Some of the most famous apps are addicting games that can distract you for hours, but apps aren’t all fun and games. Developers look at apps as a business, so they build apps with the goal of making money in mind. Fortunately, there are a number of ways that you can make money off of your app.
One-Time Purchase Fee
Instead of offering the app to customers for free, many businesses choose to charge them a small fee for downloading the app. Customers will only pay this fee once, then they will have access to all of the features within your app. If you choose to make money off of your app using this tactic, make sure that you have designed an app that is intriguing enough to get people to pay for the initial download. Remember, there are many free apps in the app store, so yours has to stand out.
You should also conduct market research to determine an appropriate price for your app. Search through the app store to find out what your competitors are charging (if anything) and what they offer in exchange for the price. Once you launch, don’t be afraid to adjust the price if customers aren’t responding the way that you expected.
Freemium Apps
The freemium model generates more revenue than other monetization tactics. What is it? Customers can download freemium apps for free in the app store. Once it’s on their device, customers will be able to use basic features within the app in order to get a better idea of what it has to offer. But, if they want access to any of the premium features, they must pay for them through an in-app purchase. It’s estimated that in-app purchases account for 76% of all revenue generated through the Apple app store, so clearly this tactic works well.
Advertising
Another great way to make money off of your app is through in-app advertising. With this tactic, you won’t be making money off of the people who download your app. Instead, you will be selling ad space on your app to other brands that are interested in reaching your customers.
If you choose this tactic, be mindful of how many advertisements you include within the app. Customers may be turned off by apps that feature an endless stream of advertisements. If it affects their ability to use the app, they will probably stop using it. It’s also important to note that you will not make money with this tactic in the beginning. Advertisers will only buy space from you if you have a lot of active users. Therefore, it may be difficult to find advertisers that are interested in working with you while you are still building up a strong customer base.
How will you make money through your app? It’s important to understand how you will be monetizing the app before you develop it. Carefully review each of these different options and make this decision prior to building your app. It will be much easier to design an app once you know how you will be able to profit off of it!