How to Make Money With Mobile Apps

by Oluwatosin Alabi

As a general rule, your first step in mobile marketing strategy should be creating a mobile website. It’s the bare minimum you need to do to make your business visible online in an information-driven world dominated by smartphones and the internet. Mobile apps, on the other hand, complement your website by allowing users to complete certain tasks more conveniently than they could on the site, and by improving marketing efforts.

90% of the total time spent on mobile daily is spent on apps. 49℅ people open an app more than 11 times a day. Also, in 2019, mobile apps generated a total of 462bn USD worldwide, and that was before the pandemic caused a lot more businesses to switch to a remote approach for their operational methods. There is no doubt that more people are using mobile apps than ever before. but that information, however, is not enough to decide to develop an application. So we’ve talked about why you need a mobile app in detail here. Now let’s talk about how to make money with your mobile app.

How App Owners Make Money

There is no definitive answer to the question of how much money you can make from an app. A lot, Maybe more. Because of this, we are here to assist you in getting your idea off the ground and to show you exactly how you can make money through apps.

1. In-App Advertisements 

Statista shows that more than $186 million would be spent on mobile ads this year. Needless to say, mobile ads drive the market. In-app ads allow you to advertise affiliate products inside your app, and you get paid if the user interacts with the ad. The most common campaigns used in affiliate marketing are cost per click, cost per view, and cost per install. Networks such as AdMob and Flurry are great for making money from apps through advertising. Depending on your needs, you can display your ads using banners, native ads, videos, interstitial ads, or even rich media ads with audio, video, and text.

2. In-App Purchases

IAPs are used to offer exclusive content or additional features to users for a fee through a free mobile application. With IAPs, mobile app owners can effortlessly provide their applications for free, then utilize ads to market upgrades to a paid version, paid feature unlocks, special items for sale, or even added services to anyone who downloads the free version. This allows the developer to profit despite giving the basic app itself away for free.

According to Forbes, this strategy generates the highest revenue for publishers. This model is used mostly in gaming apps because they deal majorly with digital money. The idea of converting free users into paying customers is a great way to add value without having to be too intrusive. You must also make sure your users remain engaged in your application so that they continue to pay. There is a great chance to create an app with this strategy and make money from a low-monetization method. Clash of Clans and PUBG, two of the best free games, provide their users with IAPs to enhance their user experience.

3. Freemium Upsell

Freemium pricing is often used in the SaaS and gaming industries to encourage customers to subscribe to their basic features so they can then upsell them to become paid users. Spotify and LinkedIn are good examples of the freemium + upsell pricing strategy.

For a service that’s new to the market, offering a freemium version can be a quick way to drive trial because of the low barrier to entry. … In fact, if the right business conditions are met, a freemium model can help drive faster recurring revenue and profit growth than a paid-only model.

Why try to convince customers to pay when you can let the greatness of your product do it for you?

5. Subscription

While the paid subscription model is the most common way for an app to be monetized, subscription-based mobile apps, like Netflix, Amazon Prime, and Dropbox, have gained massive popularity in recent years.

Similar to in-app purchases, this model has ‘subscription periods.’ If a user is subscribed to an app and has an active subscription period, they can use its premium features until the subscription runs out.

Users start for free for a set time and then choose whether to sign up for a paid subscription. As a result, it has become one of the top monetization options. As a result, recurring revenue is generated. Apple and Google also charge lower transaction fees to app owners with long-term subscriptions.

Do we need to mention that subscribers are usually loyal app users? The key to achieving success with the subscription model is to provide a constant stream of fresh and valuable content and services. Users will keep subscribing as long as you keep providing value.

6. Crowdfunding

Mobile app development and promotion require hard work, time, and lots of resources. If you have a great app idea and are willing to put in the time and hard work to bring it to fruition, you should not allow a lack of funds to bury your idea.

Crowdfunding is a great way to bankroll your mobile app development and navigate other hurdles that come with the promotion process. Using a crowdfunding platform like; 

  1. Kickstarter,
  2. Indiegogo,
  3. CrowdFunder, and
  4. AppsFunder,

you can raise the funds you need, get feedback from other creatives, and gauge the early interest and success of your app upfront.

However, the catch here is, your pitch has to reflect your A-game. It must be good and compelling enough to make people want to open their wallets. If you tried and received no funding, then you might need to rethink your project. However, if people enthusiastically endorse your idea, you’re probably onto something!

7. One-time payment

For this model, the users don’t have to worry about monthly or yearly subscriptions. They get full access to all the features an app has to offer for a lifetime after paying a one-time fee. This fee unlocks all hidden and premium features contained in the app. The fee in question can be a large sum or a low one. But whatever the amount, once paid it never has to be renewed ever.

Just like the other methods we’ve talked about, the only reason why users will pay this one-time fee in the first place is if they’re getting value from your app. You have to ensure that your app is solving a pressing need. Remember, users, walk away sooner than they walk in.

In conclusion, we hope we’ve been able to help you realize there are numerous ways to make money with apps, but it will take some planning and a multi-faceted marketing strategy. 

Remember, don’t overuse app monetization methods. Excess ads and insufficient functionalities are huge turn-offs for mobile app users. As a mobile app owner, you should realize that your app will only generate revenue if you have loyal users. Your app should be easy to use, and the appearance of ads and offers should be as subtle as possible. 

Epower.ng transforms ambitious brands through the thoughtful application of design & technology. Our execution model is in sync with the latest trends so we don’t fall short in offering the best digital solutions.

So, if you have a project you’re looking to partner on, what are you waiting for? Give us a holla!

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