There’s nothing like the excitement of releasing an app, signalling the moment you can finally stop spending money and begin making a profit. But before this can happen, you’ll need to decide on how you’re going to monetise your app. While some choose to charge an initial purchase fee, more people are opting to release free apps that rely on other methods to draw in revenue, with great success. In fact, many of the apps currently grossing the highest amounts of profit are released for free! Find out how you too can obtain success and make money from a free app with this quick guide.
Advertisements
Placing advertisements in your app is a common, yet effective, way of making money, while still allowing you to provide your app to customers for free. Every time an ad is shown, you will be paid by advertisers. While careful consideration must be given to the placement and frequency of ads to ensure they don’t interfere with the user experience, in-app ads are generally a minor inconvenience that users accept in exchange for free-of-charge use of an app.
In-App Purchases
The in-app purchase model has recently emerged as a fantastic money-making opportunity for free apps in a range of categories. It works by giving users the option to make purchases within the app, with these purchases opening up extra areas, providing additional content, and in some instances removing ads.
These in-app purchases are much more effective than charging for the app outright, as they allow users to try before they buy. If the app appeals to them, they may then choose to invest money into it, when they otherwise may not have downloaded a paid version of the app.
Selling a Product or Service
If your company has an online store or is a provider of an essential service, a free app offers an easy way to drum up further business and receive maximum exposure. Not only will customers be given easier access to your services, but the more your app is downloaded, the likelier it will potentially be exposed to a higher number of new users, who may also purchase products or services. This can cause a snowball effect, where higher app downloads lead to steep increases in both users and sales.
User Acquisition
The number one aim of almost all apps, whether paid or free, is to be downloaded by as many users as possible. Getting users to acquire your app can be a difficult endeavour, but once achieved, it can pay off! Releasing your app for free will ensure more downloads, increasing its chances of becoming a runaway success. When many users are downloading and using your app, you can then choose to start monetising it using ads or in-app purchases. Another option is selling your app to a larger company who may pay big dollars to acquire a popular, established app with a dedicated user base.
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At Appz, we don’t just build apps; we help develop business ideas into realities. Talk to us today about earning money from your idea.