Recent Statista findings reveal that revenue from mobile applications reached $522 million in 2024, and this number is expected to grow further. One can only imagine the possibility of revenue generation in this sector going forward.

However, mobile apps are a dime a dozen in the market. It is, therefore, important to create an app that stands out in the marketplace for all the right reasons. This requires a thorough understanding of the mobile apps industry, strategic planning, and impeccable execution.

But how does one build a profitable mobile app that generates long-term revenue streams? Unfortunately, there’s no one-size-fits-all answer to this question. However, there are certain best practices that can help you develop an app that makes money.

Before that, let’s try and understand what makes an app profitable.

What Makes a Profitable App?

While new apps are developed every day, not all of them become profitable. Only those apps with the ability to solve real-life problems and keep users highly engaged can get there.

For example, gaming apps like Candy Crush Saga and Pokemon Go are said to be incredibly profitable as they’re super engaging, encourage lots of in-app purchases, and show many ads. Other examples include fitness apps and food delivery apps, since these also attract a plethora of users and make good money by offering useful tools and services.

Then you have apps like Spotify, Prime, Netflix, and other news platforms that need to be subscribed to. These work on a recurring subscriptions revenue model, where users need to pay an annual or monthly fee for uninterrupted access to the content. Users simply provide the billing information once and authorize the platform to automatically charge their payment method. This revenue model works well in generating a steady income while keeping users hooked.

Similarly, we have workplace productivity-boosting apps like Dropbox or MS Office that are always in high demand due to their utility at the global level. Social media apps like Facebook and dating apps like Tinder aren’t far behind either. They make money through advertising and sponsored content, which are also highly effective monetization strategies. But of course, this works only with apps that have a wider reach and influence in the digital arena. 

Now that we have a good idea of what makes an app profitable, let’s shift our focus to the how. How can you build a profitable mobile app? Here are a few tips.

7 Steps to Building a Lucrative Mobile App

1. Hone in on a Compelling Idea

When building an app, the first thing you want to do (and get right) is a brilliant idea of why you want to create it in the first place. What is its ultimate purpose going to be? What do you plan to accomplish with it?

Here’s what you need to be clear about:

• What is the mobile app going to do?
• Is it going to solve any specific problem that users face?
• How will it meet the user’s specific needs?
• Who will your target audience be?
• How are you going to make your app more attractive than the next one? (There are more than 2.26 million mobile apps available on Google Play Store)
• How will you monetize the app?
• What platform will you use to build your app?

Once you have the answers to these fundamental questions, you’ll be able to explain your vision to your target market as well as the stakeholders you’re planning to involve or collaborate with.

2. Get a Feel of the Market

Like we said, there are a plethora of mobile apps out there, but not all are making money. Think of it like running a business—researching your target market is a must. You need to understand exactly what you’re getting into to boost your rate of success.

Make it a point to visit app stores often and try to understand the common denominator between the top-performing apps, be it free or paid. Does the app you want to create have anything in common with them? Is there a gap in the market that your app can plug?

Next, research your competitors thoroughly. Analyze their apps to understand what they’re doing right. Find out what unique features your apps can offer to enhance user experiences. Apps like App Annie and Sensor Tower can make your job easier. Your findings will help you gain insights on market trends and user preferences. Use this information to optimize your app’s features accordingly. 

3. Decide on a Wireframe

You’ll need to create a wireframe to bring more clarity to your mobile app idea. Consider it a storyboard for your app. Wireframing tools like Microsoft Visio, Axure, and Picodo can help bring your idea to life.

The purpose of creating an outline for your app is to figure out what it will eventually look like: where icons, menus, and other elements will be placed. You need to know this to ensure that your app is easy to use and user-friendly.

Remember, user experience contributes a great deal to an app’s success. You want to get this aspect right, so feel free to hire a professional app developer for this task. Further, a professional graphic designer can help you get high-resolution skins and screens based on your wireframe.

4. Include the Latest Innovations

You need to be well-versed in all the cutting-edge technologies that make modern mobile apps function as intuitively as possible. So, get your facts about artificial intelligence, augmented reality, virtual reality, and the Internet of Things right.

If you’re still wondering about what artificial intelligence is, you’re in trouble. It’s like asking what ChatGPT is or what is 5G in a world that has been using it for more than a couple of years now!

Whether it is your servers, databases, APIs, or codes, you want to use the most effective and advanced solutions to power up your new mobile app. 

5. Focus on Backend Coding

The most important phase of developing the mobile app, backend coding, will need you to set up your database, APIs, and servers. At this stage, all the elements you want to use in your app should function in keeping with the design. Consider working with an experienced software developer who can code in sprints, i.e., divide the app into several milestones with fixed timelines.

Make sure they keep testing your app throughout the development stage to prevent any wrong turns. Also, you want to sign up for an account with Google Play and/or Apple App Store to showcase and sell your app on these platforms. Act sooner rather than later, as this might take a while.

6. Get Your Monetization Strategy Right

So, how many users do you need to make your app lucrative? Again, there’s no straightforward answer to this. It depends on the monetization strategy, so be careful when you choose between direct sales and indirect sales models. 

• Direct sales model: Your app will be available for download only after a user pays for it.
• Indirect sales model: You start by offering a free download but include certain in-app purchases (advertising, upselling, affiliate links, or sponsorship).

Which one’s better? Again, you’ll really need to consider their advantages and disadvantages to make an informed choice for your specific app. For instance, convincing users to download a free app is easy. And while they will download it, they’ll take their own time to actually buy something on it. So, income generation might take a while.

If you plan to go with direct sales, make sure you give users some solid reasons to buy it without trying it first. Deliver on your promises; otherwise, users will waste no time in uninstalling your app as soon as the subscription expires.

7. Test, Launch, and Market

Once your app design is ready and functional, you want to test your app’s performance rigorously for identifying and removing bugs. Also, check for compatibility issues across various devices to deliver a robust app that performs. Go through every feature as if you were testing it for the first time. Ask your friends and family to do the same for best results. Beta testing is another option that will help you understand how your app will perform once it reaches the target audience. Use platforms like Apple’s TestFlight and Google Play Beta Testing to gather as much qualitative feedback as possible. To launch your app successfully, you’ll need a solid marketing plan. You can choose to do your own research on mobile app marketing and try the various strategies to succeed. Or, you could hire marketing pros to do it for you.

Remember one thing: just like your mobile app will need constant modifying and adjusting due to changing consumer preferences and competition, so will your marketing.

Conclusion

As you can see, building a profitable mobile app from scratch is no mean task. However, a user-friendly design and a good grasp over the latest technologies as well as digital platforms will hold you in good stead. Remember, user interface and user experience are pivotal in keeping users engaged for the long haul. Hopefully, this post has given you a clear idea of how to get these important aspects right and build an app that generates long-term revenue streams for you. 

nandbox App Builder

A profitable mobile app generates constant revenue by utilizing effective monetization tactics such as in-app purchases, subscriptions, and advertisements. Building such an app necessitates a focus on user experience, scalability, and interaction. Businesses may use the nandbox App Builder to develop fully functional, revenue-generating apps without having to write code. The platform includes in-app purchases, push alerts, and personalized user experiences, all of which are critical for increasing user retention and revenue. Companies may use nandbox to quickly develop, publish, and monetize their apps, converting unique ideas into viable ventures while reducing development costs and time to market.