While the question of software development seems to be a complex, yet understandable process, the question of making money on different sorts of apps stays on quite tricky.
What’s more, this aspect will impact tremendously how your mobile app looks and interacts with users. This is why it’s crucial to choose the most appropriate business model for your market and product at the initial stage of the project.
I’m going to break down 5 major monetization strategies to demonstrate how to make money with an app.
How to make an app and make money
This one is the most appealing to the majority of users because of they are able to download your app for free. Basically, they agree to provide you with their personal info so that in some time after collecting a strong user base, you sell data-driven advertising space.
As a matter of fact, users get to see small banners or popups with ads at the top or bottom of the app. These can video ads or redirections to advertiser’s website.
This is an obvious strategy, which appeals to online shops. You get your money from selling products or services through the mobile app. In other words, this is the e-commerce mobile app – a solid (and sometimes a single – m-commerce) sales channel.
N.B.: Mind that the app store you publish your app on will take a cut of the revenues from good sold through it.
In this case, the mobile app is downloaded for free, but the available functionality will be cut. Some features aren’t available before user buys a premium membership.
That’s an easy one – you assign a fixed price for every app download. How to make money from an app here – set a fair price and make sure your target audience doesn’t mind to buy paid content straight.
This strategy is much alike the freemium one, but the difference is your subscribers agree to pay a monthly fee for certain content for some period of time. So this helps a lot to get your revenues on a recurring basis. Usually, these models are starting with free trial periods to test out the service before committing.
How much money can an app make
The only advice I would give before choosing a monetization model for your app – go explore the market, find out preferences and habits of your audience and create an image of your customer. This will give all the needed insights and help with the choice.