Things to Consider for Making Money from App Development
As people turn to mobile phones for their every need, mobile app development has become the most effective way to earn money. Developers are coming up with new ways to get a share of the market of $190 billion, but is this so easy? With apps like NetFlix, Tinder, Clash Royale, and Candy Crush Saga taking the bigger piece of this revenue, the remaining 2.2 million apps are struggling to meet their expected ROI.
Wondering how will your app surpass millions of applications to get the revenue expected? This article will explain the factors to consider and add into your app marketing strategy along with the top app monetization trends for 2018.
So, are you ready?
A Roadmap to Build a Perfect App and Earn Money
While developing a mobile application, the mobile development company should consider various factors to ensure that they do not spend endless hours and fund in application development that can’t earn expected revenue:
Find Your Niche Area
You need not begin your journey by competing with apps backed by tech giants like Google and Facebook. It would be quite typical to earn money in their respective markets. Rather, it is more profitable to find your niche market and focus on pushing an innovative app.
Do not spend years to launch your app. The demand for your mobile application might not exist by that time. So, don’t take a risk. Invest in an MVP, prefer agile methodology and launch your app in the market at the earliest. Learn from the market response and continue to push an update regularly. This will help to validate your app idea as well as let you earn more with lower investment.
Focus on App Marketing
To make a larger target user base hooked with your mobile application, it is necessary to promote your app well. Invest in ASO strategy, use social platforms and focus on referral methods for higher app visibility, conversion rate, and thus, ROI.
Partnership with other App Developers
This method might not make a difference in the money earned from the app directly, but it can be a great source to grow your audience. However, make it certain that you reach a successful app of your niche area for the same. Working with moderately successful app might bright huge traffic on your app, but only a few will be downloading your app.
Consider App Monetization Trends
With our world drifting from mobile-first to mobile-only approach, it is necessary for the mobility experts to focus on the app monetizations trends for taking the best use of them for making more profit. For 2018, the mobile application development companies will watch out the following app monetization trends:
App Experience will matter for In-app Advertisements
In 2018, the user experience will be the core of in-app advertisement method of earning money from app development. The developers will bear in mind that too many ads in their application will ruin the user experience, resulting in negative reviews. But then can still look forward to implementing this app monetization mechanism with a better approach to using safe brands, providing interactive ads, smart ad targeting, etc.
In short, the application developers will be more concerned about making a balance between the number of ads, the place they appear, and the way the user interacts.
Freemium apps will earn more
With people getting more addicted to free apps, the freemium app monetization strategy is here to stay. This approach of app marketing and earning money is letting the apps record longer sessions and higher user engagement/retention rate, which is eventually improving the app ranking in the app store and thus, the revenue. Because of this, the app developers are slowly drifting towards building free to available applications.
Besides, the freemium approach is helping developers to convince users for the premium package by giving them a positive experience without spending a penny. This implies that even the developers with paid monetization approach can get the perks of freemium strategy, providing they do not cheat their users in the first place.
Users will get frustrated if asked to pay more for unlocking all app features
In 2018, the users will question paying for unlocking some app features, when they have already purchased the app/game. To deal with this situation, the developers will have to make better in-app purchase strategies with a prime focus on user engagement. It’s true that users who don’t pay much won’t be useful to them in terms of app revenue. However, they can uplift the app’s engagement and retention rate, which can boost the conversion rate and downloads. The end users will be more familiar with the ways mobile development company make money from apps and will expect more clear and fair app monetizations methods to be adopted.
App Subscription models will be more like SAAS subscriptions
Subscriptions models are going to be more complex in 2018. It won’t be a simple buy or buy not process. Rather, it will become a SAAS model with redefined pricing structures in different tiers. This will provide application developers with an opportunity to lure users for opting their lower tier membership who were resisting due to a high subscription fee. However, the mobile app developers will have to discover newer ways to help users find why they should upgrade to the upper tier subscription.
Besides, focusing on the aforementioned trends to craft the perfect app monetization strategy, the mobile app development companies will also have to go for hybrid monetization methods to earn money. The competition is rising. It won’t be enough to rely on a single method; they have to put equal efforts on different platforms to bring better outcomes. In short, staying a step ahead of others will be the secret weapon to reach the top of the app market and enjoy higher revenue.
Author Bio:-Being in the writing business for several years now, Tripti Rai is presently focussing on unfolding the elements that make mobile devices interesting. Currently associated with Appinventiv as a Content Manager, she is keeping herself well read with how lives are/ about to change in the wake of world entering the Mobile Era and how to prepare the world for the race. When not writing, you can find her slurping chocolate shake in a stray dog’s company.