Just taking services of an Miami mobile app development company to help see your idea take shape of an app isn’t enough. Because once you go all in, you will be in a need of revenue. And to help your business generate revenue, you need a well-defined revenue model in place. Even if you are not someone with an idea of app, but just a part of company that does mobile app development in Miami, then having a little know-how of revenue models could help you understand the app-business landscape in a better way.
So let us have a look at 4 app revenue models that you should consider before launching your app for your users.
1. Freemium Models
In Freemium models, you give your users a limited access to all, or some, features of your app. The limit is only removed once they have paid a certain amount. The limited excess could be defined according to your needs. One way is to give all features for free, but for a limited time period. Once the deadline expires, users can choose to work with the limited version of your app, or can pay you for removing the limitations. The other way is to just give them a limited version so designed, that they are enticed with the performance and importance of your app. You can then encourage them to go for the premium features by paying a certain amount. Dropbox, Basecamp, Evernote are examples of freemium model.
2. In-App sale of Virtual Products
Mostly gaming apps prefer this model. In this, once users are addicted to a game, the development team could prompt them for in-app purchases related items that could enhance their gaming experience. Like in an FPS game, the items could be better guns, binoculars, bullets, shields, and other warfare related items. To have a success virtual-good revenue model, it’s important you get a good Miami mobile app development company that has an experience in making apps that are almost addictive for users.
3. Charging Fee for Download and Services
This model works only if your app offers something that no other app on app store offers for free. It’s not easy to survive with this revenue model, as according to a research not more than 3% people are willing to lose money to buy an app at the time of download. Entertainment apps like Amazon and Netflix have been successful in implementing this model as they produce video content that not many produce.
4. Ad Placement
It’s the most simplest method for earning revenues from your application, but not the one to make much difference if your number of monthly active users haven’t cross a particular limit. With this model, your revenue would depend on per user impression and click through rate. The rates too are not that high, and you would need at least a thousand users to make any significant amount of money. The biggest con of using ad placement for revenue generation is spoiled user experience. If you own a chatting or gaming app, that you maybe using this option won’t qualify as an intelligent one. Paid advertisement videos, on the other hand, are somewhat better than banner ads that pop out of nowhere. You can award your users with virtual money or in-app good for every short video they view on you app.