Mobile applications are a big hit in the market and every business today is keen to make improvements to their business and take it to new heights by developing a mobile app and earning huge revenues from it.
Also, a mobile app comes around as an ideal platform if you believe that your idea is going to make it big in the app world, like Facebook, or Snapchat.
However, whatever be your reason to develop a mobile app, something where you are on the same page with other prospective developers is all want to make money via your app isn’t it?
But before you jump into app development with all your savings, here’s some advice. STOP. AND. RESEARCH. Yes, this is something that is pivotal before you get geared up to creating your first app.
The mobile app industry is a billion-dollar industry and there certainly is plenty of money to be made this encourages every business to create their own app. But, to be honest, it is very naïve to think that simply creating an app will automatically make money. Now, this can’t be true.
As the matter of fact, do you think that simply starting a business will automatically generate revenue, no right? You need to have the right knowledge and enough experience that helps steering you on the right path.
Joining hands with an app development company can be of great help here as you get a set of right individuals who have immense experience and knowledge of the app development process and how to make an app work.
In this blog, we will discuss several aspects of how to make an app that actually makes money.
Okay, so people spend most of their time on phones today, using apps. Be it groceries, news, social platforms, entertainment, or be it anything, they are using apps most part of their day and this clearly means that your consumers love using apps.
This is why there is a huge opportunity in developing an app. But how to develop a great app that actually gets downloads and keeps your users spellbound throughout and not just for a few days. After all, making an app is an expensive affair and you do want your app to generate profit in return.
Here’s what you need to know.
Find a platform that generates the most money:
There are mainly two kinds of platforms, i.e., Apple and Android, and often businesses choose to create the app for one platform, and some even use both platforms simultaneously.
If we have to pick the app developers that make the most money, then it is Apple. 25% of the Apple developers earn more than $5000/month, as compared to only 16% of Android developers making over $5000/month. So, Apple is the clear winner here.
Android dominates the global market share with Google Play Store, it enjoys a wider audience. So, the money you earn will first depend on the platform you choose.
Both iOS and Android have different user behaviors, so the app type you have must fit with the audience you are marketing towards and choose the platform they have the largest presence on.
As per the research, iOS users find mobile shopping more convenient than Android users. So, yes you need to figure out whether you want a smaller percentage of a larger population to buy something, or you prefer having a larger portion of a smaller population.
Also, it is crucial to figure out your target market and for that, you require conducting research to find out the audience who will be keen to use your app. Doing this will ensure that you launch your app on the right platform and resultantly you will be making a lot of money.
The next important factor is that your mobile app needs to actually perform well, irrespective of the platform you are developing for. Like, if your app is always crashing, users would get frustrated and abandon it.
Ensure that the app is not taking a long time for loading. Two seconds is the expected load time. So, ultimately it is all about the user experience and your efforts to constantly enhance it if you want to generate more and more money.
But first, figure out what kind of revenue do you see your app making? Apart from the platform, the kind of revenue an app makes depends largely on monetization strategy. So, let’s explore the revenue streams.
Right revenue stream to make money via apps:
So, how you do see your app-making app? Well, your strategy for making money can entirely change the point of your video app. And this is why having a business plan is crucial and that you need to figure out before the app goes into the development stage and is launched in the app store.
The top ways to monetize the app are in-app purchases, Subscriptions, & Advertisements, and you need to find out which works best for your app idea. You can even choose to use a combination of these methods. Also, these are the methods that make money even with a free app, where you do not charge for the downloads. So, here we explain the following:
This monetization model is quite straightforward, where the users are charged a rate for a specific period of time, like, monthly and annual subscriptions are common here.
Studies show that apps with a subscription model make 50 percent more money per user as compared to mobile apps with other kinds of in-app purchases.
This kind of app usually generates two-three times more revenue as compared to apps using advertisements or paid downloads to make profits. However, to make the subscription model work for your business, it is vital to create a kind of content that makes the users keep coming back to the app for more.
As otherwise, they won’t continue spending money on an app that doesn’t keep them engaged. One thing that works best in a subscription app is to target a big audience as by getting enough people to subscribe, there is no need to charge a huge fee monthly/annually.
Also, have a creative team on board that is making constantly efforts to keep the app relevant, so that people will keep on paying for your services.
If you have an existing business that is selling products/services then a mobile app can be helpful in making more money. Though it is viable to earn money by directly providing products/services to users, still it is vital to factor in your marketing, logistics, and pricing.
So, as you ship a physical product to the users making purchases from the app, it is necessary to ensure that even after labor, packaging, shipping, and other costs, the sale is still profitable.
Yet another strategy of making money through in-app purchases is providing something intangible to users that can be used within the mobile app.
Another popular means to earn money is through advertisements. However, to implement it effectively, it is vital researching your users. To make money via ads, it is important to align the advertisements with the products & services they actually need.
For instance, showing ads for kids’ toys on an office-going girl’s phone is a waste of space and won’t generate any money. At the same time, you also steer clear of bombarding the users’ devices with a lot many ads that end up hindering their experience with the app.
In order for an advertisement to be effective, it has to be displayed at the right time, or else it can be seen as spam. So, use this great monetization model a little care for it to be effective and earn you a lot of money.
By using these successful monetization models, you can earn a lot of money making via free apps. Simply build a great app, offer it on the right platform and monetize it with the right strategies mentioned above.
In fact, most apps available on the app stores are free apps and these app owners are simply using in-app purchases and other ways to monetize and still make a lot more money.
So, it is mainly all about being creative and coming up with new ideas. Like, earlier the apps were just considered for smartphones or tablets, but today with Smart TVs, apps have reached there as well.
There are many companies offering streaming services that allow the users to use their apps on Smart TVs as well like there are Netflix, YouTube, Hulu, Watch ESPN, Amazon Prime Video, HBO Now, etc.
Also, there are apps available for video game consoles, such as Xbox One, Wii U, and PlayStation4. These devices are having app stores built into their system.
The future has great possibilities for the apps, and in coming times we will see more and more variety of apps entering the market. Hence, there is ample money to be made with these apps.
It is just there are a lot of factors playing a role in how much money the apps can make it depends on the type of app, the platform you use, and the revenue strategy you choose for the app. And then there are plenty of resources, such as the app development companies, that can be utilized to make the most money with the apps.