Wednesday, May 6, 2009

Making Money Selling Free Apps?

How much money can you make from a free iPhone application? Quite a bit says Jason Kincaid, writing in TechCrunch.

A report from AdWhirl says that applications that crack the top 100 in the Free Apps list make $400-$5000 a day - a wide range, but even at the low end that works out to around $12,000 a month. And while applications that do reach the top positions in the App Store eventually lose steam, after the initial dip revenue tends to remain consistent over time. Of course, making it to the top of the Free Apps list is easier said than done, and most developers make far less than $400 a day. But the same is also true of the vast majority of paid applications - in fact, there’s actually less competition on the Free side of the store.

As for AdWhirl, the company allows developers to tap into multiple iPhone ad networks at once. It is obviously in AdWhirl’s interest to promote iPhone advertising, since that’s their business. But it’s clear that there are definitely quite a few free applications making good money.

Anyway, cheapskates such as myself no longer have to feel guilty about selecting free Apps. And when Blackberry and Nokia open their own App stores, it will certainly unleash the creativity of lots more application developers.

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