Making money by creating apps: how to monetise your solution
In this article, we will consider general pictures of obtaining income through apps and types of monetisation strategies. To get profit from mobile app, you foremost need to nail down monetisation models. We use mobile applications in everyday life and for work. Users are increasingly seeking to make their lives mobile and speed up the execution of various tasks or spend time on their favourite mobile game. In this article, we will not deal with the mobile gaming industry, but talk about how to get income from mobile applications in other categories.
The answer is clearly positive, although the total volume of free apps for the App and Play Store is 96.3%, and 3.6% are paid apps. Modern mobile applications offer extended subscription functionality. This is one of the common solutions for monetization of the application. Each of the niches (custom iOS/Android development) implies a variety of ways via which your business can earn money. The approach varies on your industry and platform’s specifics.
Statistics claim that 8 out of 10 software development agencies actively utilise advertising as a primary model for revenue. And so, the mechanism is elementary: the owner of the application showcases commercials within the solution and gets money for that from the partner. The income fully depends on the number of clicks on showed banners and installations. A lot of advertising annoys users. The attendance of applications saturated with advertising is low, so it is important not to overload your product with banners and obsessive recommendations. As a way out, app owners ask users to pay for no ads. Another way to stimulate video viewing by encouraging the user. The latter method is often used in game applications, but implementing it in another niche is not cost-effective.
Another model of monetisation: companies offer access to certain content or digital platforms for a constrained amount of time and charge corresponding fees. One of the widespread ways to establish that kind of collaboration is to start by providing a free trial before charging a fee afterwards (for instance, in cloud solutions, online news platforms, and video/audio streaming systems.
Businesses can also sell merchandise in free applications by implementing email marketing standards. Usually, it is a common practice for e-commerce companies that sell various goods, from toys and clothes to expensive jewellery. Amazon recently launched the Merch service, which allows app publishers to promote their services and goods within a single platform to encourage that type of getting money from apps.
As the name implies, app purchases presuppose the direct selling of virtual items easily. Over recent years, numerous UK agencies have tended to invest a major portion of advertising in in-app ads, as it allows to get enhanced user engagement.
According to this model, companies provide users with some free and some paid features (for instance, free downloading and a basic set of functions + paid advanced features of premium features. The latter can be purchased via infused in-app purchases.
For each digital transaction, businesses charge fees: at the beginning, publishers may claim lower fees and increase them gradually to get revenue without investing giant amounts of money.
Cost Per Acquisition or Per Action. The model includes a post-installation action (it can be either purchasing a product or signing up for a free trial.
Cost Per Click. From the name itself, you can understand that the funds are charged for the number of times visitors click the ad within an application.
Cost Per View (CPV). As long as users view your content, they pay for that: as a rule, these are lower payments.
Cost Per Install (CPI). Each time users click on ads, which precede another app installation, your company will be paid for that.
According to the statistics, around 75% of applications comprise advertising grounded on per-click, per-install or per-display models. For instance, the Flappy Bird app, combining all aforementioned strategies, earned, on average, $50k per day. The app was topping the App Store charts, serving as a bright example of how to earn money with an app. However, whatever monetization strategies you use, your app should be of high quality or offer a unique solution. The first thing that worries users is the experience and convenience of interaction with the application. Quality realization of digital product is the first key to getting income from mobile application.
Here is a list of core questions you need to consider before making up your mind.
If you need more tips on how to make money from the app, please get in touch with our experts by filling out the form below.
