How to make money from apps?
Is it possible?
Yes, there are numerous ways where you can generate revenue just by creating a seamless mobile application.
According to the Statistics Portal Statista, the expected revenue generated in 2017 through free applications was $37 billion. Compared to that, paid apps generated revenue of $29 billion.
This is the tendency of users not to pay for applications and thus, free apps steal the show. That’s how brainy entrepreneurs found some solid lucrative ways of monetization through free apps.
Let’s discuss this in detail-
How do apps make money?
1. Mobile Advertising
Mobile Marketing is one of the best ways to showcase your business to mobile users. More than 3.5 billion are mobile users including the global stats. This reflects a huge scope of mobile marketing.
Almost, 68% of the companies are running their business integrating with mobile advertising. Thus, you can create a mobile application for making money with apps android and iOS.
According to Sweetpricing report, there are nearly 32.5% of mobile providers rely solely on in-app advertising. 65% already use in-app as the finest monetizing method.
- First by releasing any ad (as per the impression)
- Secondly, when someone clicks
- Finally when users install the application via an ad
Have you ever heard about inventory monetizing?
Native and Banner ads and interstitials are the ideal sources for activating inventory monetization. Let’s discuss this in detail-
Native and Banner Ads
Banner Ads come in various sizes and shapes that are more graphic/image-based than text-based. It is one of the oldest yet effective forms of advertising. This helps you in-
- Measuring the performance
- Promoting the sponsorships
- Attract the audience with interesting content
Interstitial Ads are those ads that cover your entire screen of the mobile. However, you can review it or cancel the ad from the top corner button. This kind of ad is effective in capturing the attention of users.
The main objective is to break the attention and draw their focus to the ad. However, it is essential to blend it with creativity to boost the engagement rate.
- Elevates the click-through rate
- Adds a significant relevance to your brand
- Increase brand awareness and brand positioning
So, that’s how you can generate leads and earn money from mobile apps.
Subscription is another way to make money from apps. Here, the app publishers first provide you with free content and later on, ask you for a subscription to have free access to a plethora of content once subscribed.
Various applications also provide you with a free trial to make you feel comprehended by the application. This is considered the best way to build the loyalty of users enabling convenience in converting them for a longer run.
A free trial is a good way to let users test your products. It is encouraged at the initial level to create a brand identity. So, connect with the best Mobile App Development Company to create apps.
It gives you an answer for how to earn money from a mobile application. This strategy ideally works for video streaming, cloud services, audio, or any online news services.
3. Selling Merchandise
Selling merchandise within the free mobile application is an interesting feature. The various business groups especially from the e-commerce sector are involved in merchandising.
They give free gifts like toys, garments, accessories, or any stationery to arouse the interest of the users. These goods are directly sold through the application via email marketing.
Did you know Amazon has started selling merchandise called Merch by Amazon?
The main intention is to encourage app publishers and give them the flexibility to create and upload the best artwork promoting their business products or services.
Now, this turns out to be a win-win situation for both- app users and app owners. You can hire developers to create an app and then prepare strategies on how to make money from apps.
This is the most trusted and ideal way for companies who master the art – of how apps make money.
4. In-App Purchase
In-app is quite relevant to the user’s point of view. It provides additional bonuses, virtual coins or currency, or any sort of premium content for unlocking to the next higher level.
This is working strongly on the concept of –a freemium model where you can upgrade to the premium version to encash the most advanced features and facilities.
You can hire an Android App Development Company to build the business application and frame strategies for how to make money creating apps for Android. It has a wider scope.
According to Forbes, in-app Purchase generates the highest revenue. Give it a try now!
Are you wondering how to make money from apps through Sponsorship?
Yes, it is possible.
But, the important point is, that you need to find a sponsor that meets the requirements of your target audience.
Once you manage to get it, add the white label to your application. It is more of a collaborative approach where two companies jointly work, complementing each other to raise the profits.
Through this, you can outstand your brand from the crowd of competitors by giving really good discounts and offers.
Crowdfunding is one of the lucrative ways of making money through an application. On a precise note, this technique is used for raising money through mobile applications.
As per the report of Mobile Growth Stack, crowdfunding works best for non-gaming platforms. For example, various companies pitch their start-up, new app ideas, or new product idea on – Crowd Supply, Kickstarter, Chuffed, Patreon, and Fundable to raise money as a part of financial assistance.
Along with that, you can create an application with iOS App Development for Charitable trusts and accept donations digitally through the app. So, now, if you wonder, how do apps make money, this is the strategy.
7. Affiliate Program
Mobile affiliate program brings the affiliate partner and mobile advertiser on the same ground. Affiliate partners are those who manage the performance of advertising for the advertisers.
With collaboration, mobile owners can advertise their applications and earn significant revenue through affiliates. That’s how android apps make money.
- When someone clicks your ad and installs the app, you generate revenue (Cost Per Action)
- Another is, the revenue-sharing model that works on a proportionate basis
These plans soar up your business exponentially.
8. Referral Marketing
Have you ever heard of referral marketing?
Can one earn by referring to third-party products?
How to make money creating apps for Android and iOS for referral marketing?
Referral Marketing is the newest trend of earning by recommending third-party services or products for optimizing revenue opportunities.
It is based on several imperative models like-
Cost per action (CPA):
You promote third-party apps and advertise with the pop-ups to earn revenue.
Cost per click (CPC):
You earn revenue by the number of clicks you have received on a displayed ad.
Cost per view (CPV):
You earn revenue based on impressions and the number of ad interactions per view.
Cost per install (CPI):
You install the advertised app and get paid through it.
Collecting and selling users behavioral data
Applications are a one-stop destination for collecting a large scale of information about the users. These user behavioral data is of paramount importance for the research firms.
So, when you download any application, you have to submit the information to get started. And this is how free apps make money. The data primarily consists of-
- The email addresses of users
- Personal preferences
- Social media account
Through this, you can either track the behavior, habits, and preferences of users or utilize the information to strengthen the customer base. Also, run the display ads to increase the impression.
9. Amazon Underground
Can you think of making money through the Amazon App Store? In fact, in the real sense, it shows you how to make money from apps. It provides all the premium features to its newcomers to unlimited access.
Amazon Underground is an independent app store where you can get paid users for your application. Here, you can go for –
- In-app purchases
- Outright sales
- Advertising the business
10. Transaction fees
Charging transaction fees in the free application is another way to make money. This strategy is viable only when your app users require a transaction of money. Especially, when buyers and sellers are highly involved and require a marketplace for integrating with the third party.
To enable this feature, you need to hire mobile app developers to code the payment gateways. It includes a few of the niches like-
- Food ordering applications
- Hotel and flight booking applications
- All e-commerce merchandising applications
How you can Earn Money from Free Apps?
The revenue market for free applications is wider and has apps that can help you make money. All you need to do is follow these proven strategies to establish a stimulated revenue model.
From running ads to managing the affiliate program, earning revenue from free apps is no more challenging. All you need is to select the right target audience and rightly pitch your application.
According to Flurry Analytics, Mobile App usage Grows by 6% every year and year. So, if you haven’t built the mobile application yet, contact us now!
Info Stans is the trusted Mobile Application Development Company in India and the USA. Our experienced developers will sit with you and design a personalized app as per your requirements.
Don’t miss such a golden opportunity. Call us today and Start Monetizing!
● Through white labeling
● Referral program