There was a time when we have to do a lot of effort to make a mere sum of money. But now if you have a great idea that will applaud by an audience then you can develop an app of it and make money from it. It is not like that after making mobile app money will be showering on you, obviously, you have to make efforts here as well. In this article, we are going to discuss how you can make money after developing a mobile app. In today’s time, almost every business and organization is trying to make a presence on the mobiles of their target audience. At such times, you can’t just spend thousands of dollars and your precious time. Henceforth, you must ask yourself a few questions before developing an app. The questions are:
- How is your app unique from the app of your competitors? Is there any innovative idea or have you made a better version of any existing app?
- Who is your target audience?
- What features of your app will make the audience pay for them?
- Is there any scalability in the app? How it will grow in the future?
- How your competitors are making money?
- What is your budget for mobile application development? It may require ongoing maintenance as well. Are you ready to pay for it?
You must have answers to all the above-mentioned questions before knowing how to make money through a mobile application. In this article, we will be knowing the best money-making app strategies. After reading this article, you will have a sound knowledge of how to make a good profit on your mobile app.
The money-making strategy of your mobile application can begin at the development phase of your mobile app. During the development, you have to plan what would be the features for which the users would be ready to pay. Remember, just by adding a feature you can’t ask your users to pay for it. They will be definitely not paying for it. No user can pay for a feature without finding any benefit for it. The best way is to make different combinations of money-making strategies and then implement them during mobile app development. The money-making strategies that we will discuss in this article are:
- Paid Apps
- Freemium Model
- In-app Purchases
- Selling API & Codes
Let’s discuss each in detail.
Paid Apps
The first thought that came during the idea of mobile app development is to make money through it, and nothing is wrong with it. In this monetization model, the apps are themselves paid i.e. users have to pay to start using these apps. However, users can’t just pay for any app. The app should have a very attractive user interface, interactive user experience, out-of-the-box features & functionalities, and unicity. You can set a reasonable price for the app and upload it to the app store. The best thing about this money-making strategy is that you will make money whenever the user will download it. But also, you have to give a small fraction to the corresponding app store.
Since it is not easy to compel users to pay for an app, you can adopt some tactics to increase the sale of your app. For instance, you can set the very lowest price at $0.99. This is a very nominal sum for which users will be ready to pay instead of using the free alternatives. Remember, you will require a huge number of downloads to cover the development costs and make profits.
If you want to know which mobile applications come under the category of ‘$2.99’, then check this page on the Google Play store. You can understand what apps are paid for. Most of these apps are gaming apps, securities apps, editing apps, etc.
Freemium Model
Freemium, signifies that this model would be consisting of two different models, free & premium. In this model, the app would be free to download. The users would be initially able to use the app without paying any money. However, there will be some premium features in the app that will be accessible when the user will pay for them. Take the example of most music streaming apps or video streaming apps. In the music streaming apps, the users can listen to the app but they will not be able to make them offline or eliminate the advertisements until they pay for these premium features. In the video streaming apps, limited video content is made available to the users and to watch the full video content they have to either subscribe or pay for it.
Gaming apps are also the best example of this model. Angry Birds is a highly popular game. The users can play it up to a certain level but after that, they have to pay.
You can even opt for the MVP model and an advanced app. In the MVP model, there will be just basic features & functionalities in the MVP model, however, in the advanced version of the app, there will be premium features. Check out these pages: Google helps Android mobile app developers and Apple iOS app developers. Currently, the best examples of apps in this segment are Spotify, LinkedIn, Trello, etc.
In-app Purchases
This is another highly popular model for making money through mobile apps. It is obvious, that you will have a complete idea of the features and functionalities of the app, its purpose, content, and many other things. Hence, if you are developing an in which you are selling goods, then you must leverage the in-app purchases feature of the app. You can find two different types of goods to sell in the app: virtual goods, and physical goods. Let’s know the difference:
Virtual Goods
These types of goods are mostly sold in mobile games where to buy the virtual stuff in the games, users have to pay by real money. You must have observed the virtual coins, cars, etc. in the games. Let’s know each in detail:
- Upgrades: If you have to upgrade the character of the game you need to pay for that.
- Consumables: There are guns, clothes, elixir, etc. in the game which the users can also get by buying them.
- Currency: As mentioned above, there are virtual coins in the game, which you can get also through purchasing by real money.
Apart from mobile games, there are magazines, subscriptions, newspapers, which also use this method. Remember, if you overuse this method you may even lose the users. Make rational tactics in this method.
Physical Goods
As the name indicates, this involves the physical selling of goods which the users can physically experience. It is mostly carried out in the m-commerce apps where the app owner sells commodities like clothes, mobiles, shoes, books, etc. The user will browse a product, make a purchase, and it will get delivered to his/her doorstep. The app owner will make a profit by selling the commodities. The most common examples are Amazon, Flipkart, Myntra, etc.
Selling APIs and Codes
This model is quite unique and only a few app owners use this method for making money.
Selling APIs
If you are providing any astonishing service, that even other app owners will require in their own software or apps. Then you can sell the API of your app on a paid basis. For e.g. the Google Maps is a very primitive solution that every GPS app like Uber, Ola, Swiggy, Zomato uses for their core functionality. Google Maps charges them for using its functionality.
Selling App
If your app or your idea has become obsolete and you are on the verge of closing your app then it is better to sell the app and its code & IP on Apptopia. Thus, at last, you will have some money in your pocket from where you can start again.
Wrapping Up
In this article, we have discussed some monetization strategies by which you can make money through your app. Well, that’s not the end, it was just chapter 1 and we will come up with a chapter 2. At Appquipo, the best mobile app development company, we are having expertise in developing mobile apps, as per your requirements.
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