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Surprise: Free iPhone apps make money, too

By Andrew Heining | 05.06.09

From the “whaaat?” department.

Much has been said about the ability of the Apple App Store to make software developers money. Writing programs for the iPhone is either a terrible idea (you’re one of a million!) or a great get-rich-quick scheme (millions of potential customers!), depending on who you listen to. But most of the focus has been on paid apps – which generally sell for $1 to $5 apiece.

And if developing for the iPhone is a questionable enterprise, developing free apps has been viewed as downright unsound. “Give away stuff for free? What am I, an online newspaper?” But new data from mobile ad server Adwhirl suggests that applications that crack the App Store top-100 can make anywhere from $400 to $5,000 a day. Did you hear that sound? That was software developers everywhere spitting Mountain Dew all over their keyboards.

Don’t go quitting your day job to develop free iPhone apps just yet (heck, it’s so bad out there Microsoft is laying people off). As Dan Frommer at Silicon Alley Insider points out, “The vast majority of apps are not anywhere near the top 100, and will have the same problem making money from ads as they do charging for their apps.”

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Comments

1. lauren | 05.06.09

I think it is CRAZY the amount of money a free Top 100 app can make in a day. I wish I could come up with something like that. In this video, a new question is brought to the table. Is Apple to strict with their approval policy? Will some of the apps such as iFart, and other silly useless apps still be around? http://www.newsy.com/videos/a_slice_of_the_apple_pie/ Are we reaching a point where Apps will be more serious and less jokester and pointless?

2. Belle Hatton | 05.06.09

these apps are a fad. they make money for a month and then they get replaced by a better app. check out this “hottest girls” app from allenthegeek.com It went on sale yesterday, and is already more popular than half the apps in the app store. once the people get the app they want, they will stop using it eventually and the developer will have to find another way to make money.

3. lauren | 05.07.09

I think it is CRAZY the amount of money a free Top 100 app can make in a day. I wish I could come up with something like that. In this video, a new question is brought to the table. Is Apple to strict with their approval policy? Will some of the apps such as iFart, and other silly useless apps still be around? http://www.newsy.com/videos/a_slice_of_the_apple_pie/ Are we reaching a point where Apps will be more serious and less jokester and pointless?
Sorry, forgot to add great post! Can’t wait to see your next post!

4. Syed Akram | 05.07.09

It’s growing so fast that you simply cannot ignore this market!It’s already turning people into millionaire and yet getting stsated! People just like you will make fortune from this! NOW is the perfect time for YOU to create app ideas.

5. Alice | 05.07.09

The complexity of learn Objective-C as your *ONLY* language choice… just isn’t worth it.

6. CashGiftsDirect | 05.08.09

There must be a science to making money with the iPhone off of free apps. You’ve got to be real good to do it. $400 to $5,000 a day… that’s some good stuff. If You ever figure out how to do it, tell me.

Overall, thanks for the information.

7. Perika | 05.09.09

With our technology of today, everything’s possible. So im not really shocked bout reading this. It’s growing really fast. App ideas are really great. Maybe now is the right time to check these apps now. It can make change instantly. Now i cant wait too see your next post. Cheers!

8. Tran Harry | 05.10.09

Having to learn programming from stage one makes it difficult for someone like me to even wanna do an app. The upside can be huge but if you get zero then that’s a lot of lost hours of time.

9. MAKE MONEY | 05.22.09

App ideas are great. We should give those a try. :)

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