How to Generate Revenue from a “Free” App: 4 Modest Conspiracies.

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.

Get Users First Monetize Later

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

Winding up, all that i want to say is if you want to develop an app for profit- launch it “free” is the way to go.

Apple’s New Mobile Payment System- a Turing Point in Every business

According to the IDC, Apple’s influential niche this year shows an 11.7% share of the smartphone market slightly down on the 13% of the previous year. It’s true that Android still dominates the smartphone market with an 84.7% market share. However, Apple continues to innovate and shift volumes at the top end of the smartphone market to trickle down to those looking for a cheaper gateway to Apple’s ecosystem.

Been receiving global headlines and reams of analysis from a press, Apple has introduced today a brand new mobile payments system called Apple Pay- a new accretion in app development, can say. Why not? This technology is expected to overtake credit cards as a predominant payments medium, marking a brand new day for business owners across the globe.

So, How Does Apple Pay Works

 Apple Pay is shipping with the iPhone 6 and 6 Plus, as well as the forthcoming Apple Watch and compatible with 5th generation iPhones too. A Near field communication (NFC) chip is included which coupled with TouchID can move to take a bite out of the mobile payments market. It will support American Express, MasterCard and Visa credit cards via more than 800 million iTunes accounts.

Now, Apple has a secure and controlled architecture in iOS and that TouchID fingerprint scanner offers an innovative authentication process. But how do we convince customers that they won’t be left out of pocket if and when transactions are compromised? One of the big aspects in Apple Pay is that each purchase utilizes a uniquely generated, one-time code instead of using names or credit card information at checkout.

But will customers be convinced of the ease of use to finally ditch their physical wallet in favour of an iDevice? Time shall decide. Have an idea and interested to create an iphone/ipad app for your business? This is the right time to approach a professional.