While it is likely that as a business person you have examined many ways and means of generating revenue, you may have overlooked the opportunity of using a mobile app because of their relative newness, and their dependence on IT. However, they can make a great addition to the revenue streams you already have going, so to find out how to utilize them read on.
Priced apps
This is the basic format for successfully creating revenue through mobile apps. You design an app that solves a problem that a user has. Such as providing access to music, video, messaging, or organization among other things. Then the people pay for access to this.
This can be via a one off fee, but to make real money from this you have to have a true mobile hit on your hands like Angry Birds, or Candy Crush. A much more profitable structure is to make the app itself free, but charge a subscription fee for the content like Spotify does. Then you are guaranteed a regular income without having re-sell to new customers each month to meet targets.
However, this model does depend on having content, or a function in the app that people are willing to part with their money for. Good examples of this include games, entertainment, and photos and video apps. Meaning this model won’t necessarily suit all type of business looking to get into the mobile app market.
In app purchases
Another way to monetize mobile apps is to charge in app purchases. These are the things that you are always getting warned to turn off when you buy your kids games on their smartphone.
Why? Well, it’s usually because they are cleverly conceived to create both a desire and opportunity for the person using the app to invest in some additional content.
In games, this can be coins or bonuses that make progress easier. In other types of apps, it may be a fee for special features, or access to premium areas. This is arguably a better model than the one off priced app above because if the hook is good enough customer will keep coming back. Spending more money to get the stuff they need, thus increasing your revenue stream from mobile app technology.
Advertising
Another way that you can harness the power of mobile app technology to increase revenue is to use your platform as a host for mobile advertising. This can be done simply and easily by using one of the mobile advertising companies that offer the ad space you have, for their clients to fill.
The benefit of this is that you can keep your app free, thus ensuring a positive connection with your users. While also generating a stable revenue stream.
In a way it sort of works like the old idea of web pop-ups and banners, but modernized for 21-century mobile technology. However by using mobile platforms the reach of the adverts is much greater, meaning there will be greater demand for the space that you are selling. Something you can exploit and convert into revenue for your business.
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