In the experience of our company there was not a single case where a mobile app was developed for the sake of just having it. The purposes for which the product is developed can be different: to improve work processes, to attract new clients, to complement the existing service, to make a profit.
In this article, we’ll talk about what it takes to create a good app and figure out how to make money from it.
The secret of a perfect app
Every app starts with an idea. You have to think about every single detail of your app: what you want it to do, who it’s for, how it should look and, of course, how you want to make money with it.
Get acquainted with your competitors’ apps, highlight the ones you like and try to understand what makes them attractive. Study the market in which you are going to distribute the application, analyze supply and demand.
Choose a platform for your future app. The chosen platform determines in many ways the success of the product. The most popular platforms for mobile devices today are Android and iOS. It is important to understand which one is best suited to your interests. OSs differ not only in the number of devices used worldwide, but also in the average bill and the purchasing power of users.
If the budget allows, it is better to create an application for two platforms at once, so you can reach more users and get more profits in the future.
Give your ideas and work in progress to developers and designers who will take care of creating the app of your dreams.
Monetization of the app
When all the details are agreed upon, the contract with the developer is signed and the full work on the app starts, you need to understand how you can (and will) make money with the app.
Advertising inside the app
Advertising is the most popular method of in-app monetization. If you’re planning to place ad units, then you need to allocate a special place in the interface to show ads so that they can be seen, but they don’t interfere with the use of your product.
For each user click on such ads, you’ll receive remuneration from the advertiser. The app can also show ads that, when viewed, reward the user with a bonus in the game or app (e.g., extra lives, discounts, game bonuses).
Earnings from ads can vary and depend on the number of ads and how you place them. It seems like easy money, but remember that a sense of proportion is important with advertising. Users don’t like frequent commercials and flickering banners on all sides, too many ads can discourage them from using your product.
Let’s talk more about the types of ads that come in apps.
Banners:
- pop-ups (ads that open in a new browser window);
- notifications ( push up notifications that appear in the notification bar of your smartphone);
- native ads (ads that blend in with the content. More often perceived as an advice or recommendation than as an advertisement).
Sponsorship
Many large and well-known developers promote other companies through sponsorship. For example, a small company develops an app and a larger company releases a product under its own name. This is not an appropriation of someone else’s work, but an opportunity to provide the small company with the necessary facilities to work on the application.
The larger company will get a good product, which will have a positive effect on reputation and income. The pros of a development company depend on the type of sponsorship. It can either be a monthly sponsorship fee or a prearranged division of the revenue generated by the app.
Sponsorships are good because they can help increase the audience and promote the app to the sponsoring company’s customers.
In-app purchases.
You can sell various things within the app: premium photo/video app filters, additional content, in-game currency to buy special in-game items, other bonuses.
All purchases can be divided into 3 types:
- consumable (disposable) – a purchase can only be used once. After use a paid feature will not be available to the user until he buys it again;
- Perpetual – the user buys the function and can use it permanently;
- subscriptions – the user buys a particular feature that will be available for a limited period of time. For example, a subscription to Spotify , Netflix , Habitica , a subscription to an electronic version of a magazine or an online library.
In-app purchases can also include an ad-blocking service for a certain period (YouTube Premium is a good example). For this type of monetization, high-quality content is a prerequisite, which encourages users to make regular in-app purchases.
Paid application
Paid products are considered to be easy to make money from: users pay a certain amount of money for their use (monthly or by paying for the purchase of the application on a one-time basis). However, it is important for people to understand exactly what they are buying, to get acquainted with the application before buying, and not to pay money for a “pig in a poke”.
In some situations it is easier to make profit from free apps by offering users to make in-app purchases or by showing ads within the product.
You can make good money on a paid app, of course. Provide a test period to get acquainted with the product, during which you can use the application for free, get acquainted with all its features and understand whether it is worth buying and whether it copes with its tasks.