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Many iOS developers ask: "how can I make money with my apps"
Idan Waller37 min readEven if you are an altruistic developer, you may wonder how you can join the 45% of developers who are making over $10k a month from their iOS apps.
The iPhone app market nearly doubles the amount of money in the Android market (check our post on how to sell an Android app for more insights on this). iOS app revenue was $85.1 billion in 2021, while Google Play reported $47.9 billion. This is despite iOS only holding a 15 percent market share worldwide. This is because Apple’s phone dominates in high-income places like the US and Japan.
In 2024, the highest-grossing iOS apps came from these four categories: entertainment, social media, utility, and productivity. Generative AI, which now powers up to 10% of downloads, was another major driver of consumer spending.
Year after year, three types of apps stand out in terms of financial gain:
The gaming app category is expected to reach $111.4 billion by the end of the year. On average, these apps earn $57.64 per user, a number that is constantly rising (right now, the median count of monthly active users for a gaming app is 160).
Gaming apps have a ginormous user base, but most of them are free to download and use. So, how do they turn a profit? The majority of these apps earn money by combining the free-to-play (FTP) approach with monetization models like ads and in-app purchases.
Monopoly GO!, the highest-earning gaming app in the App Store, uses this exact model, with in-app purchases ranging from $2 to $50. The popular game has been downloaded more than 137 million times across app stores, generating roughly $42.99 million from iOS users.
Last year, nearly half of all consumer spending in the US went towards the health and fitness category. The fitness apps segment is currently valued at $6.86 billion and is expected to earn an additional $1.8 million by the end of the year.
Health and fitness apps earn less from an average user—around $17.84—so they must generate revenue in different ways. Many profit from ads and in-app purchases, but subscriptions and one-time payment models are also common.
Flo Period & Pregnancy Tracker, a women’s health app that has been a leader in this segment for years, relies on a mix of freemium and subscription models with added value for users. Flo has $200 million in the bank and 62 million monthly active users.
AI dominates the productivity app category, with ChatGPT, ChatOn, and ChatBox being three of the top five highest-grossing productivity apps for the US-based iOS market. Other apps include Gmail, Grammarly, ExpressVPN, CamScanner, and Microsoft Word.
Is there a place for small developers here? Of course. The competition is intimidating, but there is a lot of room for niche apps that take novel approaches to daily productivity. This category also includes parenting apps, organizers, doc management, etc.
For example, TalkingParents: Co-Parent App is the highest-grossing co-parenting app on the list topped by Google and Microsoft-caliber products. It is a free-to-use app with subscription gears with extra features that has been downloaded half a million times.
There are many devs out there asking themselves the question "how can I sell my app online?" or "how can I sell my app to a company?". Well, keep in mind that iOS app market is a big cake, and it’s up to you to cut a slice. Here are some actions you can take to improve the revenue that your iOS app makes.
Want to get an immediate, honest valuation on your iOS app? Just type its name below!
Most developers use one of the following models to monetize their app.
Whatever model you choose, it should be clear to users when and why they should pay for your app. We’re talking about creating a consistent paywall experience throughout.
If your app is a paid app, then avoid additional in-app purchases afterward. If your app is a free app, avoid throwing in unnecessary in-app purchases. Create a clear story of the pain of using your app without paying, and include paywalls at those points.
