The apps that make the most money are free apps. But how can you utilize this lucrative strategy to your advantage? Keep reading to find out!
Ever since the iPhone launched in 2008, the app market has grown significantly each year. Now, 77% of Americans own a smartphone, up from 35% in 2011.
There’s big money in apps.
In fact, by 2021, the global app economy is expected to be worth $6.3 trillion. Last year, it reached $1.3 trillion, so if you’re aiming to make money, applications have a huge amount of potential.
You may assume that the best way to earn a lot of money is to launch a paid app. But free apps can actually be much more lucrative. Read on to learn how.
How You Can Make Money With Free Apps
Deciding whether to charge for your app or choose to develop a free app is one of the biggest decisions you’ll make. But free apps can be monetized in a number of different ways, including:
The biggest source of revenue is usually from in-app ad-revenue. The good news? Most people expect to see ads when they choose a free app. There are three different ways you can use ad revenue:
- Cost per Action (CPA)
- Cost per Click (CPC)
- Cost per Thousand Impression (CPM
Most free apps use CPM since this doesn’t require the app user to click on the ad in order for you to earn. It’s also less intrusive for the users.
Some people hate ads, and they’d rather upgrade to remove them. For this reason, some people develop two versions of the same app; one with ads (for free) and one without (an upgraded paid app).
In-app purchases generate approximately 76% of all revenue generated through free apps.
If you’re thinking about creating a free app, one of the best things you can do is include an in-app marketplace. This is especially true for games with multi-players, as in-app items can allow users to get an upper hand on their competitors.
Mobile Marketing Automation
If you decide to offer a paid conversion within your free apps, you can then move users down a sales funnel with multi-channel messaging.
- Alerting users to content they can buy, like a new album in iTunes
- Encouraging users to book an activity, hotel, or flight within a travel app
- Persuading users to purchase a service or commerce in an e-commerce app
You can use mobile marketing automation in a few different ways with this tactic. You can use push notifications with in-app messages, and email to use an integrated campaign to reach users even when they’re not using your app.
Combine The Above Strategies
If you really want to get the most profit possible from an app, you should aim to use a few different monetization methods. One example is to give users free in-app items if they watch a video advertisement or download another app.
Using multiple monetization methods will mean you can give your users plenty of options, while still making the largest possible profit.
Ready To Get Started Now?
Are you ready to begin developing your free apps? If so, we can help you design a lucrative solution. Get in touch today to learn how you can create a free app that puts lots of money in your pocket.