Most B2C business models need a mobile app. Business people associate Mobile app development with an investment that may or may not monetize. In 2018, the Apple store (ios app development ) grew by about 10%, the Google Play store (Android app development) about 20% based on data released by Data Annie.
What if you could monetize your mobile app and actually make profits out of it? As of 2019, a whopping 4.39 billion people use the internet across the world. A 9 percent increase than in 2018. It’s 2019, let’s learn how to leverage mobile app solutions to enhance business while making money on it.
Here are 7 ways to monetize your mobile app
1. Go premium
We are all aware of how most of the apps available leverage a premium feature. This works excellently for your business for two reasons.
First, you give your users a free app that gives them a good idea about your product and services. The fact that the app is free, provides enough incentive to your customers to install it. Plus, nothing is more accessible than an app to put all your products and services in one place.
Second, this is exactly when you can charge a certain about for premium services. Premium offers a better version, better facilities, and better services for your customers. Giving them the freedom to choose what services they would like to opt for builds a good rapport. This is the best way to show your customers the full potential of what you have to offer.
2. Subscription services
Subscription is a great way of offering services and charging a minimal fee for it periodically. According to Forbes, there are three types of subscription types. These are categorized as low-cost subscriptions, medium cost, and high-cost subscriptions. The analysis shows that the conversion rate for medium-cost subscription is almost 5 times that of low cost and high-cost subscriptions. Price vs. value-added services in the deciding factor on how many users will download the app.
3. In-App purchases
The deal with in-app purchases is that most of your services are free. This gives your users an incentive to download the app free of cost. Thus your initial user funnel becomes much wider. Based on a specific value for money service you can give the users in an in-app purchase option.
During mobile app development, ensure you make your app a great space for the user to explore while keeping products up for sale. If there is a value add in what you offer free of cost, the customers are more likely to pay for the in-app purchase.
4. Advertise
The simplest and the oldest trick in the book. When you develop a mobile app, you can earn through advertising. This one is a win-win situation for everyone. You can build up your trust with the customers by offering great services free of cost.
At the same time, you need not run an app on a negative investment. Advertising money is enough to cover the mobile app costs and you could even make profits on it. However, it is important to note that inundating your customers with ads is also not advisable. Having a good balance between advertising and the revenue you earn is important.
5. Affiliate programs
Major companies such as Google, Apple, and Amazon have affiliate programs. Affiliate programs are a great way of earning recurring income on apps. App developers can choose apps/ products you can promote and make money out of it. These tech giants may not pay as well as specific partnerships. You could also tie up with specific businesses to earn good recurring money on your app. Keep in mind, that a substantial reach is a prerequisite to be successful with affiliate programs.
6. Sponsorships
Every business needs funding. If you are a start-up it makes sense to look for external funding. All major companies and influencers are looking to bank on start-ups to diversify their investments. Collaborations are also a way of bringing in the money.
If you have trial versions of your app ready, you can pitch to call in other app developers. If you have a tie-up with reputable app developers it’s the quickest and simplest way of getting in funds. External mobile app developers can bring in Mobile app development tools & expertise on how to develop a mobile app that monetizes best.
7. Pay per download
Pay per download is great because your customers can avail of all your products/services through one time payments. However, the catch here is that customers may not be willing to invest in an app without trying it.
Most Android app development services offer trial versions of paid apps for 7 days to counter this problem. You can innovate your own model based on the type of service you offer.
The ideal way to go about this is to develop a mobile app free app and give your customers a good feel for it. If you manage to build an engaging experience, users are more than likely to pay for your services.
Think about it, how many apps do you not mind paying for? Which models do they use and what kind of services do they offer? What is it about the app which makes you want to pay for it? These are the key questions you should be asking yourself, not just as an entrepreneur, but as an entire team.
FAQs:
1. Which Is Better To Launch Your First Mobile App: Android Or iOS?
So, now, you are ready for creating a mobile app. That is excellent news for you, but your work is not done here. There is an important decision to make ….read more
2. How Long Does It Take To Build a Mobile Application?
In the world of technology, everything is easily approachable. All thanks to the applications. We use mobile applications on a daily basis…read more
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