3 ways to generate money from your mobile apps

Picture1.pngThe trend for revenue generated from mobile apps is constantly growing and is projected to reach $188 billions for the year 2020 (according to statista).

Today, I want to discuss the three most common options to generate money from apps and which you can already make use of if you have some traffic. I won’t include business specific solutions or selling of physical products outside of apps. So what are these three options?

 

1. Paid Apps

This requires the developer to publish a Paid app into the App Store or Playstore. It is most commonly used for apps by high profile company or apps which the customer already know what to expect from.

 

2. In-app Purchases

There are 3 types of in-app purchases:

Subscription – The user will either need to pay a monthly/yearly subscription feeAt the end of subscription period the user will have the option renew paid service. Note that, you can also allow the user to have trial periods (e.g a week) before a required subscription to continue to use the app.

Consumable – These are features within the app which the user is required to pay every time he wants them. The purchased item will get “consumed” at some point in time inside the app. Then the user will decide if he wants to pay again to get back the consumable item. An example of this would be buying extra-health in a game.

Non-consumable – These includes purchases which the user is expected to make only once in your app. After the purchase, the non-consumable item can be use at any point in time and on any other devices with the same Apple ID/Google Account. Some examples includes: “Upgrade an app to pro edition”, “Remove ads”, “full game unlock”.

 

3. Ads

Now the third option is to display ads inside of you app. There are 3 format of ads commonly used for mobile apps:

Banner ads – are rectangular images or texts that occupy a specific spot inside your app screens. They normally stay on screen while users are interacting with your app.

Interstitial ads – are full-screen ads that cover the interface of your app. They’re displayed at natural transition points in the flow of an app, such as during the pause between levels in a game.

Rewarded video ads – are full-screen video ads that users have the option of watching in exchange of in-app rewards.

 

Conclusion

As you can see, there is a high amount of money being consumed from within of apps. When designing a new app, do take these into consideration to make sure you have a successful business.

Cheers.

 

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