Create an App and Make Money

17 July, 2020

Create an App and Make Money

One of the key factors that triggers a business owner to develop an app is making money because businesses are run on the revenue generated by its progress and not by pumping extra funds. This rotation of funds within a particular business keeps it stable and in profit. Creating an app can be considered as one of the most effective marketing tools that along with being a great way for improving the company also helps to make money. As the estimated time spent by people on searching various apps in Google store and App store has increased to 60 % and download rate by 40 % it gives immense opportunities for those looking to make money from apps. Mentioned below are certain ideas that help monetize an app. 

Create an App with Advertisements

It has been quite some time now since advertising has gone digital. However, for the past few years experts say that 70 percent of the revenue generated from digital advertising is generated from the ads that appear on mobile apps. Ads are used by apps that can be downloaded free of cost from google play store or app store. These ads may vary from flash messages to ads for browsers and even other apps. Advertising on apps that provide free content is a brilliant way to generate revenue without the users spending money. It can also be used by apps that provide in-app paid purchases to make money. 

Create Paid Apps

Creating an app that requires a customer to pay some money right when he/she wishes to download it is a good way to earn money if the contents of the app are valuable enough. These apps start generating revenue right from the moment the customer downloads it. However, there are few limitations as well. Users who are that keen to use an app which is paid might only download it. Therefore, these apps usually have low customer base as people are not getting a chance to experience the service provided by these apps and then get a chance to decide whether they require it or not. Paid apps can be developed as an extension to already existing free ones that have a huge customer base. It also requires the businesses to spend a considerable amount on promoting paid apps.

Create Subscription Based Apps

Subscriptions are mainly used by service or media apps that provide access to contents worth paying for, in order to generate high revenue. The most common examples are Netflix and Dropbox. Developers usually charge a monthly or yearly recurring fee to use the app. One of the interesting factors of subscriptions is that, unlike paid apps, they can be downloaded for free and users who are interested in the content may only spend the money, which is generally a modest amount. This in turn helps the developers to enlarge their customer base. Free download gives the users a chance to experience the service provided by the app and get access to the contents, that may persuade them to pay for gaining access to next levels. This also makes them feel that they are not being forced to spend money. Subscriptions can be of various types in accordance to the apps. They can either be in terms of points or tokens that help the user to unlock next levels and can be used only once or like unlocking a feature that stays as a new addition to the app. Auto renewal and non-renewal subscriptions are the other types of subscriptions that developers provide in various apps depending upon their usability.

Create In App Purchases

Unlike paid apps or subscriptions which have a one-time fee or recurring fee, in-app purchases have no limit in terms of money that can be spent by a user to purchase ‘consumable’ or ‘non-consumable’ purchases. While consumable items are tokens or points can be used only once to get a few extra points or get access to the next level, non-consumable purchases are like unlocking a feature that stays forever in the app. Other in-app purchases can be auto renewing (automatically renew after a stipulated period) or non-renewing (does not renew and thus the access to contents is only for stipulated time) subscriptions. The revenue generated through in-app purchases is different depending upon the purpose of the app. It is estimated that gaming apps like PUBG are the ones that are highly benefited by these in-app purchases because customers often tend to buy things that make their gaming experience better. However, gaming apps are not the only ones that come under this category.

Creating an app might seem like an easy task. However, it requires proper planning and ability to understand the worth of the app to make money from it.

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