Droidcon Day 1: Earning money from apps in Android Market

The first day at Droidcon was a barcamp in which the community proposed talks and presentations were free-styled. There were some common themes that emerged, here's one of them.



It's tougher to make money selling apps than you think
Forget the hype, the truth is that it's actually very difficult for developers to make serious money selling apps, unless you're a game. The average iPhone app earns around $6000 over a two year period for its developer. With its bias towards free apps and high barrier to first purchase (Google Checkout), Android is even tougher. Apps featured on the Android Market homepage generally earn around $400 per day.

However, it's not all doom and gloom. Some apps are doing very well and generating serious money for their developers, especially games. Developers are increasingly looking at innovative ways to generate revenue from their apps. Here are two such methods:

Freemium
When Rovio came to publish Angry Birds on the Android platform they decided not to charge for the app, but to include advertising within the game. Angry Birds sells for 99p on iTunes (at time of writing), so we're not talking about a high price point here. The strategy worked, with Angry Birds receiving 1m downloads on Android on day after release. Some estimate that it might now be up to 10m downloads on Android.

Location based ads
Currently, only Google makes money out of Maps. How can developers make money from location apps? CloudMade have created a location-based advertising platform, which replaces Google Maps and will deliver advertising to any application that uses it.