The demand for a mobile app is enhancing swiftly day by day. With the advancing needs for user convenience and increased reliance on mobile phones, the app industry has reached unattainable heights in the past few years and is constantly touching new peaks. For obvious reasons, mobile developers have grown, and the number of mobile applications in the marketplace is breaking records. As a result, the value produced by the global mobile application industry has skyrocketed. Furthermore, with hybrid monetization paradigms that allow free downloads to the users yet enable the developers to make money, like in-app purchases and in-app ads gaining fame rapidly, the interest in development and investment in mobile apps has risen significantly.
Ideally, the foundation of any enterprise is to produce income. Without benefits, it is hard to sustain a long-term project. Just like any other business, making money from mobile applications is not an easy task, provided the application download rate of free apps is around 90% higher than that of paid apps. Therefore, you are not making any money directly. Nevertheless, the mobile application market is globally the highest value industry; therefore, even if you deploy free apps, there are ways to gain profits through them. Let’s see how you can generate revenue from free apps?
Earn with an application through micropayments
As we stated, users may download your application for free, but it does not have to imply that you cannot make revenue from that app. Mobile app development companies suggest that you must include certain premium features in your app that can entice your users to make payments to your business after getting impressed by the free version they download initially. You can allow some premium features once the user downloads and starts using your application. Mobile app developers in Dubai have complete freedom to build these micro-payments within the application. With the introduction of these integrated payments, you must identify the two ways you may accept the payment. The preeminent is a one-time payment. Users mostly prefer this type of payment mode as they are free to use the feature by just paying it once and unlocking it for all future use.
Remember using certain paid filters for a photo-editing application? Just unlock a filter once by viewing the ad or making the payment, and it is free to use after that.
The other kind of micropayment is quite the contrary. Now, this is the kind of payment that needs to be made for specific usage of premium features, and repayment is required each time your subscription or time duration ends.
This type of payment model is usually viewed in games wherein users can purchase a certain number of lives. But, once you purchase and consume these lives, you ought to get more to continue playing. So, in simple terms, these payments have expiry dates.
Make money with an app subscriptions
Subscriptions can be thought of as a recurring type of micropayment. Subscriptions have been a booming mode of making revenues from mobile applications. Be it a music-playing app like Spotify or a game like Candy Crush. Customarily, the applications that allow subscriptions are available for free downloads, but you require a subscription that is achieved by paying recurrently every time to get certain peculiarities. In most circumstances, this period is either yearly or monthly.
Generate ad revenues through your free app
Most mobile app development service offering companies will suggest you have advertisements to earn money through the free applications.
In the cases we have already seen, such as micropayments, subscription charges, the revenue is generated directly from the users. Therefore, your money comes from the user himself without any involvement of any external sources. Nevertheless, you can earn money through your app using third-party advertisements. The critical aspect here is that you must have enough viewers and value so that the third parties are ready to pay you for displaying their ads. This method works by renting out space on your application for the parties to let your users view recommendations of other applications, E-commerce campaigns, etc. Then, you can charge rates for the advertisements according to the visibility you will be able to provide to them. There are majorly two methods of doing so: one by connecting to the ad networks and getting your own advertisers. Let’s look into the two in detail one by one.
- Generate revenue with ad networks:
The prime method is to resort to ad channel calls. The ad networks are organizations interested in reaching developers and advertisers. The mobile app development company helps connect with efficient ad networks. Then, you simply ought to configure the time and space of these ads displays, and the ad channels will perform the rest of the work.
Google is, in fact, the largest ad network in the current times, and everyone is aware of this fact; you don’t even need to be a business person or a developer to know this.
- Getting the advertisers yourself:
The other option is to trade the space privately. Reach advertisers and fix the prices. In this case, you will have to handle the payments, the kinds of ads that your app will display, the analytics and records to clients, everything.
Many applications already use this mode of income now. Possibly, by apps gaining revenues through ads, a tiny application generated by an autonomous creator with typical banners and full-screen advertisements may come to mind. However, we use different applications regularly, much more vital, fitting this category perfectly. Have you wondered about applications like Facebook, Youtube, Twitter, or LinkedIn?
In all these applications, the users feel that they are using the applications free of cost, but what they don’t understand is, they are making payments through their information rather than the money.
These applications use all the obtained private information through registration, logging in, preferences, etc., that users provide them to trade advertising expenses to their advertisers. Information is a huge business today. Adopting an ad network possesses a significant advantage by allowing you to sell your advertising space without having to deal with the advertisers directly.
The ideology behind any business is making money and generating profits, without which any company fails to sustain long term. The same is the case with companies launching mobile applications. Everyone wants to make money, but on the other hand, analyzing the mobile application marketplace, be it Android, Windows, or iOs applications, it is observed that free apps get downloaded far more than the paid ones. However, you can make money by launching free apps by using cunning methods like the introduction of subscriptions and micropayments for premium features of the apps. In addition, you may also generate revenue by one of the leading monetization strategies in the software world, advertisements. So, it’s high time now, do not waste your ideas; get a mobile app developed by the best mobile app development companies and launch it for free while making profits.