What are the ways to make money with APP?

App developers often ask themselves a question: how can I make money through my APP? Before looking for the answer, developers may want to understand all the different options for monetizing their apps. Because it is very important for developers to understand all the possibilities for monetizing their apps, let’s take a look at the ways that apps can make money.

The “Paid Apps” Business Model

To put it bluntly, developers can sell apps directly, and this is the business model of 'paid apps'. For example, the following applications.

Freemium Business Model

Here, the APP can be downloaded for free by users, but additional features will require payment.

Selling Extras: In-App Purchases

Some features may be available through in-app purchases (IAPs), for example, you can allow users to pay to opt out of in-app ads. Sometimes, users may purchase paid items in order to reach a new level in the game . If we choose this business model, we must try to immerse users to ensure that more users will desire the paid features of the app.

Then it is also important to monitor your competitors and understand how they monetize their apps.

Example: There is a strategy game called “Clash of Clans” that uses smart technology to influence users to purchase additional features. That is, when a new user starts playing, everything the user wants to do is very fast (create buildings, form armies, etc.), and then, as he evolves in the game and reaches a certain level, his subsequent game journeys will take more and more time, unless he pays a certain fee, which speeds up the game.

For example, when a user is playing a certain game, it only takes 60 minutes to upgrade from level 1 to level 20, but it takes 2 days to upgrade from level 30 to level 35. Some users will become anxious and will be more likely to purchase additional features to speed up the game.

Lite and regular modes

It is possible to allow users to test the app in a stripped-down version, with the obvious intention of selling the official version with all available features.

But we still recommend that you create a version that uses in-app purchases rather than a lite version, because it is generally difficult for users to fully understand and see the advantages of the full version.

In-app advertising

You can add advertisements in the APP to make profits. These ads usually promote other apps. In China, they are generally charged on a CPA basis, that is, based on how many users are brought in by placing ads in your app, you will be paid a certain amount per user. Of course, if we want to promote the APP ourselves, but the budget is limited, we can also exchange advertising space with some related applications to achieve mutually beneficial results.

At this time, we recommend that you choose the right type of ads to insert into your app. In fact, in some apps, ads can appear full screen while playing a game. But at this time, users are unwilling to click on the advertising link and exit the game, and it will also cause users to uninstall your APP or go to the app store to write a bad review for you.

In this regard, we have learned some common ways for APP to make profits, and everyone can choose different ways to make money according to actual conditions. We can use in-app purchase features, create paid apps, and create in-app advertisements. But, seriously! If a user purchases a paid app, I'm not sure if they would be willing to see ads in that app.

Freemium Model

At present, the freemium model is the leading business model. Why? Because users can understand the added value of your product, because you reduce their risk in purchasing the real thing, and because you are completely free. Most of the apps in the APPStore are free. Free apps can bring downloads, and I believe no one will question this.

If you create a free app, you will inevitably hit paid competitors, but we should always monitor the situation of major competitors.

However, the freemium model is not necessarily the best business model. You have to choose the right business model based on your competitors and the goals of your app. In short, for the freemium model, if the number of users does not reach one million, it may be difficult to make a profit. In fact, some developers use a freemium model, but there is actually financing behind it.

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This article was compiled and published by @Cicada Master (Qinggua Media). Please indicate the author information and source when reprinting!