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How free apps generate revenue: Industry Secrets
by App My Site DIY App BuilderMobile apps have taken the world by storm. This magnificent technology has brought the world on our palmtops and made our lives easier. In fact, it has now become a new source of revenue for businesses worldwide.
Brands are getting better recognition and more customers as apps are helping them expand and reach out to potential customers who are mobile users. Besides, those who have created apps via traditional methods or with WooCommerce and WordPress app builder tools, are also generating revenue through apps.
It is a myth that only paid apps are capable of generating revenue. On the contrary, 96% apps on Google Play store and 90.3% apps on Apple App Store are free, and are already generating a revenue of $71.3. So, what is the formula behind their success? Read further and find out our step by step guide and the various aspects related to app monetization.
Step 1: Set your strategy straight
The number of app users is increasing everyday and most of them are those who seek free apps. This mCommerce market has immense potential and is set to expand more in the future. In order to tap into this potential market, you must move ahead with a promising and strong approach.
The best strategies and techniques of app monetization have been discussed below:
Carry out research:
Research is the key to success in any sphere. Before you venture into the mCommerce market, you must be aware of the ground and its trends. Know what the purpose of your app is and how is it valuable for the potential users who will download it. Also carry out a competitive research and know what your competitors are doing. Know what can work best for you and implement it.
Identify your targets:
It is important to know your targets and set the right goals if you expect to realize your full potential. Identify your target audience, your potential market, your business goals, your marketing path and channel and then proceed to make investments. This will also help you in detecting the loopholes in your plan, if any.
Measure your resources:
It is not reasonable to have a plan that is beyond the scope of your execution. Hence, carefully fathom the resources that you have at your disposal. Calculate your finances, lay out your budget and also measure the potential of other resources. Consider all the factors and draft out a plan that has the ability to harness your resources to the fullest and generate best results.
Step 2: Choose your monetization model
It might interest you to know that only 5 to 10% of mobile app users are ready to pay for using a mobile app. But the good news is that free apps can generate more revenue than paid apps. All you need, is the implementation of right techniques that the other free app providers use.
The best monetization tools and models have been discussed below:
Advertising & Affiliate Marketing:
Advertising is the most common technique of revenue-generation by free apps and seven out of ten app providers use it. You can promote other businesses and run their ads. You can run banner ads, rewarded or generic video ads, the not-so-irritating native ads, and the pop-up ads which are also known as interstitial ads.
Determine what are the types of ads that your users will not mind flashing on your app and go for it. Earn money from the advertisers by selling their products and regulating the transaction chain by applying any one of the following methods:
Cost per mile (CPM): Get paid for every milestone, like 1000 views on the ad.
Cost per click (CPC): Get paid when app users choose to view the ad.
Cost per view (CPV): Charge for number of ad views or interactions.
Cost per install (CPI): Get paid every time an app user installs another featured app.
Freemium Technique:
It is a smart way of generating revenue and identifying users who are genuinely interested in your app and app features. Allow users to download and install the app for free. Also, let them use the basic features for free, but charge them for more advanced features and upgrades.
It is the go-to technique being used by gaming and music apps these days. You can apply the same revenue model and earn money through your apps.
Transactional Earnings:
If you own an app where people make transactions and use it to send and receive money, this model is the most suitable for you. You can let people use the app for free but charge them for every transaction they make.
Set a fixed amount to be charged on certain transaction and use this ratio to ensure your share of profit. The larger the payment, the heavier profit you can gain. You can also devise your own plan and fix your own amount.
In-app purchases:
This is another popular purchase model used by app owners. Here, you give away your app and app features for free but charge people for certain benefits they wish to unlock and use.
You can charge people for consumable commodities like digital points, tokens, mileage coupons or for more permanent items like new game levels, back up features or more.
Paid subscriptions:
This model is being practiced by video streaming apps and content providing apps these days. Such apps are free to download and also offer a free trial period to users. One can consume the content and use the app and if satisfied, can proceed to buying long term subscriptions.
You can either give a one-time subscription or divide it into packages based on tiers, time, features and more. The subscriptions can be auto-renewable or renewable as per choice.
Sponsorship:
Sponsorship model is somewhat similar to advertisements but has a different approach, marketing model and implementation technique altogether. You must fathom the nature and usage of your app and then look for sponsors who identify with your goals. You can then run the sponsors’ ads directly or place and endorse it smartly within the app content.
For example, if you own a health app, you can partner with fitness centres, health clinics, medical practitioners, hospitals, administrative bodies for health and welfare, and more. This way, you will be able to develop a win-win partnership, as both you and your sponsors will be able to attract their target audience and generate revenue.
Crowdfunding:
If you feel that your app has the potential to change lives and facilitate social welfare by aiding a cause that can benefit mankind, this model is for you. It works best for the budding app owners and start-ups. You will need to move ahead with an honest-to-goodness approach and be clear about your goals.
Have a compelling story and market your idea well to attract people who will help you raise funds and contribute to your goals. For example, if your app is about mental health awareness, you can seek help from organizations and people who support similar goals and are already working or willing to work in this direction.
Step 3: Act on your plan
All the various aspects related to free app monetization techniques have been discussed above. However, to earn money by selling a product, you must have the best quality product first.
To apply the models, strategies and techniques discussed above, you need an efficient native app. If you still don’t have a free app that has the ability to woo users to install and use it, get one now. Contact AppMySite, the best mobile app builder, and build a premium AI technology powered app without coding.
Sign up, create and publish your app in no time and start earning revenue. It’s as simple as that. But, to realize your dreams, you need to act first. Waste no second and proceed now. Make a free app of your own and start making money by applying the sure shot industry secrets discussed above.Sponsor Ads
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Created on Feb 6th 2020 05:37. Viewed 475 times.
