A century ago, some idiot said “everything that can be invented has been invented. That was before the Airplane and the atom bomb.

Well, now the slogan goes “there’s an app for that.” But apparently that’s not true either, because there are new smartphone apps being created every day. And if you’re a smart, unemployed or underemployed, tech-savvy individual, you can do it, too.

And yes, you can make money.

This is an overview of the thriving cottage industry of smartphone app development. I am not going to try to tackle the technical issues here: There are dozens of platforms, and technical requirements vary for each.

A Jobs Powerhouse

Pun intended. If you have a job, thank Steve Jobs. Because according to a recent report by the Application Developers Alliance and CTIA – The Wireless Association, the advent of the iPhone in 2007 led directly to the creation of over half a million jobs in applications development and related fields alone.

Among the report’s key findings:
• 45 percent of adult Americans own a smart phone.
• That’s an increase from 35 percent in 2010.
• The number of applications carried by Apple’s App Store has increased by 40 percent in the last year.
• Android apps and market penetration growth is roughly matching Apple’s.
• Developers live and work in all 50 states.
• While traditional technology centers like California and Washington are still driving the hiring, 2nd tier technology center states like Texas, Oregon, Colorado and Virginia are also developing a vibrant apps development industry within their own borders.

The study also found diversity among the employers seeking workers with app development skills. It’s not just very large employers, nor is it all micro-tech firms with just one to three programmers working for many different clients. The study’s authors found that employers all across the size spectrum were actively seeking to beef up their development staff.

It’s not surprising. In addition to the GDP generated directly by the app developers and all the workers who support them, mobile apps are also becoming key drivers of market share for companies in all manner of industries. Real estate on a smartphone reinforces critical top-of-mind awareness, and having a solid and user friendly mobile app has become an important selling differentiator as companies compete for business.

How money is made

There are two basic models for making money: Work for hire, or pay-by-download. Both are pretty much self-explanatory: Under the work-for-hire model, your work is the property of whoever hired you. You can be brought on as a statutory employee, or you can work as an independent contractor for someone who wants your app to leverage his or her business. In either case, you typically don’t have a residual right to royalties for your work. But you do get your money up front. So under the work-for-hire model, you give up a substantial upside. But at least you get your money up front. This is important if you have bills to pay and mouths to feed now. But you might have to do some digging to get those jobs.

Under the pay-per-download model, you design an app, hang a price tag on it, and then put it up for sale on sites like Apple’s App Store. If your app sells, you get money: Anywhere from 50 percent to 80 percent of the download price.

Now, Apple doesn’t approve every app. Indeed, they’ve had some weird rejections, including one recent case where they rejected a WWII game because it used the “Rising Sun” emblem of Imperial Japan. But if your app doesn’t make the Apple cut, there are workarounds. You just have to get a little creative with marketing.

Choosing your Application

If you are relying on getting paid per download, the iPhone and iPad are your best bets. There are certainly a lot of them, and Apple has had more success getting people to pay for a download.

If you’re looking for sheer numbers for mass market appeal, you will probably want to develop for the Android. And plenty of developers write apps for both. You will probably want to get an emulator – a computer program designed to mimic the behavior of a cell phone operating system. And you may want to get your own phone for each model you are developing for.

Selling Your App

There’s a middle ground between working for hire and relying on a per-download revenue split: You can also develop an app with a specific industry in mind – and then go sell it. If you hit on a winning application for a company, there’s nothing wrong with contacting the VP of marketing or acquisitions and selling your idea. You can negotiate to sell the entire kit and caboodle, or have the company, rather than the customer, pay you per download. If you do go for the per download idea, make sure you lock in the terms for a certain amount of time. Otherwise the company could simply go to someone cheaper tomorrow – while still building on your ideas, and leaving you with nothing to show for it.

Already a developer? Find your next job in Vitaver’s CAREER section!