There is a huge potential for making mobile apps. Of course you build apps not for the sake of fun, but building apps is a serious business. After All, you need money to keep going all the time and we call this as monetization of apps. There are wide array of options for monetization of your app and you need to choose some to be adopted for your organization.
You can earn billions of dollars through your app development company, but most of the money is only earned through certain types only. As 80 % of internet users own smartphones, we see a massive flux of startups and entrepreneurs flocking to gain an advantage of the mobility space.
You need to pick the correct monetization model for really making your mobile app successful.
Choosing the Right Model on Monetization
Here are some of these models on monetization:
- Freemium for apps and games
- Paid Apps
- One-time Paid Apps
- Free Apps with Advertising
Freemium for apps and games
The most popular among the models is freemium. The in-app purchases fetch 76 % of revenue in the Apple App Store in US alone. The users are entitled for a freemium version of the app or game, with limited features, but a premium version comes with in-app purchases. The free app will lower the barrier for price, so that the users can simply download the apps, proving its value to the users.
This is a hybrid monetization model that has gained traction just recently. It might sound unfair for the users to pay money for downloading the app as well as availing additional features.
One-time Paid Apps
In this, the users are expected to make one-time payment for downloading the app. The rest of the features are offered free. So, there is no repeat revenue from the existing customers. Emphasis must be laid on building a compelling app that the users can download, without any sampling, whatsoever. The utility apps fall under this category.
Free Apps with Advertising
No money is needed for downloading these apps, but advertisments, non-intrusive in nature will appear, as long as the apps are in use. So, the app will make money when a large number of users download and then start using the app frequently.
Picking the Correct Platform for your App is Essential
Choosing the right platform can greatly affect your app earning potential because smartphone market penetration and platform popularity is a crucial part of app downloads, and hence, app success. A recent report published by scribd shows those app developers earning $5,000 or more per month on their apps. And, the leader in this category is Apple’s iOS platform with over 25% of its developers earning over $5,000 per month. Approx 16% of its app developers in Android earn over $5,000 per month in revenue. However, due to its increased popularity and rapid adoption rate, it is worth noting that Android is much more ‘top heavy’ in terms of earnings with much of its total revenue being earned by its top developers. And, the Apple’s iOS platform has its overall earnings more spread out, increasing the chances to make money via their app market.
Apps Are Going Beyond SmartPhones
Nowadays, apps have started branching out from the mobile platform and becoming a part of more integrated smart devices after the smart devices have started entering the technological space. Smart Watches, TVs and Glasses etc have already started to show their promise with 34% of internet users taking advantage of their connectivity. However, convincing people to download your app on Smart TVs can be a difficult task, but if it works smooth on the platform then it can be a potent companion tool. Hence, the expansion of platform not only increases exposure to your app but also helps in opening it to a new revenue streams.
Another fascinating platform that is captivating attention is Smart Watches. However, as a relatively new and emerging device, their current usage numbers are small, with only about 9% of internet users reported that they are making use of them. But, tech giants such as Samsung, Sony and Apple entering into the SmartWatch market, it is one of the platforms to watch for in future growth opportunities.
However, offering your app services to Smart devices platforms is a great option, but not really viable for every app.
The app market has shown substantial growth since it’s inception and it shows no signs of slowing down as well. However, the app market may have become a bit oversaturated but it is promising for the iOS and the Android developers fairing well.
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