You put your heart and soul into creating an app, to be part of the app store among the million others present. But, how do you make sure it reaches the target audience? What comes to the mind first is better user interface, simplicity et al but we all miss could be equally important – is your app cost-friendly?
Every business requires patience and above all strategies to drive your sales. At the end of the day that is the ultimate goal right? To get a good return on your investment.
2% of app developers claim about 54% of all app revenues. Now, if you aren’t part of this 2%, you need to seriously start considering where you’re going wrong and what needs to be the step ahead. If not, we can help you come up with one.
The first step in creating a profitable business out of your mobile app would be to determine which model suits you the best. Some app business models earn more money right off the bat at the expense of quickly acquiring tons of users, while others result in high downloads first and profits later. So what you pick depends on the requirements of your app.
- In-app Advertising (Free with ads)
Apps annoy all of us but these apps are different. This model allows the user to download the app freely but gathers information about the people using the app along with a good user base so that this data can be sold to app publishers who then place specific ads in your app. So you see where these ads differ - it helps the developers make money apart from annoying you ofcourse ;)
Facebook leverages a vast amount of their data to sell highly targeted ads. And this monetization strategy has proven quite effective for Facebook.
You start playing a game – your interest builds but at your highest peak you’re thrown in for a quick surprise. You’re asked to subscribe for all services rendered henceforth. This really pushes you off the edge, but that’s where this model really works. The premise of this model is that you attract people to your app and give them a rich preview of what your app can do (without giving them everything). The goal is to accumulate and engage app users until they are willing to pay for additional in-app tools.
Angry Birds could be the most apt example. Being one of the most addictive apps, some of its features are only available if you upgrade by paying a small fee.
- Paid Apps
Apps make life simpler – agreed! But how do you know whether it will or it won’t unless you see for yourself. That’s the major disadvantage of this model – that the user cannot use your services until he pays for it. Therefore, it comes down to whether you are able to showcase your app to be something new and unique, one which is different from similar free apps available. The vital role here is played by the mobile marketing team which should be able to convince users to purchase the app instead of going for the free ones. Camscanner is one of the many paid apps out there.
- In-App Purchases
Selling extra lives, money, tokens are all ways for apps to earn revenue. In a nutshell, this app monetization strategy involves selling physical or virtual goods within your app, and then retaining the profits. In-app purchases can include a wide variety of consumer goods such as clothes and accessories.
One of the best examples could be of MeetMe - People can download MeetMe for free and use it to browse profiles, chat with people, and connect with locals. However, you can also purchase credits to enhance your visibility and gain new ways to interact with people.
- Paywalls (Subscriptions)
Similar to freemium, except the content here is gated. Service app focused model, Paywalls allow an app user to view a predetermined amount of content for free and then prompts them to sign up for a paid subscription to get more. This model allows brands to earn revenue on a recurring basis.
Lumosity could be another popular app with certain content free but rest available at a nominal cost. It consists of games claiming to improve memory, attention, flexibility, speed of processing, and problem solving.
In this new-age, as we enter partnerships entail the most important part of a business model, and this is exactly what this model does. Sponsorship entails partnering with advertisers, who provide your users with rewards for completing certain in-app actions. In this model, brands and agencies pay to be part of an incentive system. Your app earns money by taking a share of the revenue from redeemed rewards.
One of the newest models to be in use, RunKeeper is already keeping up with the trend and uses incentivized advertising to motivate its users to track their running activity with their app to unlock exclusive rewards and promotions.
Its very important that your app reaches out to the targeted audience but whats equally important is that you earn revenue out of it. Money, afterall, can be a good incentive to work harder and for the better in the future. So, before you dive into this world think of how you can achieve the targets you set out with. What incentives, strategies and model would be right for you – because at the end it is your app which goes out onto the platform and its your decision whether it should be under the limelight or not.