4-Strategies to Make Money Through Free Applications
We all love free things, don’t we? Be it coupons or discounts or gift hampers, free stuff always excites people. Giving away things for free is also something a lot of apps do these days.
If you look closely, you will notice that free apps have outnumbered the paid apps. But being cost-free is not the only factor that will make these apps popular among the users. Apart from being cost-free, these apps also offer high-quality features, beautiful user interface and fulfills the demands of the users.
How Does a Free app actually make money?
Often a lot of mobile app development companies come up with such questions as they are eager to launch a new mobile app that is free but they also want it to attract some money. The scope of earning money through a free app is pretty huge. You need proper strategy. There are several app monetization methods that can add value to your business. In this article, we will talk about how to monetize your free app.
1. In-App Purchases -
Any purchase of an extra service or feature within an app is called an in-app purchase. There are several apps that offer advanced features on a subscription basis or a one-time purchase. There are various in-app purchases like subscriptions (example: Netflix), consumable (example: Game currency), non-consumable (example: removal of ads). The ability to sell a wide variety of virtual items directly from an app is called an in-app purchase. You need to offer good user experience and also test the ad performance.
2. Subscriptions -
The most popular practice that is being used by many mobile app development companies and app publishers is offering a subscription model. In a subscription, you can offer free features and content for a specific time period. You can charge users for the subscription for them to continue receiving the benefits of these services. A lot of free app publishers offer a trial period service. It ranges from 7-days to 30 days trial periods after the end of which you need to pay for the services. A lot of audio and video streaming apps use this subscription model. Apps like Netflix and Amazon offer this model and they have been successful in increasing the number of paid users for their apps.
3. Ads -
Having ads in your app is probably the easiest and the quickest way to generate revenue via free apps is advertising. Last year, over a $100 billion were spent only on global mobile advertising. Google managed to generate more than 30% of the revenue from the US. For in-app advertising, it is important to determine the revenue model that you are going to opt for. There is Display Ads and there is Ad Clicks. In case of an ad click model, you need a free user-friendly app which keeps the user engaged. In case of display ads, your ads should not be intrusive. But they need to be bold enough to grabs a user’s attention. This is probably the most effective method of generating revenue. You get paid every time a user installs the advertised app, on the basis of the impression, and per click on the ad.
4. Referral Marketing -
Generating revenue by the way of promoting third-party products or services in your mobile application is called referral marketing. You can generate revenue depending on the revenue model you opt for. You can generate revenue depending on the number of clicks on a displayed ad. Then there is Cost per Action. This online advertising pricing model requires the advertiser to pay for a particular acquisition. There is also Cost per Installation, where you get paid for every installation of ad. Then there is Cost per View where you get paid for every time a user views the ad.
Need Free Apps for Your Business?
There are so many app monetization methods. The scope of earning money through a free app is huge if you are able to determine the kind of apps that work for you and if you choose the right revenue model. Understand and consider the app structure and target audience properly to be able to determine the revenue model. There are several mobile app development companies that can help you with this. You can contact us at Nimblechapps anytime for any help regarding app development, we will make perfect app for your business.
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