Those days are long gone when mobile apps were meant for users only. Times have now changed; mobile apps are now being used by various businesses quite extensively.
Making apps has become a mode of making profits, which is the reason why businesses all across the globe are planning on investing a fortune in mobile app development.
Earning profits seems an easy job to pull off, isn’t that right? Well, if think the same, sorry burst your bubble, but the process behind it is more complicated than it seems to be.
The success of an app depends upon various factors like the number of downloads, audience engagement, number of users and so many others. Apart from that, revenue is one of the major aspects that define success better than anything else. However, revenue generation from an app varies and is highly influenced by the target audience and the reason behind creating the app.
So, what has to be done, in order to make the best out of an app? Well, if you came here to look for the answer, we are glad to tell you that we have an ultimate solution for it.
In this article, we’ll be discussing some of the things that you should consider adopting in order to enjoy maximum profits from your app, irrespective of its genre.
But, before we get right into it, here are some facts that you need to know at first about your app.
1. What is the USP of your app?
2. What problem of the user does your app address?
3. Why is your app different?
4. What is your competitor’s revenue model and how did it work out for them?
Once you are done finding the answers to these questions, you can move further in looking for a perfect revenue model for your app.
In-App Marketing
In-app marketing is effective to get into the shoes of your users. This strategy lets businesses to use real-time and personalized messages to help engage, retain, and gain customers.
A Great In-App User Experience Includes:
• An on boarding experience that makes it easy to get started
• Re-on boarding for inactive users coming back after a break
• Helpful explanations or tutorials of new features
• Quick and contextual access to knowledge base content or customer support
• Suggestions for high-impact activity (i.e., showing users how to get even more value)
5 Types of In-App Marketing
• In-app notifications
• Tooltips
• Splash pages
• In-app messages
• Modals
Benefits
• It allows you to gain users quickly because people admire free apps
• Since apps can store data, target advertising is the best thing to do
Freemium
A freemium model gives your users the opportunity to discover your product without the necessity of interacting with marketing campaigns. After getting satisfied with your app, the user will eventually decide to invest in a premium account.
In order to gain premium users, you have to put limitations on certain aspects of the app. you can pull this off in the following ways.
1. Feature limitations
Offering extra features and enhanced functionality of available features
2. Usage Quotes
Storage limits, monthly credits, data processing quotes
3. Limited Support
Tiered access to customer service and support resources
Benefits
• This model makes things easier to build up a large user base
• It is quite a flexible model as it can be adapted to almost any available venture
Paid Apps
When it comes to the implementation, offering a download for payment is perhaps the simplest way to earn revenue. In this model, your business earns profits each time a user purchases your app.
After a one-time payment, the user gets access to the app forever, along with exclusive features and functions that no other app is offering. Besides the fact that it is simple to pull off, it’s difficult for businesses to get potential users. Having millions of apps available, the App Store is quite a competitive place, where strong brand awareness is necessary. As per a handful of surveys, we came to realize that paid apps are 90% less likely to be downloaded than free apps.
Benefits
• App developers and businesses earn revenue with every new download
• Those who have paid for the app are more likely to turn into engaged users
Subscription Apps
If we talk about popularity, then there is no doubt about the fact subscription-based apps came in like a storm and now have taken over the world.
Subscription-based apps are known for providing the business with a reliable source of income, especially when compared to other app revenue models in this list.
Who doesn’t love saving money? Everybody does, which is the reason why such apps provide its users with subscription plans ranging from 6 to 12 months.
Benefits
• Subscribers are loyal and engaged app users
• More and more subscriptions motivate developers to work on providing the best content to their users.
Sponsorship Apps
This revenue model is being used quite aggressively by most of the businesses out there. It let businesses to partner up with advertisers, who provide the user with rewards for completing certain app-actions. Sponsored apps let brands and agencies pay to be a part of an incentive system.
Also Read: Top 10 Mobile App Development Trends In 2020
Your app, on the other hand, earns money by taking a share of the revenue from redeemed rewards. Not only you are earning money, but this revenue model lets you enhance your app’s ability to engage more and more users. Here are some of the benefits you can get by choosing sponsored apps as your primary app revenue model:
• This model can be adapted to many verticals
• This strategy is more likely to be better received by app users because it is relevant and related to an app’s purposes.
• Marketers earn revenue, advertisers get more ad space, and users benefit from free promos
If you are planning on making the best out of an app for your business; then choosing one of the aforementioned revenue models might be the right thing to do.
