Have you ever wondered how the popular free apps like Clash of Clans, Candy Crush, Instagram, etc., are earning billions from the users. In spite of being the free, these apps have topped the list of highest revenue generating apps. Even studies have proved that free apps are more intelligent to make money than paid apps.
Price acts as a barrier to get a good number of downloads instantly on a launch day, no matter if the particular app is already a buzz. Upfront price never allows an app to reach the millions of smartphones immediately, even after applying mobile app marketing tactics. Users’ demands increasingly prefer for free apps, forcing app makers to trigger off the tricks to making money from free apps. Not to worry as we are all set with the most common, most preferable and most popular ways to generate money from a “free” app.
1. In-App Purchases
Charge real money from users
2. Mobile Advertising
While playing with free apps, you might have noticed that your screen is surrounded by banner ads, influencing you to click and see what the ad is about. Those ads are called in-app advertising or mobile advertising. Even if the users don’t spend on in-app purchases, at least you can convince them to watch out the ad or click it which is the biggest benefit of mobile advertising. App makers are using mobile advertising in conjunction with in-app purchases to assure the revenue from apps.
3. Distribute Products and Services
Uber is the best example to understand how to make a free app and how to charge from customers via services, delivered within the app. Uber is a free app, offering paid driving services. If you are running the business of products and services, then mobile app is a best way to distribute your business among the maximum number of users.
4. Sponsorship
Suppose you had launched an app a few months ago. Now, your app is rich with 1 lakh downloads and increasing more. I will pay you money to name the app with my brand. It is called sponsorship. It takes time, but later generate good results.
5. User Acquisition Model
No in-app purchases, no ads, no subscription fees, no product, no services, user acquisition is something like Whatsapp. Whatsapp doesn’t follow any revenue model, but it has the most precious assets: lots of users. It grabs the users, make them addictive and later, charge a cheap price yearly. In short, it follows monetize later strategy.
The best part is that app makers can use multiple monetization strategies with a single app, but don’t ignore users as their comfort with the app is a key to unlock the flow of revenue. Monetization strategies must be followed by keeping focus on users first and revenue second.
Related: 2015 Predictions: Big Changes Hit the Town of App Development Experts
Price acts as a barrier to get a good number of downloads instantly on a launch day, no matter if the particular app is already a buzz. Upfront price never allows an app to reach the millions of smartphones immediately, even after applying mobile app marketing tactics. Users’ demands increasingly prefer for free apps, forcing app makers to trigger off the tricks to making money from free apps. Not to worry as we are all set with the most common, most preferable and most popular ways to generate money from a “free” app.
1. In-App Purchases
Charge real money from users
- To unlock extra features E.g. Subway Surfer
- To unlock the “Pro” version of app E.g. Evernote
- To add new levels to the game E.g. Monument Valley
- To get extra lives or points during the continued game E.g. Candy Crush Saga
- To disable the ads E.g. Spotify
- To purchase the virtual goods E.g. Clash of Clans
- To get an additional content E.g. Adventure Town
- Subscriptions E.g. NYTimes
2. Mobile Advertising
While playing with free apps, you might have noticed that your screen is surrounded by banner ads, influencing you to click and see what the ad is about. Those ads are called in-app advertising or mobile advertising. Even if the users don’t spend on in-app purchases, at least you can convince them to watch out the ad or click it which is the biggest benefit of mobile advertising. App makers are using mobile advertising in conjunction with in-app purchases to assure the revenue from apps.
3. Distribute Products and Services
Uber is the best example to understand how to make a free app and how to charge from customers via services, delivered within the app. Uber is a free app, offering paid driving services. If you are running the business of products and services, then mobile app is a best way to distribute your business among the maximum number of users.
4. Sponsorship
Suppose you had launched an app a few months ago. Now, your app is rich with 1 lakh downloads and increasing more. I will pay you money to name the app with my brand. It is called sponsorship. It takes time, but later generate good results.
5. User Acquisition Model
No in-app purchases, no ads, no subscription fees, no product, no services, user acquisition is something like Whatsapp. Whatsapp doesn’t follow any revenue model, but it has the most precious assets: lots of users. It grabs the users, make them addictive and later, charge a cheap price yearly. In short, it follows monetize later strategy.
The best part is that app makers can use multiple monetization strategies with a single app, but don’t ignore users as their comfort with the app is a key to unlock the flow of revenue. Monetization strategies must be followed by keeping focus on users first and revenue second.
Related: 2015 Predictions: Big Changes Hit the Town of App Development Experts