Mobile Application Development | 11 Min Read
Posted on: Thursday June 10, 2021Reading Time: 11 minutes
Mobile app development actually makes a lot of money if you plan it the right way and deploy an application with a well-framed business model along with a well-thought monetary aspect. While mobile applications prove to be a great way to enhance the business for merchants and aid them to gather higher revenue, they also prove a great way of making money without being associated with E-commerce. Mobile applications can have their purpose and target visitors. Not to mention, social media applications are hitting revenue records, be it Snapchat, Instagram, or whatnot! The purpose of your application must be to make your business grow and reach more visitors and eventually get higher downloads. If it resembles what you have in mind, there is money in it for sure!
With all due excitement you have for making money through your application, you must be in a position to accept that it doesn’t happen immediately. As businesses take time to get established, so do applications need time to monetize and attain profits. However, the best part is, you don’t have to wait forever to gain profits; you need an effective strategy that helps boost the entire process. Here are some pointers to assist you to formulate a well-established approach to your mobile application:-
App Monetization Strategy Formation
Before you begin to question, here is a fun fact which will get your morale high: almost 78% of the time per day is spent on mobiles, ask business person, homemakers, students, or anyone else. They can confirm, and if they can’t, you can speak for yourself! People love using applications. Hence, the opportunities are in abundance, just hit the right spot! The key is obtaining how to pick a perfect mobile app that will raise user engagement and eventually get downloads. While this seems exciting, you need to recognize that downloads don’t immediately convert to money.
There is a lot of backend costs involved before you start making money through these apps. A mobile app development company clearly states that building an app is not cheap; you will encounter hidden costs apart from the upfront investment you make along the run. It is wise to consider your idea is profitable before you build an application out for it.
Here’s a compilation of all the facts you must understand.
In-App purchases v/s a Mobile Site, which generates better profits?
If you are a business owner already, you may already possess a website for your business; it’s safe to assume as we live in a digital era where nothing survives unless it has a prominent presence on the internet. We are also assuming your site has already been optimized for mobile devices or has a mobile version. For those who don’t, get that done right away! The next thing is to get a mobile application!
Here’s why we are in favor of mobile applications delivering better profits compared to websites:-
Monetization Methods For Free Apps v/s Paid Apps
Most of the applications are launched free to download for users across the globe in their initial phases. This could be for varied reasons, including the mobile development company that wants to test the app quickly. The app is still being enhanced according to user feedback. The app owner wishes to gain loyal users and offer customers a glimpse of what the app looks like. However, you may also charge them a downloading fee which usually turns off the users; hence, it is the way to go only when you have an exclusive service or product to offer and are cent percent confident on your mobile application backed with enough statistical market research and competitor analysis. With this strategy, you would make a better revenue per download, but the download numbers may not be as high.
One benefit of launching paid applications is they are the best way to attain more loyal customers. They are willing to pay you initially means they are already enticed to your product and are okay to invest in something they feel worthy of.
Most of the time, the best way to go is launching the free application and adding a few in-app purchases or subscription charges. These may include charging your customers for using premium features and exclusive offers by giving them an initial feel of the application, making them comfortable spending a little money on your application. This method appeals to them on a psychological level and has better monetization results. With free apps, you may get more downloads with fewer engaged users. While this idea may sound disheartening, you have another way to look at it. It doesn’t incur any charge on you for a user downloading your app for free, even if they never use it again! There is zero loss on this. In addition, you can add advertisement space to your application which will still get you some revenue if not the most. With higher downloads, your advertisement charges go up, and hence, there’s money shining.
Moreover, you can offer a chargeable premium subscription which provides users some additional features which are not available on the free version and get the revenue conversion directly.
“Not all mobile applications make money,” it is on you what you launch and present to the users. Your application can prove to be highly profitable if you go about it the right way, thinking about all the prospects of it and building a business model for your application which consist of detailed information about your plans on launching your application- which platform it will launch on, whether it will be a free app or a paid app, will it have additional in-app purchases, does it include any subscription charge, or if it has a feature of premium usage which would be chargeable! These things need to be decided beforehand, and if things look blooming, you surely would want to get your ideas turned into reality.