How an App Makes Money

If you want to build an App that can make real money then you need 3 things.

First, you need a 6 or 7 Figure Idea, then you need an App Development Strategy (more details below) and third you need a monetisation mechanism to generate money.

So let’s get started and go through the process of making an App that can actually generate an income that’s reliable and consistent…

As I mentioned above to build and publish a profitable App you need to have 3 components in place. (No need to learn to program, I’m going to assume that you have no programming and coding skills, but even if you do this post still be very valuable to you)

The 3 pillars of a profitable App are:

  • 6 Figure Idea
  • App Development Strategy
  • Monetisation Mechanism

These 3 components are vital to building an App that can generate real money.

If you miss any of these 3 components then you are going to face some major issues down the road.

But if you implement these 3 components correctly then you will be increasing your success rate by over 100X and that’s not even an exaggeration.

I’ve worked with 100s of App owners who have Apps for all kind of markets and I can tell you for a fact that if you just follow what you learn here and use it to build your own App, you are going to be ahead of 95% of App owners out there!

After you have these 3 in place correctly you would be able to unlock the power of mobile apps and how they can change your life forever!

6 Figure Idea

You might already have an App idea and maybe that’s the reason you are reading this post…

…or maybe you are just wondering if you can make money with an App…

Either way, you are in the right spot!

To build a profitable App you need an App idea, but the mistake most App owners make is that they just go with their initial idea and don’t refine it to make it match the users’ real and existing needs.

If you haven’t decided on your App idea then In this article I go deep into how you can come up with App ideas that can grow really big.

What’s a 6 Figure Idea?

A 6 Figure Idea is a well-researched App idea that has the potential to generate $100,000 or more per year in revenue.

Most of the ideas that we come up with don’t have the potential to grow this big and this is something that you need to pay extra attention to.

To tweak your current App idea or to find an App idea that can hit 6 figures and beyond, I recommend joining my 7 Day App program where I explain the App idea discovery and research process in details.

App Dev Strategy

After you have decided on your App idea it’s time to build it.

If you’ve ever looked for a way to build an App, you probably know that there are many ways to do so.

Some are super time and energy consuming like learning how to program Apps and some others are way easier.

I have a guide on the best strategies to build an App which you can read here.

If you are serious about building your App then pay us a visit at ZeroToApp.com where I reveal the secret strategy I use to build Apps for both iOS (iPhone) and Android in just a few hours without any technical skills.

Super Tip:

Building your App is an easy and fun process.

I highly recommend spending enough time researching your App idea and learning more about your market than thinking about building your App.

There are many strategies that you can employ to easily build your App and publish it but if you get your idea and market wrong then there would be no results.

Conversion Mechanism

After you have built and published your App then it’s time to monetise your users. (Turn them into dollars so you can make your App better for them and grow to the next level)

The reason that the monetisation comes second is that first, we want to be focused on building a great app that solves a problem for the users.

If we focus too much on monetisation at the beginning then the chances are that we aren’t going to build an App that’s very pleasant to use.

The modern Apps should be focused on solving the users’ problem as that’s how they are ranked on the store.

This is great news as the crappy and low-value Apps are going to lose and our Apps will win big.

There are many ways in which you can monetise your Apps and implement monetisation mechanisms.

Picking the right monetisation strategy is very important as each strategy and mechanism depends on who your user base is and where they are from.

For example, a monetisation mechanism that is implemented in an App that serves parents in the US is very different from a mechanism that’s targeted towards students in India.

You can monetise your App in many different ways and as long as you are solving a problem for the users then you are going to get results.

If interested then don’t forget to join me at ZeroToApp.com

3 Pillars = 6 Figure App

Now that we had a quick look at each component of a successful and profitable App then it’s time to see how they come together to generate the results which you want.

To make it simple I’m going to use an example that’s going to show you what’s possible when it comes to building and publishing mobile Apps for Android, iOS or both.

Let’s imagine that we have an App that’s going to help parents to stop their baby from crying.

If we build a simple App around the topic of “How To Stop a Baby From Crying”, we will have a great chance that the users who are looking for such a solution will find it as the demand for this topic is very high.

Also, picking a topic like this will result in way more downloads as the users are actively looking for a solution that the App can solve.

Now if we can generate 100 downloads per day, (This is a very small number in the world of Apps and you should be able to achieve it easy) then The math is going to be:

100 Downloads per day X 365 Days = 36,500 Downloads per year

Now, if we offer an In-App Purchase upgrade in the App to access more features (Could be a library of more white noises that’s proven to stop babies from crying) at the price of $4.97 per month then the math can look like this:

Let’s assume that we would do a decent job at converting the users and get 5% of the users to upgrade and pay for the In-App Purchase subscription

36,500 X 5% = 1,825 Subscribers

1,825 Subscribers X $4.97 Per Month = $9,070 Per Month In Revenue

$9,070 X 12 months = $108,840 In Revenue Per Year

You can see that this simple App can easily replace your job.

Not to mention that this is going to be an autopilot revenue stream!

Side Note: Of course some people are going to cancel their subscription and some more people are going to join due to the growth of the app but to make the math simple I decided to ignore those numbers.

This example shows you the numbers behind an App that generated $100,00+ per year.

The great news is that if you own an app like this then the value of the app itself is where you’ve created real wealth!

Usually, the value of the App is calculated by:

Earnings of the App per year X 5

Building and publishing a successful App is not a complicated task.

You just need to know the process and the right steps to get similar or even better results.

After working with 100s of App owners I can assure you that building a successful App is something that anyone can accomplish, but it all comes down to taking action.

Unfortunately, most people never take action and as a result, nothing changes for them…

That was the main reason which motivated me to create ZeroToApp.com so more and more people could get their share from the exciting and growing world of Apps.

Remember…

You are just one App away!

Cheers,
Hooman

Simple App Built In 2 Days Makes $2,491 Per Day

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