How Mobile Apps can generate revenue?
Have you ever thought that with the ever-rising number of apps pouring in the App store or Play store, how do they survive? How they generate revenue to keep it rolling in the digital world? No??! You must.
This question must have come to your mind at least once so here are all the possible answers.
There are two types of applications in the pool; developed by freelancer/developers for their clients and developed by users themselves.
Developers/freelancers and development companies generate revenue by selling them, but there are plenty of users – who learn mobile application development themselves and make it for themselves and use it as a means of earning additional income.
With a number of available tools, you can convert your app into a serious source of additional income. Now, this must be sounding intriguing, isn’t it? That’s obvious!
Always be clear about the monetization model you will adapt to prove that your customers are ready to pay to get engaged with the app.
There are fundamentally three pricing models that bring in all the revenue. In-app revenue from free apps generates the most revenue at 71 percent with paid apps following at 24 percent and in-app incomes from paid apps at 5 percent so pursuing any of this will certainly attract good revenue.
Here each model is explained so you have a better idea:
- Freemium for apps and games
This isn’t just the most accepted monetization option for games and apps, but also the most revenue generating one, as I informed earlier.
A freemium app or game is available free-of-charge to the user with restricted features or content. Users can unlock additional content and feature through in-app purchase. Magazine or Articles app asking subscribing for monthly content updates is one of the examples. The free app or game with an in-app purchase removes a barrier for people to download an app once subscribed.
Provide a free basic version of your app to consumers so they can surf around to get an idea about what exactly is it and once they’re hooked, offer a quick buy-in with least resistance and for a fixed price or a monthly subscription
- One-time paid apps
Users need to pay just once to download the app with free updates.
If you want to launch a paid app, the idea of an app should be enthralling enough for users to pay to download even without testing. This model doesn’t have repeat revenue so looking for new customers each time, is the only option to get the ball rolling. Most utility apps fall into this category.
- Paid apps with added paid features.
This is a hybrid model that has gained popularity fairly recently, but critics are not favoring it as user need to pay again to avail more features. But developers are clever enough to provide a value for money every time in order to make users satisfied.
- Free apps with advertising.
Nowadays, many apps use this model as particularly in Android, users are not willing to pay; but at the same time, the developer needs revenue so advertising serves the purpose.
This model can make you money only when a large number of users download and use your app frequently. Amazon, Myntra or any such shopping sites can follow the same as the user is engaged with it for a prolonged time.