Mobile Apps in Making Money

With the mobile industry growing insanely fast than any other company, mobile apps are the need of the hour. Mobile apps make money for a company more conveniently than any other source. It is therefore become mandatory to have a deep insight on how the mobile apps make money for a company. The purpose of building an app has always been pretty clear- making profit. You must want the money and effort that is invested to make an app to be rewarded, and make lots of money. We are the Leading mobile app development company who can help you to start building your own app and making money through it. One thing that should be kept in mind during the initial steps of building and marketing an app is  taking care of what monetization model is to be used to target audiences.

Monetization Models for Earning money through a mobile app

There are broadly four such monetization models that are followed by masses in order to maximize profit. These are:

1. Freemium for Mobile apps and games: This is undoubtedly the most revenue generating monetization model used for apps and other games.Statistics report about 76% of all revenue to be associated with in app purchases in Apple app stores in the U.S. and about 90% in the Asian markets. Other benefits of Freemium apps for mobile apps include being free-of -charge to the user with limited feautures
2. One time paid Mobile app: These kind of mobile apps include apps which are not free to use, and involve one time investment by the users and free subsequent upgrades and in app downloads. For this particular type of model, an apps needs to be extremely attractive to the user in order for him to buy it instantly without any free trials.
3. Paid Mobile apps with added paid features: This monetization model involves Mobile apps in which users have to invest an initial signing up money, and then for several other features of the app. Upgrades and downloads become an integral way of earning revenues in such models. But an overall advantage lies in the fact that the mobile app keeps the user as involved as he wants to be.
4. Free mobile apps with advertising: This is, in my opinion and according to other statistical analysis, one of the most successful models for mobile apps to grow viral in no time. Unlike the other three models, this does not involve an initial investment from the user. It also has proved to be better in function in prolonged usages by the user.

How does an app make money?

There is abundant information on how apps make money but the only problem is that it is limited to only revenue generated by in-app purchases and advertising. Unlikely to these limited options, an app makes money through many different way. Some of these ways are mentioned below-

1. Sponsorships : Just like websites, mobile apps need to get people and other companies to sponsor their app. The overall idea is to build a quite functional app with more and more target audience.

Once an app is sponsored by a big brand (with large online followings), the apps needs to mould itself into the form that reflects its sponsors name. The mobile apps are henceforth paid for that.

2. Subscriptions : The mobile app in such monetization model is given for free to the users. It is for apps that have regular content posted on them at frequent intervals. The users are supposed to subscribe newly added data in the app.
3. E-mail marketing: A Mobile app, just like the regular websites can provide an opportunity to collect different email addresses and send people offers, via mail. This model is generally underused but the big players tend to take advantage of it.
4. Freemium upsell: These apps are free to download, and have a lot of in-app purchases. The mobile apps using this model tend to make money when the user buys their fully functional version through an in-app purchase.

There are both pros and cons to this technique. The advantage being that the model is free from resistance to download as the options are cleared out. The disadvantage is that not all its customers or to say, very few of its customers turn into payable customers.

6. Advertising: Advertisements present in a mobile app earn the most of revenue for a company. Content optimization along with linking advertisements to the kind of content posted drives customers to click on that particular advertisement, leading to generation of revenue. Different kind of payments in advertisements in a mobile app include
   1. banner advertisements.
   2. interstitial advertisement.
   3. video advertisements: (on demand)
   4. native advertisements
7. In-app purchases : The most common method of revenue generation in a mobile app is through in-app purchases. These products could be of upgrades or other physical products from the company.
8. Selling merchandise: This is a great way to attract users to your company. Using your mobile app, or through email marketing you can sell physical goods built according to your brand . This not only brings your brand in notice of the masses but also increases your revenue generation.
9. Amazon Underground: This model involves apps that are privately available on the Amazon. It is a relatively newer way for developers to make money in the Amazon app, but is now trending among developers who struggle to earn through in-app purachases. Amazon pays developers $0.02 per minute per user.
10. Affiliate income: This kind of model includes promoting and selling someone else’s products or services in exchange for some part of the revenues they make. These products could be anything from physical goods to other software

Where does an app make money?

It is important to take care of what platform an app is made on, for analyzing how much revenue it generates. The platform drives users to a particular app on the basis of its image and brand name. It is observed that 64% of users prefer mobile apps due to their convenience and easiness to use. Statistics have reported that some platform works exceedingly better than the rest due to a variety of reasons. Apple IOS platform is the leader in the business. On the basis of analyzed data, some of the platforms that a company should completely avoid are BlBlackBerry and windows mobile platform. The sole reason for the removal of these platforms from the big boy’s list is their inability to attract customers or poor market penetration. Both these platforms have shown results in the past but are now turning old.

How much money does an app make?

There is a lot of money you can make from a mobile app. The global revenue from just mobile apps has increased from $25 billion dollars in 2014 to more than $46 billion in 2016. So, undoubtedly apps are big businesses. A mobile application, therefore, can get you a bucket full of money in no time, if handled carefully. The study of what options you have and the goals should be set at first before designing a particular application.