Tuesday, October 7, 2014

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.

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