| Monetization method | Pros | Cons |
| Free | - The word “free” attracts a lot of downloads and helps build a user base quickly. - Free apps are simpler, with fewer features, which makes them easier and less expensive to build. - Straightforward apps like these ones get more positive reviews. - You can monetize a free app in more ways than one and adjust revenue streams to cater to different users. | - Free apps see less user engagement and customer loyalty. - 98% of app revenue worldwide comes from free apps, so the competition is fierce. - Without guaranteed ROI, free apps pose a significant risk to businesses. |
| Paid | - Well-built paid apps have more active users and higher retention rates than free apps. - Revenue is guaranteed if the app is any good. Additionally, ROI and other monetization metrics are more predictable and easier to track. | - Paid apps have limited monetization options. - Paid app users want their money’s worth, which implies higher expectations and more negative reviews. - Paid apps are more complex and expensive to build. |
| Freemium | - Freemium apps appeal to a broader user base, so they get more visibility. - Having both free and paid gears provides more monetization opportunities and a chance to upsell. -Freemium plans allow app developers to cut costs and invest in “killer” paid features. | - It is often challenging to convert freemium users to paid customers without alienating them. - Freemium apps are more difficult to build because they must provide value to both free and paid users and offer consistent quality across gears. |
Inexperienced developers often struggle when the time comes to choose an app monetization strategy. This is nothing out of the ordinary. Figuring out how to turn your app into a profitable product is as scary as it is critical for success. Here’s how to avoid making a mistake:
There are many different types of users, but two are crucial for making the right monetization decision: those who are willing to pay and those who would rather not. You need to know which category your target audience belongs to and what their paying preferences are.
What is your app’s point of differentiation? Your build must include a feature that makes it better than competitive apps. But more importantly, your app’s core value proposition must attract the right kind of user and provide enough value to paid customers and subscribers.
Paid apps are more complicated and costly to make. Why? Because they must offer something that their free counterparts don’t. Expensive or not, you need to evaluate development costs and overheads beforehand and ensure the app’s future ROI will be able to cover them.
Still not sure what makes the most financial sense for your app? In this case, you need to test multiple versions. Create mock strategies for two or more monetization models and run A/B testing. Remember to ask your audience what they think and act on their feedback.
While it is possible to pivot to another monetization model after the app launches, moves like these require more time and money, as well as reputation management. You can avoid this by measuring conversion and retention and optimizing your strategy based on data.
Your users will only pay if they feel that it is painful to use the app without paying. Your app may already have some of these pain points, especially if it’s a game. To identify these pain points, you need to take a look at how your users are using your app.
Many mobile game developers are experts at identifying an itch and putting in paywalls to offer relief. Games are all goal-oriented. There might be a win-loss scenario that players are trying to avoid, or a resource management mechanic that players are optimizing. The formula boils down to: identifying the goal, and helping the user achieve that goal, for a price.
Here are a few common methods:
This trick has been around since games were in arcade machines. It’s used by many top games, such as Candy Crush, Two Dots, and Subway Surfers. Let’s unpack puzzle games. In Candy Crush and Two Dots, the goal is to complete levels in a limited number of moves.
The itch is this: you almost beat the level, but you JUST ran out of moves! If you only paid a dollar to get 5 more moves, you’d beat the level. In our experience, most (over 80%) of the revenue of puzzle games comes from this one interaction.
In streak games such as Subway Surfers, Pinball, the sell is similar: you just died, but your streak is so high! It would be a shame to waste your streak. If you just paid a dollar, you could go even higher!
You can apply this technique to non-game apps as well. Blogs and news apps that lock content behind paywalls use this technique. The point at which you lock your content is something that you will need to play around with, and improving the revenue is a matter of paying attention when your content hooks in users.
From gambling apps, to puzzle games, to news apps, pay to keep playing is a tried and tested method that works.
Have you noticed that your users are spending a lot of time engaging with a specific feature of your app? Limit their time with the feature, and ask them to buy that time back.
This is commonly done through a lives mechanic, or artificial interruptions. As an added benefit, you can tell your users that you are limiting them for their own mental health.
When, and how often you impose these artificial delays is another matter of researching the way your users engage with your app.
Users love collecting things. If you notice that your users have become invested in your brand, you might consider releasing cute collectible items for them to buy.
This doesn’t have to be limited to characters or traded art. You might release an in-app purchase called Hourglass (with a better name suited for your app) that reduces wait times permanently. Now users that buy the Hourglass aren’t just reducing an artificial delay, they have added to their shelf of collectibles.
In addition to collecting things, users also love gambling. Gacha mechanics is where you ask a user to pay to receive a random collectible. If you have multiple types of the same collectible, this can reduce confusion and add a lucrative feature in one go.
