in the right direction to create an app that’s ready to make money within just a few short weeks.

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