One of the hardest tasks you face as a mobile app development company is figuring out how to make money with your mobile app. There’s no question that the market for mobile apps is still going strong; with smartphone sales reaching historic highs across the country, mobile apps are becoming the preferred way for customers to accomplish tasks and interact with the Internet. Mobile apps present a variety of ways to generate revenue, however, which can make it difficult to determine which business model is right for your mobile app. We’ve identified the most popular app monetization methods in use today; use this list to help you decide which business model fits your app the best.
Mobile App Sales
This is the most straight-forward app business model: simply develop and sell your full version application. Offering your app for sale is the easiest way to generate revenue from your app, although it doesn’t build the ongoing revenue that subscription and service apps provide.
While this is the ideal business model for games and leisure activity apps, the Freemium business model can be used to great success with a wide variety of apps because it actually encompasses several different ways to monetize your app. By delivering your app to customers free of charge, you can achieve an extensive distribution for your app; the trick is turning that wide reach into actual revenue. You can generate revenue with the Freemium apps in several ways:
- Enhanced or “Pro” version –This is the most widely used version of the Freemium business model, valued because it gets your app to the largest circle of customers. You provide a stripped down version of your app free of charge to customers; once customers begin to use your app, they are offered the opportunity to upgrade to access better features and premium content.
- In-App Advertising – Generally only for apps that already have a wide distribution. Selling in-app advertising can be a good way for larger, more successful aps to generate revenue, but this business model really only works when you can offer advertisers access to hundreds of thousands of customers at a minimum.
- In-App Purchases – Once customers are using your app, you provide them with chances to expand its functionality by purchasing content packages within the app. These can consist of additional levels or content, virtual goods (such as weapons, clothing, etc. in games), extra functionality, or the removal of advertisements and restrictions.
Service apps generate revenue by connecting customers to an essential functionality for a fee. Lyft is the perfect example of a successful service app. Using this business model for your app can be quite lucrative, but it is dependent on your being able to consistently provide a valued service in an underserved area. Begin by testing versions of your app in a limited area, but be aware that you will need to establish a wide distribution to generate long lasting revenue.
Subscription apps are rapidly becoming the preferred way of delivering content, tools, and even program functionality to customers. Consider following the subscription app business model if you are providing any of the following:
- Content Apps: Many magazines and newspapers are finding renewed success by switching their content delivery system from print to a subscription app business model. Customers appreciate the on-screen convenience of getting their news on their smartphone or tablet, especially since they can watch videos and follow live links to ongoing news.
- Tool Apps: Some subscription aps provide online tools that customers can use in their daily lives in addition to content. Barron’s App is the perfect example; it provides market analysis and commentary, along with customizable data tools and watch lists.
- Program Apps: If you have developed an app that provides writing, imaging, or other software functionality, consider offering it under a subscription business model rather than selling it outright. Many of the world’s largest software companies are adopting this business model, including Microsoft and Adobe.
App Development Service for Hire
Developing mobile apps for other companies may not fulfill your dream of taking the world by storm with the latest viral app, but it can certainly pay the bills while you work on your master idea. Businesses in virtually every industry are realizing the need for mobile apps that extend their web presence and offer essential functionality to their customers. Developing apps for other companies can also help hone your skills while you are developing your big idea.
Once you have completed the difficult task of choosing the right business model for your app, Blue Interactive Agency can help you introduce it with a bang! We provide comprehensive mobile app marketing services, including social marketing strategies, expert SEO services, PR press releases, and more.
Contact us at Blue Interactive Agency today at 954-779-2801 for expert interactive marketing strategies that will help your mobile app development company become a viral success!