Today developing mobile apps is a profitable and quite lucrative venture. Established firms are not alone in this space. The barrier to entry for an individual to enter this industry is quite low.Thecurrentscenariois encouraging most enthusiasts to join the bandwagon with new ideas flooding the appstore’s almost daily. The following shows how individuals are flocking to the mobile computing market developing new apps for mobile platforms.
Many developers currently approach an appstores to get their apps out to the public. Currently with this model the developer splits the revenue with the appstore owner. Typical commission rates are around 30% for the appstore and 70% for the developer. It is often very difficult to generate any sort of significant revenue from existing appstores. The competition in this space has grown exponentially and many apps stay buried at the bottom of these marketplaces. Getting your app discovered today requires marketing, sales, and business knowledge. Many freelance developers lack such skills or just don’t have the time to put into it since it is more of a hobby than a full time job. Many of these freelance developers would benefit greatly from being able to sell their code in an open market like sellmyapplication.com to interested investors who could use it to build up their current portfolio or build a strong marketing plan around the app.
There are additional ways to gain consistent income through your application. If the content of you app is good, then users might come up with subscription based upgrades. Here, the model is very well intertwined with advertising model. For example, have a look at Grooveshark app, which is a popular music library. In this app free users are flooded with ads and an upgrade to VIP PASS can avoid these ads through paying the subscription fee. This is the way a developer can benefit both free app and paid app.
A recent study revealed an astonishing fact in this aspect. The ad revenue generated through free app is not as lucrative as selling the application code itself. The following slide show can offer you a great overview:
The concept of selling virtual goods is currently lucrative business model. The latest apps on this aspect are huge success. For example take the Facebook app FarmVille, it is currently has 82 million players worldwide and standing tall in the virtual goods selling model. This app is available at free and paid versions. This FarmVille was bought out by the famous EA games for 400 million dollars. The social gaming industry is currently making one billion dollars every year and expected to reach 4 billion by the end of 2013.
We are going to witness more dramatic changes in the mobile web space and this is going to overtake desktops by 2015 according to Morgan Stanley report. This is the right time for every developer to initiate a foothold in one of the fast growing segments of technology today.