One of the important and difficult tasks for any mobile app development company is to make a strategy which accomplishes their aim of creating good apps and to increase their business revenue. There’s no doubt that mobile app market grows rapidly as smartphone sales reaching its peak point. Mobile apps become important part of people’s lives, that’s why it is a key factor to generate high revenue. However, which can make it tough and confusing to choose which business model is right for you.
Here we providing you a list of business model to help you decide which suits your app the best.
- Premium business model
It is the most straight forward model: simply develop your app and sell it. If users want to use, they have to pay first to download the app. Selling your app is the simplest way to generate revenue for your business.
- Freemium model
This model is totally different from first one but it includes premium model. It is a combo of free and premium. Company offers a free version of app first to gather more visitors and users; once the goal is completed it delivers the next version as paid with more features to generate revenue. So, this one is a good approach to get the number of users as well as to earn more revenue.
- In-App advertising
In-App advertising model offers a better opportunity to increase revenue by targeting right audience at right time. Selling advertising in your app can be a good way, but this only works if your app has hundreds and thousands or more of customers.
- In-App purchasing
Just because an app is free that doesn’t mean it won’t cost user. Yes, it will cost them. A Company provides an app for free, but if the customers want any additional features or functionality for app, they need to pay for it. For example, goods or items in games, or removal of in-app advertisement etc. can generate revenue for you.
- Subscription based app model
Rather than selling your app individually, it allows you to sell it periodically (yearly/quarterly /monthly etc). User can consume all the services by subscribing them. This model also permits free app, i.e. a free version of app is available, but after some time user has to pay for full service. This is the most preferring model of delivering tools, content and program functionality to users.
However, the most important factor apart from all that highly affects your business revenue is “Customer satisfaction”.
So, your choice of a business model doesn’t have to be limited to only given options. There are number of business models and ways you can use. With an aforementioned list, we’ve tried our best to help you to analyze the facts that are required to build a good mobile app.
If you’re going to use any one of them, share your experience with us. Leave your comments below.