If you ever wondered how to make money on an iPhone app, we've laid out the most popular ways of making money.

1. 7 ways to make money
on iPhone apps
Brian Cauble - CEO, Appsolute Genius
Mobile software development was really ramped up two years ago with the
introduction of the App Store by Apple. Since that time, we’ve seen massive
successes like Tap Tap Revenge with well over a million dollars per month in
revenue. We’ve also seen reports claiming many developers make very little on
their apps. When I talk with customers, they often struggle to understand what
options they even have for making money on apps.
So, to answer the question “How do I make money on my app?”
1 Charge: You can charge
between $.99 and $999.99 for
per click) or PPM (pay per impression).
With PPC, you are paid each time a
your app and you must charge in $1 user clicks on the ad. With PPM, you
increments. So, $2.99 is an acceptable are paid for each 1000 views of an ad.
price, but $3.00 is not. Apple takes Apple does not get a share of this type
30% of every purchase, while you of ad revenue. Keep in mind, however,
receive 70%. You should strongly that Apple will be releasing its own
consider your marketing strategy in (interactive) ad network this summer
order to maximize your ROI (return on called iAd.
investment). Apps are like any other
product, in that you must market them
to have success. 3 Sell your own ads: The
upside of this approach is that
you get all the revenue without sharing
2 Use Ads: Put ads from AdMob
or another ad provider in your
it with anyone. The downside is that
you must create a way to serve ads
app in order to increase revenue. and find your own advertisers. All of
There is no rule against selling an app that takes time away from the rest of
which includes ads, but users generally your business. This makes most sense
expect the app to be free if it includes if you are experienced with selling ads
advertising. Most ad providers have two already. Magazines, newspapers, and
options for making money: PPC (pay television, for example, have been
doing this for years.
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2. 4 Lite & Paid version: You
can create two versions of your
6 aSell your web app: If you
have web app like Weight Watchers,
application: free/lite or paid. The free
which charges a subscription, you can
version is often limited in features and
restrict your mobile app to subscribers
used to convince customers to buy
only. This exposure will bring new
the paid version. Often, games are
customers to an existing product. Some
released first as a lite version with only
people may never consider using a
a few levels available. Then, a paid
web app unless there is a mobile app
version may be released with many
available as well.
more levels included. This approach
works best if your lite app gives the
user a simplified version of the full
app and keeps them wanting more.
7 Give it away: What? Why
on Earth would I pay to create an
Customers that have a good experience app, then just give it away? The answer
with the free version will be much more is that your app serves as marketing and
likely to buy the paid version. Keep branding for your company or products.
in mind, however, that Apple requires Sherwin-Williams offers an app which
the lite version to be a fully functioning allows you to match paint colors to any
app. It must do what you promise and selected color from a photo, then gives
it must have a useful functionality. For you all of the details of that particular
example, a lite alarm clock that doesn’t paint color. Obviously, they hope you
actually go off unless you purchase the run to the store with that information
paid version is not acceptable. in hand to buy their paint! When you
compare the cost of a good app to a
5 In-App purchase: Your
app can offer additional content
television commercial, you’ll realize that
apps can have a great marketing ROI.
or features with an in-app purchase. For
example, you could sell new ringtones
fon an alarm or 10 new levels for a
game from right inside the application.
The same $.99 price tiers apply, as well
as Apple getting a 30% share.
© 2010, Appsolute Genius | All Rights Reserved | www.appsolutegenius.com Page 2

3. About Appsolute Genius
Mobile “Apps” have very quickly become a driving force in technology, advertising, and
marketing. Appsolute Genius was founded to help you create the mobile apps you need,
while giving you sound advice about the rapidly changing mobile space.
Appsolute Genius services include consulting with clients to understand the right mobile
options for them. This may include choosing the correct mobile platforms (iPhone, Android,
mobile web site, etc.), exploring possible business models, and learning about the mobile
software development process. We focus on delivering the best design possible while
working within your budget and timeline.
About Brian Cauble
A true entrepreneur at heart, Brian co-founded Appsolute Genius to help companies create
great mobile products and continually push the boundaries of this new technology.
Having been involved in software development for over 10 years, Brian has seen exactly
how to deliver great software. He knows how to guide clients so that their projects are
successful and avoid the common mistakes so many companies make with software. Brian
earned his Masters in Electrical Engineering by attending the Information and Engineering
Management program at the University of Alabama at Birmingham (UAB). He also earned
his BS in Electrical Engineering at UAB.
© 2010, Appsolute Genius | All Rights Reserved | www.appsolutegenius.com Page 3