Ever thought about making money from free apps? This article is for entrepreneurs who want to learn — how to create an app to earn passive revenue by publishing free apps in the mobile app market free and make money or make money with apps!
Since the free apps market is always higher than the paid ones (in terms of profits and download numbers), many people often ask a simple question — how much money do apps make. Ever thought about making money from apps?
The importance of mobile applications is well established for all sizes, budgets, and niche businesses.
Mobile applications are crucial for any business, not only for delicate business operations and performance but also as a dedicated channel for revenue generation. As a mobile app development company, one of the questions we usually ask is — how do apps make money.
The fact is that 98% of global revenue comes from free apps, according to Google Play. And, you need to think more about the app monetization strategy.
The difference between free apps and paid apps
Paid apps
a) The payment app has fewer downloads, you automatically lose potential clients who are reluctant to pay.
b) High User Expectation — You need to make sure that your app is working flawlessly and offers full features.
c) The development and design of paid applications are very high.
d) Despite the great reviews, people are less likely to buy the app if they can’t try it first.
Free apps
a) These apps clearly attract more target users and increase visibility and downloads.
b) To get, great reviews, these apps are a great way to optimize your app in the app store.
c) They are less expensive as they are not more complicated than the paid ones.
d) They help build a brand image and name in the online world.
So you can clearly see that there are so many different ways to make money with app development, but what are the top options here? How do people make money from free apps in these ways?
There are many ways to make money from your app, which you should explore and research. Some of these ways may require you to charge your customers, while others may not.
Free apps make money using one of these 10 app monetization strategies:
a) Advertising
b) Subscriptions
c) Merchandise sale
d) In-app purchases
e) Sponsorship
f) Referral marketing
g) Collecting and selling data
h) Physical purchases
i)Transaction fee
j) Crowdfunding
How much money can you make from the app?
A mobile app has the potential to bring in billions of dollars a year, but there are very few apps that will eventually reach that number. A surprising number of mobile apps are definitely not making money. Therefore, it is not really possible to actually come up with a normal number of bats.
To get a clearer idea of what this means, let me tell you this — the top 200 apps in the App Store earn 500 82,500 per day. Now if we expand these standards and look at the top 800 apps in the Play Store, this number drops to 500 3,500 per day!
Advertising
The free app is very simple and easy to implement ads when making money. This is also done through a third-party advertising network.
Apps are very easy to use ads to make money and make money. The app owner must display commercials or affiliate marketing in their mobile application and receive money from third-party advertising networks.
There are basically 4 types of display ads displayed by app providers for monetization. But, as an app owner, you need to monitor whether targeted users find these ads entertaining or whether they are blocking them.
a) Interstitial ads
b) Banner ads
c) In-app video ads
d) Native ads
e) Rewarded Videos
Subscriptions
Subscriptions are a very useful money-making strategy. App publishers can choose to provide free content for a limited time in their apps and charge users a subscription fee.
A popular and common technique used by free app publishers is to offer a free trial period, and then charge a subscription fee for those who wish to continue accessing the app content.
Selling Merchandise
Many e-commerce businesses build free editions to sell physical items such as toys, shirts, and shoes. These physical products can be sold directly to the app or via email marketing.
To encourage app publishers to use this strategy, Amazon has launched a service called Merch by Amazon, which allows publishers to create their own artwork, upload it to their platform and promote their products. This is a win-win strategy for owners and app users.
To make things easier, Amazon also takes care of payments and the delivery of goods.
In-App Purchases
In-app purchases are made directly from free mobile apps and are usually a very simple process. In-app purchases provide the ability to sell a wide variety of virtual goods directly from the app. The best free game apps like Clash of Clans, Angry Birds have enhanced their user experience by offering customers in-app purchases.
Hence apps make money without advertising, in-app purchases, and selling goods.
Sponsorship
Sponsorship is one of the less commonly used money making methods, but it is still an interesting strategy.
Simply put, sponsorship is a powerful app monetization strategy in your mobile apps if the app publisher builds the right niche app for the target audience and launches it on behalf of another company.
As with websites, app publishers should treat sponsors like their target audience when the app is addressed. Before creating an application, it is a good starting point to create a list of companies and brands that can benefit from the partnership.
Referral Marketing
Referral marketing is the promotion of a third-party product or service as a way to optimize revenue opportunities.
There are various types of referral marketing models used by publishers in their development.
a) Cost per acquisition or cost per action (CPA)
b) Cost per click (CPC)
c) Cost per view (CPV)
d) Cost per install (CPI)
Collecting and Selling Data
Apps collect a lot of user data in terms of user behavior or another application usage. The app for free publishers can sell their user's behavior data to these researchers and make a lot more money. Data usually includes users’ email addresses, social media accounts, and personal preferences.
Physical Purchases
There are many eCommerce businesses and startups that have started using free apps to sell physical products or physical items such as mobile cases, t-shirts, toys.
Transaction Fees
The best way to monetize your applications is to transact fees. This is the best way to make money from your apps in the app store. This is especially possible with applications that provide the platform, where digital transactions take place on a daily basis.
You can charge a very low fee and earn a lot of money for every transaction that takes place in your app. This way, you can make money without investing too much money in your mobile apps.
Crowdfunding
In this way, startups and companies share their ideas on platforms such as Kickstarter, Patrician, Crowd Supply, Fundable, Indigogo, and Chaffed. According to Mobile Growth Stock reports, non-gaming mobile apps are preferred in crowdfunding.
3 tips for choosing the best app monetization techniques
Place the application type in the center
Competitor analysis
Get to know your target audience
Conclusion
It is important to note that with most application monetization models to make money with apps, each method has its own advantages and disadvantages when it comes to making money with the app.
However, trying these strategies and analyzing what competitors are doing is a good starting point. Now, you may have got the answer to your questions like how much can you make from an app, making money with a new app idea and how to make money from a free app, or finding different ways to make money from free apps.
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The world is on our fingertips these days.
Well, that's the common mentality and strategy to go ahead with.
They can be easily understood using the survey results.
2) Smartphone or Tablets or both?
Meaning your app should run only on the smartphones or you are planning the game or book app which should run only on the tablets or you want both smartphone and tablet compatibility?
4) Always use Beta Testing We recommend you to always opt in for the Beta Testing, the reason being if there are any issues they would be spotted by a limited set of users which can save you from the long-lasting embarrassments.
This is mainly because of the saturated market that has become competitive.
For those businesses that are looking to gain a better competitive edge, a better app launch strategy is essential for the success of the app.
Here we have come with the six steps that would help in the launch process.
A thorough understanding of the products is essential while approaching the other steps, hence saving your time and money.
So, always focus on why it differs from the other products.
To show success or failure, first of all, come up with some goals and measure them.
