There are about 2.8 million applications available on the Play Store. Out of these millions of applications approx 90% of applications are free for users to use. However, free applications don’t mean that they do not drive any revenue. In reality, these applications generate more than $71 billion in revenue each year. The initial cost of app development is the only cost investors have to bear. And after then, if these applications perform well among users they make money through other ways too. and In this blog you will know how to make money from free apps,tips and strategies. However, to generate revenue through other approaches, the app should offer customized UI & UX and high-quality features. In many cases, free applications altogether are more popular than paid ones.
But, investors often wonder how these free apps make money. Well, today we are going to answer your question through A guide to make money from free apps: Tips and strategies. You will also learn why it is a good idea to invest in mobile app development. By investing in iOS app development as well as Android app development you can open up so many opportunities to generate revenue. Welcome to the Tech Pathway blog, today we are going to share with you A guide to make money from free apps: tips and strategies.
Also read:- How to develop a mobile application with APIs
The current market trend of free apps
Before you jump the guns and hire a mobile application development company, let’s first dive into the market statistics of free and paid applications
- The number of free applications available on the Play Store is constantly increasing daily whereas the paid apps have come down to 40% from 70%.
- In the year 2011, there were about 20 billion downloads of free applications on the Play Store. Later it increased to over 260 billion downloads in the year 2017.
- According to a report by Statista, more than 90% of the all available android apps on the Play store are free.
How to monetize your free app
Now that you are familiar with the popularity of free apps, let’s check how to make money through free apps without expecting your users.
The use of advertisements
Using advertisements to promote other people’s products and services on your application is one of the great ways to generate revenue. Users only need to watch a display ad or a short video once in a while. However, these ads are not disruptive so users do not have to put up with any kind of inconveniences.
Types of advertisements on apps in the market
- Banner ads: These types of advertisements take so much less space on the screen. Generally, they are shown at the top or else bottom of the screen. However, the engagement rates of these ads are lower in incompatibility with others.
- Video ads: These ads are short videos that can be played during the pause. Games often use these ads and give free points and rewards to gamers to watch them.
- Native ads: Native ads are used to promote the brands where these ads are naturally incorporated into the application.
- Interstitial ads: These ads are full-screen ads that pop up when the applications are opening or closing.
How can free applications make money without using advertisements?
Startups often find it difficult and challenging to generate revenue from free apps. It is even more challenging when they do not even use any type of advertisement. The money making android apps are so popular among investors. So if you are not interested in showing ads on your app and want to use other ways. Well then let’s dive right into the ways free apps make money without ads.
- In-app purchase: Many on-demand solution applications use this technique to generate revenue. Users are allowed to make an in-app purchase to use the premium functions of the app. For example, Games have been using this approach to make revenue. They allow gamers to purchase skins, costumes, weapons, etc.
- Affiliated marketing: Affiliated marketing allows money to make apps by sharing other people’s products. All you need to do is promote their products’ link on your on-demand app then whenever someone makes a purchase using that link. You will receive a small percentage. The most famous example of this is amazon affiliated marketing.
- Crowdfunding: Crowdfunding is another approach free apps can generate money. Whenever an application needs to gather investment to update the app and integrate new features. They often ask their users to donate some money. People have been donating money to their favorite apps and games for decades.
- Sponsorship: Using a Sponsorship approach to make revenue is one of the oldest tricks in the book. You have an app that thousands or possibly hundreds of people use. Well, you can ask brands if they are interested in promoting their product or services through your platform.
- Sell database: Whenever someone uses your mobile app, they need to make a registration. Well, you can sell those numbers and emails that your users used to register on your account. Many companies are having interest to buying user data to promote their services and products.
Mobile marketing automation
In this era of the Internet, mobile applications have many ways they can make money using multi-channels. Even you can ask someone to pay you to use your platform and access your user base. Let’s take some examples:
- Hotels will be eager to pay you whenever you make a booking on their behalf.
- The same will happen with restaurants. Famous on-demand food delivery apps allow users to order food and deliver it to them using just a mobile app. And they receive a small percentage of commission from every order made.
- Whenever you will encourage your users to purchase some services or products.
- You can also alert your users to buy any newly available content like Album from the music app.
In other words, you will need to convince your user to spend money inside the app. In addition to this, you can also use automation of mobile marketing tools. After integrating these tools such as in-app messages, push notification to another app inbox to create an integrated campaign with your app. You will be able to make serious money.
