How Can I Make Money From My App?
October 3, 2024If you are striving to find the right custom mobile app development company in UK and want to know how to make money out of it, this blog is for you.
As per the projection, mobile application industry is projected to reach £637.47 billion. As the free mobile application market has always outnumbered the paid ones in terms of download and profit numbers. Here is a common concern for app owners; how can free apps make money?
Stay Tuned!
Key Takeaways
- Benefit from core monetisation strategies like selling merchandise, in- app purchases, merchandise, advertising, sponsorship, and affiliate or referral marketing to create a stable income.
- Generate income from user data while maintaining robust privacy compliance, creating a perfect a balance between making a decent income and maintaining user trust.
Top 03 Revenue models For Generating Income For Free Application
Below are top 03 ways how free mobile applications can swiftly make money.
| Sr.No. | Methodology To Make Money | About The Mentioned Method | Top Apps Using This Method |
|---|---|---|---|
| 01 | Subscription Model | Users pay a recurring fee for accessing premium features. | Spotify, Netflix, Tinder |
| 02 | Sponsorship Model | Various brands pay to sponsor content or features within the app. | Twitch, Strava, Snapchat |
| 03 | Advertising Model | Revenue generated via displaying ads within the app. | Instagram, TikTok, Facebook |
Subscription Model
By various mobile app development companies in UK consider subscription strategy to be the most useful and finest app monetisation strategy. If you are brainstorming on how to monetise an app without ads, then you should consider opting a subscription method.
Which famous applications are benefitting from subscription method to make money? Spotify, Netflix, Tinder, Evernote, Hulu, and Dropbox are a few top application that are profiting using the subscription method.
Mobile app development company in UK who publish apps can decide to offer free content in their application for a limited amount of time and then charge a specific amount that will allow users to have access to full content without any restrictions.
In order to ease the integration of this revenue model, Apple is paying significant attention and making tremendous changes in how mobile application subscription models work. In the current model, Apple aims to maintain its current 70/30 revenue split for the first year of subscription. After a year, the new and improved 85/15 revenue share will automatically be implemented.
The main purpose for this format was to encourage application publishers to sell their mobile app for a recurring fees instead of a one-time cost. Besides this, only 5% of the most popular and successful apps are employing a subscription revenue model or developing subscription-based apps.
However, before concluding this business model, let us have a look at this method’s pros and cons.
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It is an ideal model for cloud services that offer audio and video content, i.e., Spotify.
In this model, transitioning from a one-time fee to a monthly charge can upshot in serious backlash from present users.Sponsorship Model
Sponsorship model is one of the least used monetisation methods, however, it can still be an interesting strategy.
In simple words, sponsorship in your mobile app can be a great monetisation strategy if the mobile app publisher codes the right niche application for a targeted audience and launch it on behalf of another company.
Like websites, publishers are required to consider sponsors whose target audience is the same as the one being addressed by the application. Before building the app, creating a list of organisations and brands that could benefit from the partnership is a good starting point.
Before we move on to the next method, let’s take a look at its pros and cons that will assist you in deciding whether to opt for this monetisation model for your free app or not.
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Advertising Model
Advertising is probably the most used and easiest to implement when it comes to free application to generate an income. Also, it is done through third-party ad network.
In this model you just need to display commercial inside your application or opt for affiliate marketing and get paid from third-party ad networks. In addition, advertising is considered the easiest way to earn money for application. You are solely required to portray your commercials within the application, hence you can only be paid swiftly from third-party commercials and networks.
Typically, the application owners are paid when the user hits or clicks the advertisement, or when the user installs the app through the ad, the app owner earns the commission. You can also get paid every time an advertisement is displayed, per click on the application, and when a user installs the advertised app. being a free version application, you can also run ad campaigns to create ad revenue for a particular period of time.
There are mainly 04 types of display advertisements that are showed by the application providers for monetisation.
- Banner ads
- Interstitial ads
- Native ads
- In-app video ads
As a trusted mobile app development company in UK, we would recommend that as an app owner you are required to monitor whether your targeted audience is finding these ads pleasing or are they ad blocking.
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Closing Note
With so many various app monetisation models available to make money with application, it is essential to note that each method has its own perks and drawbacks to offer while monetisation of the application. Therefore, when you start working with a reliable mobile app development company in UK, you should keep your target audience and structure in mind.