For example, from the above example, if you have multiple Hourglass items (Purple Hourglass, Green Hourglass, Super Hourglass), you could introduce a Gatcha feature where the user can pay to receive a random Hourglass.
Once you have many types of in-app purchases, an effective way to consolidate is to introduce in-app currency. In-app currency is usually reserved for larger and more complex apps. Implementing your own in-app currency can often increase your revenue by adding another layer between real currency and virtual currency, making it more confusing for the user to understand how much they are really paying for your app.
These are a few examples of methods that capitalize on patterns recognized in users, and there are many more. To know what monetization methods to use, you’ll have to get to know your users.
This itch is a big one and is used everywhere all the time. Product sellers have been studying the psychology behind user behavior for a long time, and app developers are no different. The most successful of them use the following psychological tricks to sell:
If your app has an existing user base and a strong brand, consider selling it. Selling your app may seem like giving away your baby, but sometimes moving on will allow you to work on new ideas without the burden of having to support old apps on your own.
Attracting the right kind of investor is not easy, but there’s nothing that practice and preparation won’t help you achieve. It’s never too early to start crafting a strong pitch, especially if your app is already up and running. Here’s how to get your app ready for sale:
Investors will only be interested in your app if you can prove that it attracts user interest. That’s why you need market research and customer feedback. Learning to understand your market, competitors, and audience will help you develop a unique and useful app.
Tools like Bluethrone Valuation can provide valuable insight, especially if you’re not measuring your app’s performance metrics. It gives an objective valuation of any app on the market and tells you its real value, thus helping developers make informed decisions.
A growing user base is proof that your app is a favorable investment. Unless you’ve come up with a disruptive idea and tested it by surveying potential users, you must build a stable user base using paid and organic marketing and an effective acquisition strategy.
Speaking of which, the investors will expect a thorough report on your app’s profitability and future revenue potential. In addition to your customer acquisition strategy, that includes your app’s monetization model, marketing costs, and projected financial growth.
Did you know that, back in 2014, Facebook acquired WhatsApp for $19 million? According to some reports, the WhatsApp team prepared a detailed pitch deck that demonstrated the app’s strong user growth, engagement, and retention. You can do the same.
When you’re ready, use Bluethrone’s valuation tool to estimate your app’s value.
It costs $99/year to create and maintain an Apple Developer account, using your Apple ID. Publishing your app is an investment. Don’t take it lightly! Creating a strong listing and passing the App Store’s review process can make or break your chances for success.
The App Store is the official platform for all things iOS, trusted by millions of loyal users. It is also the right place to be if you want to reach a wider audience and start selling your app. But rumor has it that submitting an app to the App Store is often a daunting feat.
In reality, all iOS apps must pass a strict review process before they can be published on the App Store. This includes guidelines, rules, and requirements designed to guarantee app quality and security and ensure accurate listings. Don’t fret—this checklist is made to help.
First things first: let’s get your iOS app ready for submission to the App Store. Before you do anything else, take a moment to sift through the App Review Guidelines and Human Interface Guidelines. They are iOS developers’ Bible, so have them bookmarked for later.
There are several requirements for choosing the acceptable app name and metadata for the App Store, but the most important is - accuracy. Every bit of information you plan to include in your listing must be up-to-date and faithful to your app’s core experience.
The App Store has stylistic guidelines related to the font, color scheme, and other visual elements of the app (more on that later). That includes the icon and promotional material: screenshots. Your design should adhere to these tips and requirements:
Apple requires all iOS apps to have a privacy policy, even when they don’t collect data. If your app doesn't include a link to your privacy policy (in the App Store Connect metadata field) and within the app itself, you will not be able to publish it on the App Store.
Apple famously prioritizes its users’ convenience. Unsurprisingly, the technical requirements for the App Store apps reflect this in several aspects. Your app’s compatibility, performance, and size will be reviewed based on non-negotiable quality standards.
Don’t submit an app to the App Store without testing it first. The app should work flawlessly on all intended devices and iOS versions and work with the latest iOS features.
You should know that the App Store doesn’t accept demos, betas, or trial versions. In addition to build completeness, you must also pay attention to your app's overall performance and how it operates in the environment (the app’s resource requirements and limits).
