How to Generate More Money From Your App
It just keeps getting harder for people to put down their phones. And, mobile app creators are cashing in.
Over the last two years, mobile internet usage has surpassed computers for the first time. Even more encouraging for developers, mobile apps have benefited the most. In a recent study, Compuware technology analysts found that 85 percent of users prefer mobile apps over mobile websites.
Because of this high demand, mobile app making is more lucrative than ever. However, creators can’t just rush into this without first having a solid revenue-generating plan.
Maximise your earning potential by considering these four tips before launching your new app.
It all starts with design.
Your app may only have a limited window to make a first impression.
This same study found that between 80 to 90 percent of all downloaded apps are only used once before being deleted. Money-making apps have to grow a large, active customer base to improve income opportunities. This simply cannot happen if your app isn’t well designed and functional.
Regular usage is directly linked to higher earnings. It just doesn’t matter what in-app purchases or advertising options you offer if you can’t attract and maintain steady numbers of users.
Because design and functionality are so critical to your app’s success, you have to make sure you get it right the first time. There are online resources, like the app maker from Yappi, that help clients build beautiful, useful apps. These tools remove the risk of an app failing due to poor design and grant you greater potential returns from the very beginning.
Free is the way to be.
There are several different pricing models to consider, but free apps bring in the most money by relying on in-app purchases.
While it may seem like it makes sense to charge for an app upfront, this is only a one-time cost. There is no repeat revenue once an app is downloaded. To continuously bring in money, you need to constantly find new customers. This is difficult to expect when many customers don’t want to pay for an app without sampling it first.
Free apps often have paid components to unlock additional features. These “freemium” apps usually provide free versions with reduced features along with a premium version at a fixed cost. Freemium can create income through trial offers, auto-renewal service fees and in-app purchases.
Add ads to increase income.
By 2019, eMarketer predicts 72 percent of all digital ad spending will go toward mobile apps.
With such growth, including in-app advertising can deliver additional earnings. This model primarily works best with apps that have large numbers of frequent customers who use the app for prolonged periods of time.
If you are willing to create your own ads, try partnering with local companies looking to advertise in your ad. This allows you to get paid immediately. There are also services for integrating automated ads. While these limit the legwork needed to sell and create ads, your income will be based on click-throughs and web traffic.
Understand your users and know your market.
Making money from your app requires research.
The highest grossing apps analyse the market and find their niche. This takes place before an app is even launched.
Examine other apps, including competitors, to recognise money-making strategies they use. Focus on how their app content is structured and how advertising is incorporated. More importantly, identify your competitor’s approach to find weak areas that you can exploit. Whether it is to make a better app or maximum profit, knowing how your app can improve on the user experience is essential.
As discussed previously, revenue is tied to repeat customers. Your app has to have the interests and needs of your demographic audience in mind.