Earning profits is the priority objective for any business, no matter what service they provide. It has been exhibited that the worldwide transformations and developments have led to more excellent opportunities for companies to earn profits and make their services more visible. Evolution over time is an unavoidable process, no matter what direction you move in.
The technological transformations that we just talked about have led to significant creations and innovations, amongst which the online mobile apps lead the way. They have assisted the human resource in putting together various tasks with lesser efforts and more straightforward processing with the assistance of the top mobile app development company in USA. It has further examined records of better functioning and productivity when compared to the traditional methods.
We, however, think about how these apps on the internet make money despite being available for free to the users. Yes, do not be surprised; they do make money! The recent 2020 studies show the earnings of these apps to be about $111 billion within the year. Approximately 90.3% of apps on the Apple Store and 96% in Google play store are free even in the same.
How do the free mobile apps gain profits or earn revenues?
It has a lot to do with the technological advancements and inventions that have boosted the need to employ various strategies and online marketing services along with the actual sale of products. Moving forward, we will better understand what the free apps are meant for and how they gain revenues or profits.
1. The freemium strategy
The latest trend of providing free versions of mobile apps for a few initial days has led to drastic developments and profits for various businesses. The freemium model of mobile apps allows you to access effective features and quality services for a few days and then decide upon paying for the premium version.
The free access has a limit, after which you need to pay for a premium version of the application with unlimited options and features. Once the user becomes acquainted with the mobile app allowing access to all features, it is quite imperative for him to pay for longer access.
This technique or strategy allows various businesses to persuade or attract users and customers with the free versions as bait in the initial days. One of the highly commendable and prominent examples of the same is Netflix.
2. The in-app purchases
In-app purchase is yet another method to grow financially with the free applications. You can instill a few features or offer and deals through your application that requires monetary purchase with the help of mobile app development services. You need to ensure that the service is worth paying for and attractive to persuade the buyers.
For example, in a gaming app, the players are willing to buy rewards, coin points, and several other things by paying for the same due to the need and requirement. The urgency and competency of the service make the buyer believe in its importance and pay immediately. This helps you with the monetization of your free available apps. However, you must plan and strategize services to offer with proper insights and statistics of the targeted audience.
3. Paid subscriptions
Subscriptions have become an indispensable part of the technological sector. It allows the users to subscribe to a specific service for a limited time by paying for the same. It gives you several features that are not available with the free application creating an urge and persuasion aspect.
Once the user starts using the subscription pack and gets used to the available features, it is quite difficult for them to use the freely available application with lesser features. It automatically creates greater opportunities for you to gain revenues and profits through the free application that you built with the top mobile app development company In India.
To give easier access and a better customer experience, you must also include an option to end the subscription plan according to the user’s convenience and requirement.
4. The referral marketing approach
We all know about in-app advertisements and promotions. Something of a similar sort is what we call referral marketing in the present times. It is incredibly productive and worthwhile to persuade your users and gain revenues from the free applications. You can collaborate with the affiliate company and provide information and data. You will ultimately win rewards and revenues whenever a user clicks on the advertisements or installs their data files through your app link.
The model is set for the revenues to depend upon the cost-per-action model or cost per click model depending upon what the two parties have agreed upon. It creates a great opportunity for you and your business to gain profits with merely a few advertisements and sort of referral marketing ideas. However, choosing the right ones is an important factor in determining your application and service’s authenticity.
5. Selling the app API
If you or a business owner with a well-established mobile application and demanded services, you could profit by selling its API. It is usually acknowledged by big companies like Google maps and Appcelerator. You could sell these app APIs as products in the larger markets and gain monetary assets in exchange for the same.
6. Email marketing
Email marketing is one of the former yet extremely effective methods to monetize your free mobile app. The model is similar to that of pay-per-clicks but has a few alterations. The mobile apps designed by the top android app development company could have various portals for login and registrations that allow the owner to collect tons of data. It can then be used to pace the email marketing process and make the best use of available data.
There are many methods to grow your business or earn from the free mobile apps you have invested in. However, all you require is the zeal and determination to accomplish your ideas. The top mobile app development agency, expertise, vision, and strategies combined add to the efforts and get the best possible results in terms of profits. But, these were a few already implied methods to help you begin with the revenue generation and lend some time to develop your unique strategies.
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