Successful apps have the potential to generate substantial sums of money for developers. But how exactly does this work? Do app creators generate income solely from direct purchases? How do free apps sustain themselves? This guide is perfect for beginners interested in building mobile apps as their additional or main source of income. We include the most profitable ways to transform an application into a successful venture.
Pick a model
Developers may need help determining the payment model their applications will follow. One of the most straightforward approaches is to release a paid app, meaning users must pay to download it. Nonetheless, such direct purchases are only one option.
For example, freemium models have also become popular. This means that a basic version of the app (or a limited version) is available completely for free. However, users need to pay to unlock more sophisticated features or lift limits.
Why is this approach so popular? It allows app creators to attract more users and convince them that upgrading is worthwhile.
Advertising strategies
Most users are already familiar with in-app ads. They might appear anytime you launch an app. In other cases, watching ads unlocks certain features or boosts. As an app owner, you generate money by displaying such ads within your application. So, consider joining different ad networks to make money from ad integration. In fact, using multiple ones guarantees higher earnings.
SDKs (Software Development Kits)
SDKs (Software Development Kits) are code or libraries developers can use to optimize and streamline product creation. However, they can also help when monetizing your app. For instance, ad integration also involves SDKs. You can also find more unique SDKs to monetize your app. Explore different options to find the most suitable for your application.
Round up of different monetization ideas
Your app likely has the potential to integrate many monetization strategies. Here are some winning methods to explore:
- Consumable purchases, meaning the user buys, say, in-app currency and spends it on boosts or additional lives (for games).
- Permanent purchases, like unlocking features or enjoying the application ad-free.
- Free trials are an excellent way to attract new users who are more likely to convert after the period.
- Adding affiliate links to your app could be profitable but might not always be user-friendly.
- Selling anonymized user data (ensure you follow relevant policies and receive user consent).
- Accept in-app donations from users who wish to see you working on the project.
- While-labeling your application helps you earn additional income. It means selling certain portions of your app to other developers or companies.
Additionally, perform some market research to find which monetization strategies work best with your targeted audience. This will save you time and let you pick the most profitable and user-friendly methods.
Conclusion
Developing and releasing a mobile application is impressive. Yet, earning from your creation takes some time and effort. The best approach is to understand your audience and test different strategies. For example, ads are familiar to most users. Still, a focus on pay-to-win can lead to more negative experiences.
