There is no disgrace to accept that we all start a business to earn a living for us.
After that comes the concept of sharing knowledge, making your own brand and being independent. Another home truth is EVERY STARTUP NEED MONEY, and this is the major stumbling block. We are afraid of risking our hard earned money; with the fear of losing everything.
Believe it or not, this fear must be consuming in your brain as well. You had researched a lot on startup ideas, and you had made your mind to invest your money in developing an app. Now you’re wondering why you should have a free app instead of a paid on? Or how free apps make money?
Here are two quick questions for you:
How many of them are paid?
I have 28 mobile apps on my mobile phone and I have only one paid app: Netflix (Actually, I am addicted to few series of Netflix originals which are not available anywhere else).
Today; each app has its clones available which are similar in functions and are free. So the users will never spend their money to install a paid app. This is the reason that the top acquiring apps cost nothing to download like Spotify Music, HBO, Clash of clans, PokemonGo etc.
The Top Searched Questions Related To App Development Are:
Let's Understand The App Monetization Options:
Advertising
The most simple and best revenue yielding model is advertising. All you have to do is display the commercials inside the mobile app and a third party ad-network will pay for that. Today, “7 out of 10 apps are earning great revenue with advertising.“
How did the advertising model work?
The advertiser needs to first select the impression method on each ad and the price of each impression. The impression method can be pay per click or pay per install, it depends on the advertiser.
Then you have to clarify the type of advertising model according to which the commercial will be displayed in the app; it can be full screen, top stretched or bottom stretched ( I have covered this section later on, keep reading).
Whenever an impression is initiated by the user whether it is clicked or install you will get paid.
Let’s quickly have a glance at the types of advertising models:
Your app users may not pay money for your app initially. You need to win their trust and give them a reason to pay money for your additional features.
Once you have entered the app market you should initially provide the app for free as this would give a positive feel to the user and they would readily take interest in your app.
This would give you more vital information about user behaviors which could later help you in building an ideal revenue model for your app.
Want to build your own app? Get Started With The Experts.
Freemium Accounts
As the name suggests “Free+Premium”. Giving some basic features free with the App while charging for the advanced features or giving part of the app free and as the user get involved with the app selling the rest of the app for a fixed price.
The Freemium apps can be divided into two categories
Collecting and Selling Data
The behavior data of your user is invaluable for the researchers of your niche. We all know that apps collect a lot of data related to the app usage and user preferences; the data generally contains social media account details, email addresses and personal preferences of the users.
You can earn a good amount of money for the user’s data in two ways first; by selling this data to the researchers. The second way is; using the data for your own good. I have already explained the first part of so let’s have a quick look at the second way.
The companies related to your niche will display their ad in your app only when you can prove that you have the relevant audience. This data can help you to prove your point.
Referral Marketing
Wrapping it up!!
App monetization is a simple task but a tricky one; you need to understand your target audience before selecting the monetization model. All you need is dedicated market research and a deep understanding of users and target audience.
The major challenge here is to acquire loyal users and the right revenue model. Keep your users satisfied and you will get the best profit.
