Guest Post: Glance Creative
Glance Creative specializes in digital solutions focused on the psychology of the user, creating emotionally engaging mobile products.
The right app could earn a lot of money for your business. However, to succeed, you first must understand how apps make money.
There are various ways to monetize an app. The best method for your needs will depend on the nature of your product and user base. Specifically, the following are the most common models for developing an iOS app or Android app that generates revenue.
Charging for Downloads
This may be the simplest approach to app monetization. Charging a fee to download it may yield a profit if the features are appealing enough to attract users. Just be sure to research pricing models first. For instance, the average cost to download a product from Apple’s App Store is less than one dollar. Pricing your app substantially higher than others could discourage users from purchasing it.
Charge for Premium Content
The “freemium” model is a smart way to attract initial users before charging any fees. It involves allowing users to download a basic version of the app for free. Users can access additional content or features for a higher cost. If they have a positive experience using the free version of the app, they may be willing to do so.
Advertise
Marketers want to reach as many potential customers as possible. If your app is popular enough, you could monetize it by running ads. You could also give users the option to remove ads for a fee.
Use the Subscription Model
You’re competing with literally millions of other products when you release your app. Simply convincing early users to download it is a challenge. Thus, you may not want to charge them for the initial download. You want to make your app as attractive as possible when they first find it.
However, the app doesn’t need to remain free forever. You can allow users to download it for a trial period. This gives them a chance to learn about its features. After the trial expires, ask them to subscribe in order to continue using it. If the product is truly valuable to them, they will.
It’s also important to set realistic goals when developing an app you plan to monetize. Although popular apps such as Pokemon Go! Continue to make approximately $890 million a year, you shouldn’t expect to achieve that degree of success.
However, consumer behavior indicates making money off a strong app isn’t as difficult as you might assume. You just need to release a quality product and choose the proper monetization strategy. Work with the right developers, and that becomes much easier.