Do you have the next billion dollar idea? [Part 2/2]
Steps involved in creating a Mobile App – Part 2
Please read the first part of this article from this link.
Mobile App Monetisation
Once the high-fidelity prototype is ready, the next step is to find a way to monetise the app. There are several ways to earn money from your app. The choice of App Monetisation is one of the most significant factors in determining the success of the app.
Below are the six different ways to monetise the app.
1) Paid Downloads
Paid Apps are the simplest and direct way of app monetisation. The average cost of an app in the iOS store is $4.37, while most of the apps cost less a dollar.
Your app can have this model if the service offered by the app has a niche market, and that market has the purchasing power.
2) In-App Purchases
The in-app purchases monetisation model can be used for both free and paid apps. You can use this method for physical and digital products.
Gaming apps use this approach for virtual coins or experience upgrades. For example, users playing a mobile gaming app could spend money to unlock a new level/features.
Subscriptions are a great way to generate recurring revenue with an app. The Apple and Google app store both make it easy for you to set up a subscription business model with your app.
4) Freemium Model
The idea of a Freemium model is to offer a free version with essential features and an upgraded version that delivers a better user experience. The best example is Spotify application where the user has to pay for having an enhanced user experience.
Ad revenue is an extremely popular app monetisation tactic. In this method, you’re selling space within your app for ads.
While in-app ads are popular and profitable, they’re not for everyone. Sometimes ads can hamper the user experience, and ultimately make your app less desirable. So it would be best if you considered this before adding ads to your app.
6) Product Extensions
A product extension falls into the indirect monetisation category.
Having an app as a product extension also helps differentiate you from the competition.
If your product comes with an app and others don’t, then it gives you a significant edge. Your business will automatically be more appealing to consumers who are shopping around for a product in your category.
App monetisation can be a challenge for app developers and business owners. If you still have more questions about App monetisation, BAM by design’s expert team in Brisbane can help you figure out the best monetisation for your app.
The next step is to start the development of the app. In the following article, the entire development process of the BAM by Design will be discussed.