Youtube, Instagram, Snapchat, Facebook, Whattspap, are some of the successful mobile apps that have successfully generated millions in revenue for their owners. If you have a mobile app or a mobile app idea, you can do it too.
Making an app is nowadays an intrinsic and important part of business evolution. It is the best and the easiest way to connect to users directly and to develop brand equity, simultaneously. They are also the most effective and easily available marketing strategies. Be it an evolved business, or a novice one, or rather a non-profit organization; everyone seems to build an app these days. As a result, there exist millions of apps on the various app stores.
Some of the biggest conglomerates these days are basically mobile apps. Think of Facebook, Whatsapp, Twitter, etc. Thus, everybody is making an app and looking for an apt app developer for this purpose. But, the major issue for app owners is how to create a profitable app as most of the apps end up making no or very little money.
The best way to create an app and make money is by ensuring that the idea on which the app is to be based is original and a very good one at that. If the app is well-made; and the idea and its utility strikes a chord with millions of users worldwide; your app is soon gonna monetize itself for all its development and maintenance costs and then some. But, it takes some minimum amount of time, effort and investments to realize that kind of development level. In the meanwhile, there are simpler ways and small coded inclusions that can monetize your app right away. In this blog, we will now be focussing on them:
This is an easy earning option for all app owners. They could help marketers by letting them place certain advertisements on their apps and then earn from all the clicks their users make on the advertisements. With varied data and app tracking tools available and innately employed on most of the apps, it has now become the choicest marketing option for digital marketers worldwide.
But, you cannot just adhoc pick up products and insert their advertisements on your app. Remember that, tacky, intrusive and glaring advertisements will not only not attract clicks but also, make you lose your users. Thus, take a closer look at products and services as well as the content of the advertisements beforehand to ensure you make no such mistake. Before posting ads, take a look at types of advertisements possible:
a. Banner Ads: These are the simple ads that occur on top or below the screen like a separate ribbon. These are the most common and clear types of ads that have been able to more or less, always promote sales.
b.Video Ads: The name clarifies the proposition of these advertisements. These ads inculcate videos that play when a particular app page is opened. Though videos are fairly effective in their engagement levels, they tend to make mobile apps heavy. In case, you opt for video ads, lookout for some lighter versions.
c.Interstitial Ads: These are the image advertisements that take up the full page of the mobile app at an instant. Though, high on engagement levels, it is necessary to carefully plan out the time when these ads will play on your app, in order to ensure that the user does not become uninterested towards your app.
d.Rich Media Ads: Rich media ads basically use content that is rich in images and effects they include. They are either ads with animation or including some other types of motion. These ads typically include stimulated videos, Flash animated ads, and ads that mix text and animated content and designs. When you create an app, try avoiding rich media apps completely or take up a very few of them as they again take up a lot of data and make apps heavy.
e. Native ads: These are the most common and effective types of ads these days. When you open play store or apple store these are the kinds of ads that are placed there as well. Native ads are basically, well researched ads that fit well in the basic context of the mobile app idea itself. Native Ads are even placed in the news feeds of social media apps. When you create an app, try to inculcate native ads for maximum effectiveness. They are thus, the most preferred form of in-app advertisements.
Since apps are able to collect first-party data, they are able to collect and provide valuable user- targeting information like gender, age, etc. This makes it easy for advertisers to precisely reach their ideal audience through in-app advertising.
If you are thinking, ‘how to make an app and make money’ ; the best way out is to create a premium service or an upgraded app version of your app idea. In this revenue model, the developers launch a free version which can be easily downloaded from the play store or the apple store and it includes some additional services that can be paid and then utilized only. In terms of free Vs paid apps; these freemium apps work the best.
This mode of revenue generation allows the developers to let users try their apps for free and then upscale marketing and sales of a premium version that might provide an ad-free experience, some power as in a game, some additional utilities, etc. It also helps them effectively cover the cost to develop an app as well as its maintenance cost of mobile app.
For Example, the premium versions of Youtube provides an ad-free experience and a premium version of a kids spy app lets its users even lock kids devices. The possibilities and utilities that can be developed here are endless.
If your app is providing a certain set of services or products to a user in a timely manner; you might opt to monetize your app through a subscription model. In this model, the developer needs to develop an app and offer it to the users for free, but only for a particular time period, say 1 month. Once the user likes the services of the app, they will have to go in for the monthly, quarterly, yearly and so on versions.
In fact, the Apple store is known to provide a better revenue sharing model (70:30) for apps that offer subscriptions to its users as they tend to engage the viewers on the platform for a longer period of time. Though, such subscription services require the app developers to pour in fresh content and utilities all the time, they make for continuous solid income flows. So, if you think to build an app, think of ways to create applications on a subscription charge model. Even the now famous entertainment apps like amazon prime, hotstar, Sony live, etc. all offer subscriptions on their services and content.
This is a step ahead than mere in-app ads. It leads to better and more strategic app partnerships. When you intend to create app and earn money hand in hand, you can opt to look for sponsors who may pay for the launch in return for some of the app users exclusive time and focus. If you are thinking of ways of how to make a profitable app, you could be looking out for sponsors from the start with a similar target audience and then develop a white label kind of a partnership (your product, their tag) on a revenue-sharing basis. For instance, a travel app may be sponsored by a spa company. On similar lines, Marriott club and Subway are also sponsoring apps with contexts related to their own businesses.
Crowdfunding of Mobile Apps is nowadays a common goal of app development companies that intend to create mobile app with its development and deployment cost covered beforehand. Crowdfunding platforms like Kickstarter, Indiegogo, Patreon, Crowdfunder (Shopify App), GoFundMe, Fundable, Crowdcube and Crowdfunder, amongst others help businesses look for funding options from individuals all across the globe to fund their app idea. These individuals pool in small amounts of money to cover the cost to develop an app (goal value) through these third party platforms .
This market vertical has been multiplying in value in the current times and is also touted to grow further in the near future. For instance: Chip, the chatbot app that automatically helps users save for a rainy day, has raised nearly £1.1 million on equity crowdfunding platform Crowdcube.
The above stated ways can help any and all app owners and app development companies to develop an app and choose inclusions in terms of monetization strategies to cover their development and maintenance costs, effectively. But, the manner in which you utilize these strategies is also very important. As per our recommendations, these revenue models should be well thought out and then placed or coded in accordance with the context of your mobile app.
For instance, if you intend to create a mobile app with a social cause; crowdfunding might be your best option and if you’re an established brand that already has retail channels and existing customers, you could easily make money with in-app purchases. If selected wisely, these options can easily help you cover your cost to develop an app and maintain it, even without investor fundings.
Do’s and don’ts to follow when you hire mobile app developers.