Most used app monetization models
Let’s check what are some of the most common app monetization models are:
- Paid model: Paid models are the ones that are used by paid apps. Here users only need to pay one time for the application’s use. And once he or she has paid for the app they can use it and it’s all of the features as long as they want.
- Premium: In this model, users will need to pay extra each time they want to use a premium feature. For example, users might be interested in paying to use the app without watching the ads.
- Subscription: These apps are like a cable TV subscription. Users are needed to pay for a week, month, or yearly subscription to use the app. These subscriptions can also be different giving different features.
- Freemium: This model is a mixture of both free and premium applications. Users can use the free version of the app as well as pay to use the version with extra features. For example Tinder allows users unlimited swipes after taking a subscription.
- Free model: Free models are only successful when you have millions of users using your app day and night. A famous example of this is, Facebook and Instagram. Companies, brands, organizations, and other people are using Instagram for self-promoting, as well as promote their products or services. This is done using showing customized ads to users.
You can also combine multiple monetized strategies to earn more. However, you will need to keep in mind that you cannot irritate your customer so much that they stop using your app altogether. One strategy that you can use is providing them with rewards after they watch the ad. This way they will be watching the ad as their own wish as well as spending more and more time on the app.
App monetization from platforms
There was a time when only Google ads were use to monetize the applications. However, this is no longer the case since many different companies are offering the same service. These services customize the ad according to your app and only show ads that are coming from the highest bidder.
- Audience network by Facebook: ONe of the best possible approaches to monetizing your application is to get the Audience network offered by Facebook. They enable your platform for Native ads, rewards ads, display ads, as well as in-stream ads.
- Unity Ads: Unity ads offer one of the best video ads the industry has to offer. They are like rewards ads that offer maximum possible revenue.
- Media.net: Media.net is one of the best alternatives to google ads this is because publishers can put various types of ads on the on-demand solution app. Media.net offers access to display ads, contextual ads, as well as native ads through their network.
How to start monetizing your app
If you are thinking that you have a great application idea that will hook thousands or possibly millions of users to your app. Well, then you should definitely go with the mobile app development. However, you are going to need to use many different marketing strategists before you launch your app on the Play Store. You will need to keep in mind how your app is going to affect the marketplace. And according to that, you will be able to plan your robust marketing strategies. If you decided to go without using any impenetrable strategy for your app promotion then it won’t hit the market hard enough to make a difference much less disrupt.
Key things to keep in mind before you invest in mobile app development
- There are already many free and paid applications available on the Play Store. So if you are going to make a difference try to make as much as a profit you can.
- Before you make any profit from your application. The first thing you will need to do is develop a fun as well as engageable application.
- You will also need to make sure that your targeted audience is going to love it as well as use it.
- The more users will get hook with your application the more your audience will increase.
- No one likes bugs and crashes when they are trying to play a game or perform another task on your app. You will need to hire android developers as well as iOS developers so that they can create and update your app.
- Try to keep adding more features every 6 months to keep your users interested. As long as your users will find your app fun and enjoyable they will keep coming back.
- Make sure each and every user will use your service as well as enjoy it without any type of issues.
In the end, you will need to keep in your mind to invest in an app development that will attract and compel users. The more users your app will have the more chances there will be for you to beat your competition. On the other hand, monetization is not so complicate at all. This means you will surely be able to make an enormous profit once you have enough users using your app. If you are looking to hire mobile app developers then Tech Pathway would be the right choice for you.
Hire an app development company
App development is not an easy task and startups often already have to face many hurdles at the start of the business that taking care of the development seems like a scratch. The wiser thing to do is to hire a software development company that can help you with the development. If you are searching the Internet for mobile app developers for hire then here at Tech Pathway, we are offering outsourcing development services, hire android developers, or hire iOS developers as per your requirements. In addition to that, if you are someone who also wants to invest in website development well then you can also hire PHP developers from us.
Being a mobile app development company we have already served more than 1000 clients across the globe with a satisfaction rating of over 4.6 out of 5. In addition to this, our development cost is way reasonable when compare to our services and others in the industry. So contact us today to hire dedicated developers and to create money making ios apps.
Kinshuk Sharna is the Founder & CEO of Techpathway, a global consultancy firm that helps in business and technical consulting services and delivers the promise of technology and human ingenuity. We are the top leading consulting firm in the USA that is available in four countries. Our company is an expert in design, development, and training services. Our technology consulting services include PHP development, iPhone app development, Android app development, Laravel development, Cross-platform app development, React Native app development, and other Software development services. The Tech pathway can help create the right technology strategy with our innovation-led approach to application services. Our company is listed among the best software development company in the USA