Mobile applications are developed to make it easier and convenient for customers to have access to services or to buy products but that is not the only purpose. Surely, the number of smart phone users is so huge that there is no point of having a website.
It has become extremely important for businesses to have their mobile applications as there is a strong shift from desktops to smart phones over the last few years. No matter what type of industrial sector your business belongs to, you have multiple purposes behind developing a mobile application.
The monetary aspect of it is always there and it is always significant to figure out how your mobile application is going to earn money.
Before proceeding further with the process of developing mobile applications, the technique you will use for monetization should be chosen. It not only enables you to examine your app’s performance according to the benchmark you have created, in fact it also shows that end users are interested in paying to book your services or buy your products that will solve their problems.
So, there has to be some or the other way to monetize your application as you cannot continue your business without generating revenue. Here are few ways to make money out of your mobile application.
Freemium
This is the most popular way to monetize your application, especially gaming applications. It generates the maximum amount of revenue. Generally, a freemium application is available for free to end users, but they can use limited features only, products, or information. Through in-app purchases, end users can have access to the premium version of a freemium application in which they can use additional features.
End users are also supposed to buy the premium version in order to get updates on a monthly basis. The freemium app eradicates the price point as an obstacle for end users to install an application and render developers a chance to show how significant their product is. One more way to monetize it is to supply a free version of your application in order to get quick sales and enable end users to purchase additional features for a certain amount or a subscription fee on a monthly basis once they think it is worth it.
Advertisements
This is a different way to monetize your app as it does not require end users to pay in order to use a mobile application. It provides end users with a free application but features advertisements. A lot of mobile applications utilize this concept of monetization. Such mobile applications run advertisements while the app is being used.
When a huge number of end users install and utilize your mobile application frequently, there is a high chance you can make money. If a mobile application is meant to solve a problem that users face on a daily basis then feel free to choose this concept of monetization.
Paid applications with additional features
This is a unique concept of monetizing your mobile application as it allows you to utilize the process of making money by launching paid applications and the process of making money by providing additional paid features at the same time.
However, a lot of people have criticized this way of monetizing a mobile application. Most users have the habit of downloading free applications and they think it is really unfair to pay in order to have access to each and every bit of a mobile application.
Therefore, it requires immense efforts to monetize your app using this particular method. However, if you propose the value of your mobile application in a cunning manner, then it does work.
One time charge paid applications
End users pay to install mobile applications, but all the additional features and updates are estimated to be freely available. If you want to develop a paid application and launch it then it should be impressive enough for end users to feel like they should pay to install it. There is no option of generating revenue repeatedly from currently existing end users.
Utility applications, generally, belong to the category of one time paid applications. Therefore, it becomes highly important to seek for new customers to generate more revenue. The majority of paid applications deliver the main value in the first installment, which in turn, is followed by small changes or modifications.
Sponsorship
Getting sponsors is also a feasible way to monetize your mobile application. The monetary aspect is sorted and it allows you to enhance brand integrity. In order to get potential sponsors, it is important to propose your idea in such a way that they get convinced by the time you finish narrating your proposal.
The most compelling factor is the aspect of marketing and their websites will have good online presence and aggressive traffic. They will surely not mind promoting your application on their web sites, which is going to enhance their brand value.
Conclusion:
Without figuring out what method you will use to monetize your app, there is no point of launching your mobile application as it is impossible to grow your business without earning money out of your mobile application continuously.
There are various methods that mobile app developers can use to make money, such as freemium apps, one time paid applications, paid apps with paid features, sponsors, and advertisements. Of all the given methods, what method you will choose is dependent upon the type of services or the type of products you offer and the industrial sector type you belong to as both of these factors determine your target audience.
Author Bio:
Karan Dave is a magical word-weaver and a creative content expert with one of the top android app development companies, Peerbits. He likes to keep himself updated with the latest technology news and gadgets. This technocrat has blended his passion for writing, and interests over technology, into making a resourceful contribution towards various websites by writing informative blogs. In leisure time, he likes visiting The Himalayas and go tech-free for few days.