There’s a myth out there, that once you build a Mobile App, you will make a lot of money.   You hear media stories about simple looking Apps like “Yo” being valued at five to ten million US Dollars.  You hear many other stories of other App Makers making a lot of money.

Those stories belong to a lucky few.

The more general story is that of a failed app, an app that doesn’t get much traction and doesn’t make money.  The independent developer, or some small startups have big dreams and ideas, but a majority just don’t make enough money to produce a sustainable business.

It is extremely competitive out there.  In the Apple iTunes store, there are over 1.2 Million Apps.  And we aren’t even talking about the large number of Android Apps out there.  Years ago, it was easier to make an impact.  Now, you have to compete with so many others who have your same idea.

Your competitors have extra advantages too.   There are many competitors out there making it difficult to break out, and some of your competitors are backed by a lot of money, with more developers, and more resources to market and advertise.

If the Owen Goss Apple App Game Revenue Study is any indicator, 80% of the developers make 3% of the revenue, while 20% of the developers make 97% of the revenue.

Most of the mobile app developers do not make enough money to make a sustainable living on this.

In the same study, they looked at the number of developers per app.  Over 93% had five or fewer developers per app.

Dave Addey does further analysis and says that 80% of the apps in the study has a lifetime revenue of $288 per app.  19% of the apps gets around $24,696 per app.   And 1% of the apps earn about $269,230 per app.

So is there any hope for the independent and hopeful developer or entrepreneur?

That will be the topic of a future post.


How Much do Mobile Apps Make? Most Apps Fail.
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