“Can I make money from an app?” is probably one of your first concerns if you have a great concept for a mobile app but are new to the industry.
We might have begun this article by discussing how common and stylish smartphone applications have grown. However, you are well aware of that. The applications cover everything—from scheduling reservations to seeking love to talking to pals.
Let’s study some data. According to research, the typical American adult looks at their phone once every twelve minutes. Seems astounding, yes!!
Everywhere we go, we use our phones! It’s possible that you are now viewing this content on a mobile device. Actually, applications account for 90% of the time spent on mobile devices.
So we have to think of “how to make money with mobile apps?”
Even the most basic apps may have a few useful monetization techniques in their sleeves, even if not all apps are designed to generate revenue. Apps may generate revenue in a variety of ways, such as by including a small banner ad in a free calculator or by providing premium membership tiers for a sophisticated health monitoring programme.
But the methods used to monetize applications differ just as much as the apps themselves. Let’s delve into the deep waters of strategies to make money from your mobile apps.
Strategies to Make Money From Mobile Apps
Here’re some of the top ways to make money from apps (app monetization).
1: Advertising Model
When it comes to free applications that generate revenue, advertising is arguably the most popular and simple to use. Additionally, a third-party ad network is used for it.
All you have to do is place advertisements within their mobile application or choose affiliate marketing, where you receive payment from independent ad networks. Furthermore, it is thought that the best approach to monetize applications is through advertising. Your only need is to display your ads within the mobile application to start earning money from third-party networks and advertisements.
App owners are often compensated when a user clicks on an advertisement, hits the ad, or installs the app after seeing an advertisement.
Users can take advantage of the premium features while their membership is current; however, they will have to renew their subscription in order to continue using them.
Most subscribers are devoted users of the app. For this reason, in order to entice consumers to keep their subscriptions, app developers should focus on producing fresh content and services.
3: Freemium Upsell
You may give your software for free using a freemium upsell model, but it will include premium or paid features.
The attraction of the freemium business model is in its ability to quickly expand your company through customer advocacy. Once consumers have personally experienced the benefits of your software, they will be eager to promote it.
Consider Spotify as an example. Although Spotify isn’t really a professional tool, you already know that everyone adores it if you’ve ever used it. Nearly all of Spotify’s services are free to access, however on desktop or mobile devices, you must endure the commercials.
You get access while users get to enjoy the advantages of your product without really having to give anything up or lose anything. From here, you have the option to persuade them to pay or to simply rely on the excellence of your offering.
In general, users who become devoted to and reliant on your product under a Freemium model will not object to paying for more access. What’s the finest aspect? Users will promote your software on their own, so you won’t have to invest any money.
4: In-App Purchases
How can free applications generate revenue? In-app purchases rank among the greatest methods of revenue generation. It is immediately created within the free mobile apps, and the procedure is typically rather straightforward. Usually, they are utilized to gain access to exclusive features or material like powerups, level restrictions, or other functionality.
In-app purchases are used to gain access to the robust and sophisticated features, which enable much faster and more capable user engagement.
To put it simply, the in-app purchases model gives you the option to sell a range of virtual goods straight from the app. With in-app purchases, the greatest free gaming apps—like Angry Birds and Clash of Clans—have improved user experience.
Because of digital money, game companies typically employ this paradigm. As a matter of fact, over half of the games provide several game currencies, including coins, gold, and gems. App downloads are largely influenced by these in-app purchases.
All things considered, this is a smart strategy for gradually converting free software users into paying ones without being overly invasive. However, in order to get consumers to continue paying, you need to keep them interested in your free mobile apps.
A true breadwinning monetization approach is to find a sponsor. This is how it functions:
After developing a popular mobile app, you approach a sponsoring firm to allow them to use and upgrade it in a way that aligns with their brand.
There are two kinds of sponsorship agreements: one in which you ask for a monthly sponsorship fee and the other in which you divide the profits with your sponsor.
However, locating a sponsor is a difficult task. You need to make sure that your mobile app is attractive enough to attract possible investors.
6: Crowdfunding Model
Crowdfunding is a novel approach to app monetization that allows for additional revenue streams from free apps. Using this approach, businesses and entrepreneurs post their ideas on websites like Chuffed, Fundable, Indiegogo, Patreon, Kickstarter, and Crowd Supply in an attempt to raise money for the application’s marketing and product development.
Non-gaming mobile apps are much preferred in crowdfunding, according to research from Mobile Growth Stack. Approximately 138 non-gaming applications were reported to have raised between $10,000 and $100,000 as of May 2017, whereas just 29 mobile games have achieved a comparable financing target.
How to Select a Successful Monetization Approach
There are undoubtedly many different ways to monetize apps, but which one is best for you?
Of course, the answer varies depending on your software and the benefits it offers to consumers. There is no right or incorrect response, but you may refine your monetization approach by taking into account the following.
1: Determine the Unique Value of Your App
When deciding how to monetise your app, the first consideration should be its goal and the benefits it offers to users.
An application as basic as a calculator, for instance, presumably wouldn’t want to charge consumers up front. If such is the case, it will probably be made profitable by sponsoring it from a calculator maker or instructional resource, or by placing very unobtrusive banner adverts on it.
On the other hand, if an advanced graphing calculator software offered enough premium features and mathematical operations to warrant the price, it could easily justify charging a one-time cost.
2: Evaluate Your Audience
If active users don’t agree with a monetization approach, it may be incorrect even though it first seems appropriate for a particular app. For instance, people with smaller smartphones may not want to see constant pop-up advertisements in their field of vision, while users of Android smartphones are unlikely to be willing to pay more for the integration of material from iPhone apps.
Your decision may also be significantly influenced by the user’s purchasing patterns. A paid option for more material wouldn’t be beneficial, for instance, in an app that assists users in finding discounts on groceries.
3: Incorporate Hybrid Approaches
Numerous well-known applications don’t rely just on one revenue stream. In fact, a lot of them are unable to since using just one strategy typically results in insufficient money to provide a healthy return.
The options for hybrid tactics are virtually limitless. For instance, a freemium app may provide in-app purchases and premium content together with adverts in the free edition. The same app may even license its users’ data to interested parties and notify them via text or email.
With so many different ways to monetize applications and generate revenue from them, it’s critical to remember that each approach has advantages and disadvantages of its own. Still, it’s a good idea to experiment with these strategies and study what rivals are doing. Now, you may have the answers to your queries regarding app profitability, how to generate revenue from a fresh app concept, and how to monetize free apps. You may have even discovered new avenues for making money with free apps. So, embark on your new journey and enjoy the fruits of your efforts!