How to make money from an app: Steps, costs and strategies

Published Tuesday 4 November 2025

Table of contents

• Why people like the app business
• Can you still make money from an app?
• App monetisation strategies
• Realistic revenue expectations
• Costs of developing an app
• The process of building an app
• Marketing your app
• After launch
• Managing your app business finances
• FAQs on making money from apps

Key takeaways

• Focus on building a minimum viable product (MVP) with only one or two essential features to keep development costs manageable and test market demand before investing in additional functionality.

• Choose a monetisation strategy that aligns with your target audience, whether subscription models for business apps (£100-500+ annually), freemium models for consumer apps, or advertising revenue for free applications.

• Make changes during the discovery phase of development rather than later stages, as modifications become ten times more expensive with each subsequent phase of the development process.

• Monitor user behaviour and app performance after launch to identify popular features for enhancement and unused features for removal or better promotion, ensuring your app evolves based on real user data.

Why people like the app business

App businesses are popular because they solve problems once and sell the solution repeatedly. Apps automate everyday tasks like checking weather, managing projects, or identifying songs.

App businesses are popular because they:

• keep costs low by adding new customers at little extra expense
• scale revenue by serving many users at once
• generate ongoing income with recurring payments

Can you still make money from an app?

Yes, you can still make money from apps. Today, most consumer apps succeed by reaching many users and offering affordable pricing.

Here's the current pricing landscape:

• charge £100–500 or more per year for business apps
• charge £1–10 per month or use advertising for consumer apps
• offer powerful features at a low price to meet user expectations

To make a profit, you need a large number of users. The number you need depends on your costs and how you plan to make money.

App monetisation strategies

How you make money from your app depends on your goals and your audience. Many apps use more than one approach.

Subscription models

Users pay a recurring fee, usually monthly or annually, for access to your app's content or services. This model provides a predictable revenue stream and is great for apps that offer ongoing value.

In-app purchases

You can sell a variety of virtual or physical items directly within your app. This could include extra lives in a game, premium features, or special content.

Advertising revenue

You can earn money by showing ads in your app. Make sure ads do not get in the way of a good experience for your customers.

Freemium vs premium pricing

The freemium model allows users to download a basic version of your app for free, with the option to upgrade to a paid (premium) version for more features. This lets people try before they buy.

One-time purchase apps

Users pay an upfront fee to download your app from the app store. This is a straightforward approach, but it can be a barrier for new users who are used to free downloads.

Realistic revenue expectations

Some apps grow quickly, but most take time and effort to become profitable. Your income depends on your pricing model, how many people use your app, and how engaged they are.

Focus on creating a valuable product that solves a real problem. When you build a loyal customer base and deliver a great experience, profit will follow.

Costs of developing an app

Michael Yared,

Echobind

Web apps are cheaper to produce. You can create a web app that does one thing really well for about $60K. Double that if you want it to do lots of things. And if you want it to live on mobile too, then you're looking at over $200K.

• build a simple web app for around £60,000
• add more features for £120,000 or more
• include a mobile app for a total of £200,000 or more
• build it yourself if you have coding skills
• use no-code platforms for simple apps
• start with basic features and add more later

The process of building an app

The app development process starts with a minimum viable product (MVP) to keep costs down and test demand. Focus on building the most important features first.

Key principle: Focus on one or two must-have features only. Competitors rarely succeed by simply adding more features to your core idea.

Making changes early in the five-phase development process helps you save money:

Phase 1 – discovery

Identify essential features and design user flows

• outcome: clear feature requirements and user journey maps
• why it matters: changes here cost ten times less than in later phases

Phase 2 - Wireframes

Create basic black-and-white page layouts

• Outcome: Visual structure without design elements
• Focus: Functionality placement, not aesthetics

Phase 3 - Prototypes

Build clickable navigation (non-functional)

• Outcome: Testable user experience flow
• Benefit: Validate concepts before expensive development

Phase 4 - Visual design

Add colours, images, and final styling

• Outcome: Complete visual specification
• Deliverable: Every button, menu, and page designed

Phase 5 - Development

Write the functional code

• Outcome: Working application
• Note: Most expensive phase for changes

Yared says you should make most of your changes during the discovery phase. 'It's the most important part of building custom software, otherwise you risk building a house with the wrong foundations. Changes get ten times harder and more costly to make with each step in the process.'

Marketing your app

App marketing is essential for generating revenue – even the best app needs users to find it. Your marketing strategy should start before launch and continue after release.

Pre-launch strategy:

• Beta testing: Recruit test users for feedback and early adoption
• Market validation: Confirm demand before full launch
• User acquisition: Convert testers into paying customers

Launch optimization:

• App store presence: Clear problem-solution messaging with relevant keywords
• Website landing pages: Dedicated pages explaining your app's value
• Search optimization: Help potential users discover your solution

After launch

Michael Yared,

Echobind

See how the app is bearing up to real-life use. Certain areas may be getting more traffic than you'd anticipated, which can slow down performance. Deal with those things. Take note of which features are popular and make those experiences as good as you can. If a feature's going unused, decide if you'll drop it or promote it more so users know it's there.

After launch, focus on keeping your customers and improving your app based on real feedback. Early customers give you valuable insights for long-term success.

Key post-launch activities:

• Performance monitoring: Track which features get heavy use and optimise accordingly
• User behaviour analysis: Identify popular features to enhance and unused features to remove or promote
• Technical optimization: Address slowdowns and capacity issues as traffic grows
• Feature refinement: Improve popular experiences to increase user satisfaction and retention

Managing your app business finances

When your app starts making money, keep track of your finances from the start. Monitor all your income, whether from subscriptions, advertising, or app store sales. Manage your expenses, such as development, marketing, and server costs. You may be able to get help with business software costs through government schemes like the UK's Help to Grow: Digital, which offers eligible small businesses discounts of up to £5,000.

Understanding your cash flow and profitability helps you make smarter decisions about where to invest your time and money. Using accounting software can simplify this process, giving you a clear view of your financial health. Data from the Enterprise Research Centre shows that businesses using accounting software see an average 12% increase in sales over three years. This helps you focus on growing your app. When you keep your finances organised, you’ll be ready for tax and have the information you need to grow your business.

FAQs on making money from apps

You may have questions about making money from apps. Here are answers to some of the most common ones.

How much money can you make from an app?

There’s no single answer. You could earn very little or millions of pounds. Your income depends on how you make money, how many people use your app, and how engaged they are. Building a loyal audience over time leads to success.

How can I create my own app to make money?

Start with a great idea that solves a problem. Then, research your market, create a business plan, build a minimum viable product (MVP) to test your idea, market it to your audience, and choose a way to make money.

How do free apps make money?

Free apps usually make money through in-app advertising, in-app purchases (such as unlocking features or buying virtual goods), or a freemium model where your customers can pay to upgrade to a more powerful version.