We’ve all heard success stories. We’ve also learned that all good things start from a scratch. Companies which make millions now were at a point when they were offering their services for free.
Speaking about free, do you know the most paid apps and software in Play Store or App Store or any store for that matter are the ones which don't cost the user a dime? Don’t think so. I know it sounds unreasonable, perhaps more contrary but have you ever wondered how they retrieve the money they invested while making an app? Maybe then you’d want to rethink.
Now, what’s the catch here? How do they make something for themselves by offering a free product? You’re here to find out.If you looked closer at how mobile app revenues are channeled on a global basis, you’d find that the strategy for in-app purchases has rocketed sky high. And this is how your favorite apps, be it Spotify or Clash of Clans make the most of it with.
Got an idea that you wanted to make an app with and you don’t know how to make it get you something in return? You’ll get a hang of it by the time you’re done reading this.
Let’s start things by discussing the globally accepted version of a freemium. It’s the kind of app which offers you the basic functionality of a service. The aim of this type of business is to lure in users in a way it’s irresistible to not use it later. Most of these apps would be trial versions of their Premium app and if you’re trying to hit gold with a larger number of audience, this is the most powerful strategy when making an app available.
Freemium has its flaws as well and as it goes with most apps, you must have something to sell yourself with and only a certain set of an audience would prefer buying a premium version of your product.
The next one on the list would be In-App Purchases. The idea of an in-app purchase is to satisfy a consumer without making them pay for anything at the start. Like when we talk about a game. Most games these days are supposed with in-app purchases. The idea is to allow even free users play the whole of the game which would make them go for a run at the start. Just when it hits them that they need more than free bounties to get them more from the game, that’s when to opt for buying value-added packs inside the game to let them play it more efficiently. Developers can make use of this by adding restrictions to a few things that can only be accessed once a user pays for it and this has gained market big time in the past half a decade.
What’s better is that purchasing a certain part of the product is easy and one doesn’t have to pay for things they wouldn’t want to have. This gives developers a way to maximize the conversion rate when offering add-ons.
There’s also a catch. While developing such a strategy for your app is easy, it needs constant maintenance in the form of regular updates, thus increasing the cost of the product that you need to tale care of.
In-app advertising is more of a happy thingy for both the users and the consumers and is the simplest way for you to make money off an app. All you have to do is make use of an advertising team, it could be AdMob or InMobi and make them place ads for you. But you’ve got to work on a lot many angles that might include sorting out users on the basis of their country of origin, the ad format and a unique way to impress them.
The most used approach when using in-app advertising is the one that counts the number of clicks and impressions. But it’s safe to say that this model has gone beyond its targeted future and it doesn’t fetch as much income like the rest of the approaches.
One other good way to earn money off your app is to advertise with third parties to fetch you something every time a user installs an app or successive apps on pop-ups. The CPI or the Cost per Install model takes all the essence of advertising to put it to use without actually annoying the users with an advertisement. When a user is about to terminate a session, your app must be made to suggest another app for free or a discounted price and thus adds a lifetime value to your app. Some CPI clients like Playhaven and Chartboost make way to integrate well inside your app, thus allowing you to act like a publisher and an advertiser at the same time.
Once you sort all this out, you’re still not done until you’re properly sponsored and sponsored well. Make contacts with the highest profile of the line of work your app is into and take as much as you get while promoting both you and the sponsor at the same time. Once you’ve sorted out the specific bunch of people you’re targeting your apps too, then it’s easier to sort a sponsor for you. For example, you’re designing an online payment service, you’ve got to make sure you’re backed up by a bank or a few of them. The aim is to enhance your brand by promoting them which gives you access to a larger top end market.
Okay. Now you’ve chosen a strategy and a sponsor for yourself. Are you done? No. Once all this is done, you have to analyze what you offer t what your competitors offer in the same field of work. You must figure out a way to constantly up your game when compared to what your competitors offer to the users. Details. That’s the key. Make your actions matter to the smallest level of details you could grasp in with.
All set? Now you’re wondering which store to hit your app with, aren’t you?
If you compare the gross downloads to the revenue earned through apps in the iOS and the Google play, you’ll find that the App Store gets more revenue with lower downloads than its Google counterpart. For its success, we’d suggest you go to the App Store but getting onto the App Store is no small feat. The approval process in itself takes longer and costs higher than any but if you’re planning to wait rather than getting lower revenue from an app in the Google Play Store, then the App Store is the right place for you to be.
Microsoft, on the other hand, has a clear-cut $99 registration fee after which you can keep your app(s) on display even if it’s supposed to be a paid app and you can thus benefit through third party clients on this one.
So, let’s recap all we’ve learnt from this. Define a monetisation strategy for your app, that’s the first thing you need to take care of. You don’t need advertising if your app isn’t meant to promote a business. Just the presence of an app can make you money. Expand your business by sponsoring a bigger brand or just choose to adore their site and get yourself to a wide variety of the market. That gets you access to a whole new range of opportunities and always stay updated with constant updates based on the kind of strategy you choose to go with. Sort out your targeted audience by choosing the store you want to showcase your top money making app with. Lastly, analyse and research on what makes you stand out from the crowd and what would define your app among the rest of the million. That’s your way to figuring out a way to define yourself to the world. And this is how you make some money from an app. Cheers!