How do Free Apps Make Money?
A mobile app can bring your company millions of pounds every year, although there are a very few numbers of apps that prove to be that lucrative. Many mobile apps that have been developed end up making no money at all. Therefore, coming up with a solution that will prove to be a lucrative asset for your business is imperative. There are many ways that you can make money from your app. Some of the possible ways that you can make a profit may need a small contribution from the users. There is not just one way that you can earn money from your app, it all depends on the app’s service offering.
This way is probably the easiest and most common way of making money in your mobile application. Once your app is created and published onto the app store, you can decide if you want to allow advertising in your application. As you are the owner of the app you make money depending on the number of impressions the ads make or the number of clicks, they receive. If you were to allow a business to have a video ad on your website, you would tend to earn more money than a standard banner ad. A great way of earning money is to have no ads on your app… yes, you heard right! Offering an ad-free version of your app can mean that users have a less disruptive experience for a small fee.
This form of app revenue is more relevant to user experience. This kind of revenue model enables users to unlock some extra features or level up in a game for a fee. The purchases that app developers can offer are bonuses like virtual currency or non-consumables such as maps and virtual merchandise. If you’re thinking of adding in-app purchases you need to decide before creating the app, as the app developer will need to design the app to accommodate a payment method.
The subscription app model is an effective one as it gives a fair deal for both parties that are involved. This is a successful way of increasing downloads of the app and then increasing total revenue. The app owner would offer the app for free and then once the user is on the app and finds it useful, they can upgrade to the paid subscription which could give them a range of extended features.
You have put a lot of time and effort into your application, it’s only fair that you make money from the app. You could put your brand-new application on the app store for £0.99 and once you have 1 million downloads, you’ve nearly generated revenue of 1-million-pounds. However, some experts have doubts about the effectiveness of paid apps as not many mobile app users frequently spend money on apps.
Selling Company Merchandise
Another effective way of increasing your businesses revenue through a free app is selling merchandise. This, in particular, is a valuable technique for an e-commerce app, as fast fashion businesses like ASOS offer free apps to encourage customers to download the app and browse their range of clothing products. You can even link your app with email marketing techniques to get your merchandise into the view of your audience.
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