Sometimes, making money online isn’t just about building websites or blogs then selling products or ads.  Apple has built a technology powerhouse over the past several years by creating products that people love – and one of the most popular has been the iPhone.   If you have an iPhone, you know that you can download applications “apps” that allow you to do everything from organizing your contacts to making fart noises (don’t laugh just yet).  There have been hundreds of millions of apps downloaded since the iPhone’s inception and there appears to be no sign of slowing down.

Thinking outside of the box can really pay off, and creating iPhone apps is one of those out-of-the-box ways to make money.

iPhone apps have mass appeal & targeted users

One of the great things about the iPhone is that the cost of buying and maintaining the phone means that you have a more affluent clientele and people who are willing to spend a few bucks on an app for the phone – even if the app is solely for entertainment.

Making money with a free iPhone app

In a report released by AdWhirl (an iPhone app ad network) they analyzed the performance of free iPhone apps that make their money by displaying ads – and the results were quite astonishing:

• If your free application breaks into the Top 100 list of iPhone apps – you will make between $400 to $5,000 per day on ads.

Inspiring free iPhone app examples:

• 5800+ drink & cocktail recipes – $1,500+ per day
• iFart Alert! – $2,000+ per day
• Sound Grenade – $3,000 per day
• Fuzz Friend – $400 per day
• iSay Free – $400 per day

(Revenue numbers are from a May 2009 report by AdWhirl)

Making money with paid iPhone apps

On the opposite end of the spectrum of iPhone applications, we have the paid apps.  These range from a buck to several dollars and be a significant source of income.

Inspiring paid iPhone app examples:

• Ocarina - 400,000 downloads
• Pangea Software – $5,000,000+ this year
• Trism (game) – $250,000 in the first few months
• iFart – $250,000+ in first few months

Insights from a successful application

If you’re interested in more stats and trends, Pinch Media has put together a great slideshow that provides some excellent information for anyone interested in developing an app called – “AppStore Secrets.”  You can view it all for free in the slideshow below: