If you’re ready to start making money, then it’s time to learn how to develop a profitable app.
In 2016, people downloaded over 25 billion apps onto their phones.
Smartphone users spend 90% of their time on an app when they’re using their devices.
That means if you’re an entrepreneur looking for a way to make some money, you need to know how to develop an app.
But how can you make a profit from an app? After all, that’s why we’re here.
There are a few tried and true ways to make money from your app. Some of them are more helpful for retail businesses, while others are perfect for games.
Check out our tips on how to develop a profitable app.
Do Your Research
Before you start developing, you need to figure out what role this app has.
If you’re already an established business, then your app needs to add to the value of your company.
Learn how to develop an app that makes life easier for your customers. Whether they’re shopping or trying to improve their cooking skills, your app needs to get them to that goal.
Or you could be developing a stand-alone app. Then your goals are going to change a bit.
When your app is a game, then focus on creating longer session lengths. The longer your users stay in your app, the more they’ll invest in your game down the road.
If you’re hoping to gain more exposure for your brand, then work on getting more downloads. More downloads mean more potential eyes on your brand.
But if you want to know how to develop an app to increase sales, then you need to focus on three things. These are daily users, ease of use, and completed transactions.
Take some time to think about your audience, and how they use apps.
Do they use them to kill time? Stay connected? Find new ways to stay active or go shopping? This will help you when you’re developing your app.
How to Develop an App That Makes Money
There are a few ways to make money from apps, but the first step is to create a solid fanbase.
How to Keep Your Users
While it’s always good to get new customers, a loyal fanbase will be the majority of your return customers. So how to develop an app that people come back to?
One solid way to retain users is to offer them badges or achievements for continued use. Think about the app Timehop. They keep track of every day you check into their app. When you access it once a day for an entire year, they give you a special badge.
Duolingo allows users to bet against themselves. If they complete their goal seven days in a row, they get more points.
If you’re developing a shopping app, send messages about new promotions via the app.
By creating a system that encourages users to return, you’ll keep your app at the top of the charts while also building your fanbase.
How to Make Money From an App
Now it’s time to focus on making money. There are four typical ways to make money from an app. Some of them will work better for your app than others, so weigh your options.
You can even run a few experiments to see which one works for you.
1. Free with In-App Purchase
90% of the apps in the iOS store are free. With that many apps offered for nothing, you might wonder how anyone makes money.
One way they do it is with in-app purchases. They reel the user in with a free app or a seven-day trial. Then at the end of the seven days, they remind the user that they can access the rest of the app after they pay a small fee.
This also works very well for games. Apps like Pokemon Go will allow users to play the game free of charge. But when the user runs out of an important tool, they’re encouraged to buy it from the developers for a few dollars.
To make this strategy work, you have to make sure your app offers something unique and necessary. At the very least, your users have to think the app is necessary.
Plus this gives you time to come up with new and premium features over time.
2. One Time Paid App
This app is one that a user pays for once.
Paid apps are not as popular as they once were. But they are still great for well-established companies or brands.
But if you offer a paid app, make sure it’s worth that money up front. Your users won’t pay a dime if they don’t think the app is worth it. Unless your app is something your users need, then you’ll need to market your app.
The only other problem with paid apps is that you always have to find new customers to make money. But it’s also guaranteed payment.
3. Paid Apps with Paid Features
This combines paid apps with in-app offers. While some users don’t like the idea of paying twice, but if your app has high value it could work.
This kind of app works well with “clothing subscription” businesses. These companies offer users exclusive offers, but only after the customers have paid.
Your app can work with the same mentality, but only if you prove you’re worth it.
4. Free Apps with Advertising
This is a great option for apps that are starting off. Customers download your app, and companies pay you for ad space.
But you must be careful with this approach. If you have too many ads that get in the way of the user experience, you’ll lose customers.
Want More Tips on Developing Your App?
If you want more ideas on how to develop an app, then take a look at our blog.
Plus, if you have an idea for an app but no idea how to make it, check out our services.
If you’re ready to get started on your amazing app idea today – contact us here!