The Revenue Model Key to Developer Success
July 8, 2014 | ComboApp Team

The Revenue Model Key to Developer Success

One may assume the key to app development revenue and success comes from advertising or paid downloads. Not only is that statement incorrect, but both are the two least successful profitable ways of going about app development, according to a report by Developer Economics.

What is the key to development profitability and success? Contracting. The article states that contracting is the most popular revenue model of app development. Contracting is associated with the second lowest probability of making a loss.

To all of your developers out there reading this – get on your contract game!

 

The next tier of app development success comes in the form of in-app advertising, paid downloads, in-app purchases and freemium. Unfortunately paid downloads, you have been named the least successful revenue model so you may want to step your game up!

Check out the list of revenue models listed from highest percentage of developer usage to lowest:

 

  • Contract work – 36%
  • In-App Ads – 35%
  • Paid Downloads – 32%
  • In-App Purchase – 30%
  • Freemium – 26%

…the losers may not wish to be named, therefore you should read more about it in the article linked above. Shockingly, 80% of developers have reported that less than five percent of their users made even one single in-app purchase, according to a VentureBeat report.

The goal is to leverage mobile to increase profitability. The bottom line here is that developers with fascinating app ideas need to find the best revenue model for it – are you using the right one?

 

 

~Abby Cin, PR Writer

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