Everyone is looking for ways to make money, online and offline. To fulfill their dream some entrepreneurs have started to explore online business opportunities and it turned out to be a profitable project. Some invest in mobile services, others build web tools to achieve their purpose. This article will focus on how you can make money if you build an app. Before sharing with you the most common ways to earn money from an app, it is important to state that there is no ideal method everyone can use. It all depends on the features your app has and on the business model, you prefer.
Buying something on a mobile site vs. in-app
If you are running an existing company then you probably have a website to promote your business and even to sell products and services. Hopefully, your web page is optimized for mobile devices because if it is not, the users probably leave the website and check the one of your competitors. The average internet user spends around 5 hours a day on their phone or tablet, they are scrolling through their social media newsfeed, streaming music or doing online shopping, therefore your goal should be to enhance their experience and to make them spend as much time as possible on your website or app if you have one.
Talking about mobile friendly sites and apps, have you ever asked yourself “Do users prefer buying directly through an app or on a website?” The answer is simple everyone likes to use apps. Why?
- They find it more convenient
- The app stores their settings
- They place the order faster
- They get personalized content
- They find better deals
- They find it more entertaining
But how can you get some revenue from your mobile app?
Include in-app advertising
In-app advertising is a common strategy, app developers use to monetize their systems. It is an easy process, you allow advertisers to share content on your app, and you get paid according to the number of clicks the app gets. If you want to get a higher revenue, you should allow advertisers to put up a video rather than a banner.
Before allowing all advertisers to put up ads on your app, you should consider how your users’ experience would be affected and if you address an audience that is patient enough to watch a video. You will have to carefully choose the advertisers you allow to post on your app, the duration of the video, and the frequency with which it will run.
Tip: Some apps earn money by not showing ads. How do they do it? They have a premium version of the app, for which the users have to pay if they want an ad-free experience.
If you include this feature in your mobile app, you can enhance the users’ experience because they can unlock some extra levels or features if they buy the premium version. Following this model, you can decide the type of premium you want to offer, a virtual currency for the game apps, extra features for a fitness app, and so on. Depending on the specific of your business, you can choose from consumable purchases like virtual money or non-consumable purchases like new features, levels or maps.
The most successful mobile apps of the market use in-app purchases to grow the revenue of the owner, and the statistics show that their number is in continuous growth. The most popular model of mobile apps is the one based on the freemium model, you are offering your app free but if the users want to unlock some extra features they have to make an upgrade.
When listing your app on the store, you will have to decide if you offer it free or you charge the users for downloading it. If you want to generate a higher revenue you should charge a fee for every download, it is a simple way to make profit. However, you also have to consider the possibility that users may have second thoughts if they are asked to pay. You should open the App Store and check how many of the apps available there are asking a fee and how many are free. You will notice that around 90% of apps are free. It is not the ideal strategy to offer a free app but you have to consider both options.
If you discuss with the app developers from a custom software development company they will tell you that paid apps have greater chances to grow a loyal audience. If they are willing to pay for installing the app, they will definitely make some extra purchases later.
Keep in mind that your app definitely has competition on the App Store, so people may prefer to search for something similar rather than paying for your app.
Establish a subscription plan
The subscription model is highly successful because it offers advantages both to you and your users. If you use this model, you offer your mobile app free but the users are not allowed to access some features or content if they do not have a paid subscription.
When people begin using your app on a daily basis and they find it useful, they will definitely want to pay a subscription to upgrade to a premium version.
Tip: Another strategy is to offer the app free for a trial period and if the users want to have unlimited access to its features they have to choose a subscription.
Before starting to develop your app, you should know that not all the apps available in the App Store generate revenue. If you do not have a clear strategy from the beginning, and you plan to sit back and wait for money to come, you may experience a shock. Mobile users prefer apps but it does not mean that they are not also using websites. If you run a business that is selling products, make sure you have both of them.