Make money through Mobile App?

The mobile app market is worth billions of dollars. As a result, it's fair to believe that there's a lot of money to be made. This is good news if you already have a mobile app or are considering making your app idea a reality with mobile app development.   Now the question is, how much money can you expect to make? Well, the answer to this question is highly dependent on a variety of factors. Your app may not make a billion dollars, but you may get a slice of that pie and still make a lot of money. Surely, the first step towards accomplishing this is mobile app development, and those of you who already have one, congratulations; you've already gotten a head start, but it's not too late to make changes if your current app isn't producing money hand over fist.   One of the elements that affect your revenue is whether you create for the Google Play Store or the Apple App Store. It also depends on your app's revenue model.    

What is App Revenue Model?

  A revenue model is an earnings structure. A revenue model specifies the sources of income. It also determines what value the product will provide, how much it will be worth, and who will pay for this value. In other words, when we discuss app revenue models, we are referring to the methods and sources via which the mobile app will generate revenue.   The app revenue model is an essential component of a business concept (or business plan) - the document that should be produced prior to beginning the development stage. If you decide to raise further funds for your product or sell it, investors will be very interested in the app revenue model.   There are various distinct types of app revenue models, and developers can combine them in one app to increase revenue.    

1. In-app Advertising

  In 2021, the in-app advertising industry was worth 196.78 billion dollars, and by 2027, it is predicted to be worth 472.64 billion dollars. People spend 89 percent of their smartphone time playing games and using messaging and shopping apps. When in-app advertising is included in the app revenue model, the app owner is compensated for showing adverts within the app. To do so, an app owner must work with an ad monetization platform and integrate their SDK (Software Development Kit),which is a piece of code that must be correctly integrated into your app's code. Ad monetization businesses typically provide extensive instructions and support in the event of questions, so this is not a difficult process.   In order to make considerable money from in-app advertising, the app must have a large number of active users who use it on a regular basis. So, before collaborating with any ad network, it's a good idea to work on growing your user base.    

2. In-App Purchases

  Users can purchase certain features, content, or services within an app through in-app purchases. They are a broad concept that encompasses a variety of revenue streams available after mobile app development.  

• Buying consumables and non-consumables: Consumables are products that can be bought and used only once, such as an extra life in the game, virtual money, and accessories. They can't be utilized again once they've been depleted.

  Premium features that do not expire and can be utilized several times are known as non-consumables. An additional filter in a photo app is an example.  

• Freemium model: Freemium apps are available for download and come with two sorts of features: basic functions that are free to use and premium features that need payment. The idea is to allow a user to try out and appreciate all of the premium features in the hopes that he or she would upgrade later. Typically, such apps offer a free trial period. While the goal is to persuade as many users to pay as possible, it's critical to strike the correct balance between what's free and what users must pay for.
• Subscriptions: Cloud storage platforms, music, and video streaming services, news resources, and publications are all examples of subscription-based services. When a customer signs up for a subscription, they will be paid a set amount on a regular basis – such as monthly, quarterly, or yearly. It's also customary to offer a free trial period to entice customers to sign up. Some apps are built on non-renewing subscriptions that give users access to content or services for a set amount of time. Seasonal sports applications that offer a subscription to streaming video frequently employ this concept.

3. Data Monetization

 Although selling customers' data may not appear to be particularly nice or ethical at first, it is a legal way to make money. At the end of the day, you're not providing any personal information because all of the data is counterfeit. You can explore data monetization as an income stream if your app captures information that could be useful to research institutes, marketers, product owners, or other third parties. Users must be aware that their data may be shared with other parties, so it's critical to make this information clear in documents like the Privacy Policy and Terms of Service.    

4. Affiliate Marketing and Lead Generation

  If you've built up a sizable network of interested users, you might want to pursue affiliate marketing and lead generation approaches.  

Also Read: Trending eCommerce Apps earning in Billions 

Affiliate marketing comprises integrating adverts for other items in your app and earning a fee each time your users tap on an ad and buy anything or fill out a form. To make it work, you'll need to target the same audience as the app you're promoting.   Lead generation is the process of gathering contact information from people who click on an advertisement and agree to share their contact information.   There are various affiliate marketing networks to choose from, and you are free to join as many as you like to increase your earnings. However, just as with adverts, it's difficult to predict your earnings because user behavior is typically unpredictable.    

5. Sponsorships

  Having a sponsor isn't the most frequent approach to monetizing your app, but it isn't exactly uncommon. Subway sponsored PrePlay, a predictive game app, for the Super Bowl XLVI in 2012, in an attempt to engage football fans and increase brand exposure. Marriot supported the introduction of the Gayot mobile app, which featured expert restaurant evaluations. Marriott was promoting its Rewards Chase Card to business travelers in this way.   Placing the sponsor's emblem in various sections of the screen, providing special deals from the sponsor, showcasing sponsors' adverts, and so on are some basic possibilities.    

6. Paid Apps

  The bulk of apps in app stores are available for free download. There is, however, the option of offering premium apps, which demand payment in order to download.   The revenue from a paid app is directly proportional to the number of new users who download the app. App owners must put in a lot of effort to build a new user base in order to generate consistent income throughout time.   It's difficult to persuade people to pay for an app when there are so many free options. Paid applications are frequently supplied by well-known brands or reputable institutions that are well-known for their non-app business. When it comes to paid app revenue models, a new startup app that has not previously demonstrated value to customers is likely to fail in its monetization attempts.   To get positive reviews, an app must be of excellent quality, have unique and advanced features not found in competitors' apps, and provide an overall positive user experience.    

Conclusion

  With mobile app development, there is surely a lot of money to be made. Even free apps generate revenue. The amount of money your app can produce is determined by a variety of things. The platform, the sort of software, and your revenue strategy all have a role.