The price tag of an app often becomes a barrier for people
to download it whilst acting reluctant to generate money. This is why counter
intuitive that a free app became an easy mode to generate revenue.
So how do you make money from a free app? Let’s see a few surprising strategies.
Let’s take an example to illustrate how this works. Whatsapp
which was acquired by Facebook for a staggering $19 Billion, on the surface,
has no revenue model which means no subscription fees or mobile ads. But see they
do have a lot of users with 18 billion transactions a day.
As simple this model is defined to be getting the users
first and monetize later regardless to the data size, advertising or something
else.
Act As a Vehicle To
Deleiver Quality Service / Product:
Few examples for this model will be
·
Uber, a mobile app where users can request and
pay for a ride sharing service.
·
Doctors on Demand application let users to get a
consultation from a licensed physician through a video conference for $40 for
15 minutes
·
Besides, there are many online shopping apps to
purchase pretty much anything and everything.
Mobile Advertising
Is An Aid:
Almost projected to reach $31.5 Billion this year alone, many
mobile ad companies have sprouted with various revenue models most of them in
conjunction with apps that have in-app purchase and consequently allows a free
app to generate revenue even if the user doesn’t make any in-app purchases.
In-App Purchase
Otherwise the “Freemium” Model
Whilst your users are getting purchase an app for absolute
free price, they are provided with an opportunity to purchase additional
services. Not to forget, Apple retains
30% of the revenue generated from this mechanism.
·
Unlocking “Pro” Version of the App besides
unlocking varied features
·
Allowing the app to work after a trial period
·
Disabling ads is currently the highest grossing
app strategies.
·
Including additional content like a song, story,
game level, etc
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