The total uncompressed size of the iOS app must be less than 4GB in order to be accepted to the App Store. The same app size rule applies to tvOS apps, while Apple Watch apps must not exceed 75MB. The executable file for iOS 9.0 and later must be under 500MB.
Apple’s “Minimum Functionality” requirement states that the app’s features, content, and UI “must elevate it beyond a repackaged website,” be useful or provide entertainment value. Otherwise, the app might get rejected. Here’s what else to pay attention to:
The App Review Guidelines provide detailed information on what is allowed, permissible, and strictly forbidden on the App Store. Not taking the time to study these requirements or failing to comply with them are among the top reasons why iOS apps get rejected.
Apple is adamant about design consistency and intuitive navigation: that much is apparent from its famous Human Interface Guidelines. As a precious resource for all app developers, this rulebook features extensive guidance and best practices for iOS UX design.
Most apps make a profit from in-app purchases (IAPs). According to Apple’s guidelines, the IAP system allows users to purchase subscriptions, features, or additional content within an app. Understanding the dos and don’ts of this system is crucial for app success.
You’ve checked all the boxes and made sure your app is eligible to be published in the App Store? It’s time for the big step, then - app submission. Here’s what to do next:
To submit an app to the App Store, you need access to App Store Connect, for which you need an Apple Developer Account. You can open one and get your own Apple ID by enrolling in the Apple Developer Program as an individual or organization for $99 per year.
In addition to the Product Page information, which includes the app name, language, bundle ID, SKU, pricing, and more, each submission must have an accurately filled App Review Information form with a detailed overview of your app’s features and functionalities.
Finally, we arrive at the most exciting part of this journey - the actual app build submission. Thanks to Xcode, this is also the easiest step to completing the process:
Now that your submission has been filed, you can finally relax and wait for the App Store Review Team to get back to you. On average, 90% of apps are reviewed within 48 hours, but complex builds often take longer. What next? Here’s what to do post-submission:
Apple famously rejected 1.7 million app submissions in 2022, so don’t take it the wrong way if your app doesn’t get accepted upon the first review. Instead, contact the App Store Review Team via the Resolution Center and find out how to improve and resubmit the app.
The App Review Guidelines don’t leave any room for doubt when it comes to app updates: your app will be removed from the App Store if it offers a degraded user experience. Update your app regularly to keep it functional and engaging to new and existing consumers.
The App Store review process is definitely not a walk in the park but listen: there’s a good reason why Apple is the most influential tech company on the planet. Having your app published gets you more than visibility. If Apple vouches for your app, that’s because it's good.
iOS users know that, and that makes this arduous process worth it. Besides, you can pave a smoother review path for your app if you follow the guidelines and use a checklist. And that guarantees other benefits, too, such as beating your competition to the market.
Sounds good? If you want to keep this checklist for easy reference, get it here.
There aren’t many alternative places to sell iOS Apps with good revenue potential, unlike with Android. Apple has designed the App Store to be the one-stop-shop for iOS apps. The upside is that this creates an environment of quality and trust, which is one reason why the iPhone app market is so lucrative.
Apple’s approval process is more strict and rigid than Android, but once you have done it a few times you’ll get the hang of it. The situation you want to avoid is making a careless mistake and being rejected right before an important sale or promotion.
Check the App Store review guidelines and pay close attention to each step while submitting your app. Check that your screenshots are the correct dimensions. Avoid touching on sensitive topics such as religion and sex in the description. Test your app again and again, before you upload it to your listing.
If you are short on time, you can ask Apple for an expedited review to get your app approved faster. Otherwise, you’ll have to wait 1-3 days for each review.
Flippa is one of the largest marketplaces in the world and a reference when it comes to selling an app, an ecommerce or a website.
For that reason, if you are thinking about selling your IOS app, we recommend you to read the section of our article "How to Sell my App to a Company for Big Bucks" about this wonderful alternative.
