Business models deployed by mobile developers have changed over the years. The chart below shows the results of our ongoing surveys of mobile developers and how they are compensated for the development of their mobile apps.

The chart reveals some interesting trends:

1. Building applications for others on a contractual or agency basis has traditionally been a very popular way for developers to make money.
2. Back in 2012 it seems there was more experimentation with business models and an uptick in fees that are based on usage and referrals is observed. These experiments seemed to be at the expense of business models with greater upfront payment models such as perpetual licensing and building apps on contract. In our November 2013 in-app purchasing and term licensing emerged as popular business models.
3. It is also interesting to note that the number of developers who are simply building apps to make their company more productive and competitive has steadily declined over the years. This fact coupled with the growth in the number of developers creating apps on contract would point to a trend of increased outsourcing for mobile app development. The primary driver of this trend would be the realization of organizations that they don’t have the skills or budget to create their own mobile apps. As the mobile app development tools market begins to mature it will be interesting to see if this trend reverses itself. Hopefully our upcoming survey will reveals some answers.