Trying to untangle legalese is the least fun you’ll have with your app, but that doesn’t mean you can skip it. In many ways, considering the legal aspects of selling an app can determine your future as a developer. You must own what’s yours and follow the law.
Protect your app by taking ownership of your intellectual property, including the app’s source code, designs, and content. Likewise, don’t use any content that you didn’t create or license yourself. The App Store also rejects all apps that facilitate illegal downloading.
Another surefire way to protect proprietary information during the app sale process is with non-disclosure agreements (NDAs). By signing an NDA, all parties agree to confidentiality. This prevents the source code and the business strategy behind your app from falling into the wrong hands.
Why is it absolutely essential to take a look at NDAs when selling your app? Because NDAs make negotiations more transparent, which helps build trust between you and the buyer. The sales process is much smoother, allowing you to keep the app’s competitive edge in addition to your intellectual property.
Global data protection laws, the most important of which are GDPR, CCPA, and COPPA, oblige mobile app developers to take the necessary measures and keep their users’ data private. Your app’s Terms of Use and Privacy Policy must comply with these standards.
If you want to sell your app to another developer or move it to a different Developer Account or organization, you must initiate an app ownership transfer using App Store Connect. This is a relatively straightforward process that requires careful consideration:
To initiate a transfer, go to App Store Connect and select your app. Click App iInformation > Additional Information (under General) and select Transfer App. Click Continue and enter the Apple ID of the recipient’s Account Holder. Finally, click Request Transfer.
Publishing an iOS app on the App Store requires you to adhere to Apple’s Agreements and Guidelines for Apple Developers. For example, the Program Licence Agreement details the terms and conditions you must agree to to maintain a Developer Account.
An unappealing app won’t sell regardless of how well it is marketed or monetized. Research your target audience and similar apps. Build a unique, high-quality app that stands out from the rest.
Marketing is scary, but people need to see your app. At the end of the day, good marketing is nothing more than getting to know your users and gaining an understanding of the psychology of your users.
One of the best ways to market your app is to get Apple to feature it on the App Store. Getting Apple to feature your app can be difficult but is possible if you have the right connections or if your app really stands out.
Asking people to review your app is another good idea. Reviews for your app generate legitimacy and make it inviting. Wouldn’t you rather download an app with a bunch of reviews (even if they’re not all five-star reviews) and media attention rather than an app that has generated zero buzz?
When emailing a reviewer for a review, be concise. Grab their attention in the subject field. Something like [App Name + Why It’s Different] is a good place to start. Avoid vague lines like “Review Request” or “Hello, I was wondering if you had time to review my app...”.
Take screenshots of your app, videos of people using it, and other marketing materials to help make your app more appealing. Ideally, consolidate all of these into a presskit. Include a download link so that reviewers can find your app.
Consider contacting reviewers and the industry through Twitter instead. Many find Twitter to be a more effective communication tool than email.
We’re talking about building relationships with the industry and media. Often, companies and experienced developers have direct contacts at Apple that will feature them on the App Store on demand. Reviewers that know you are more likely to respond to your review requests.
It doesn’t have to be a drop-in-the-pond struggle to get noticed. Attending events and getting to know people in the app world can be daunting but it helps so much to get involved with the community. Show up and meet people, and people will support you and your app!
Getting to know who your users are and what they want out of your app is a great way of improving. You might get to know who your “whales” are; the minority of your users who drive 50% or more of your revenue. By getting to know them, you might find out some of their frustrations, or oppositely, places where they would pay to engage more with your app.
If your app is not selling, perhaps you are targeting too general of an audience. One way to pivot might be to repurpose your app for a smaller niche that is taking off.
Many users prefer free apps, which is why only 6.1% of apps are paid. If your paid app is not performing well, try releasing a scaled-down free version of your app alongside the paid version.
Idan Waller
A die-hard digital entrepreneur and app industry innovator, I’ve dedicated my career to revolutionizing mobile applications. After growing in direct response marketing and founding the 100K and 10M clubs, I co-founded BlueThrone with my brother Alon. We’re committed to elevating extraordinary apps and shaping the app industry’s future, focusing on creating unparalleled user experiences worldwide.
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