Turn your app into an app store success and start making money with apps now. Check out this simple guide to find out how.
You’ve developed an app that you think is pretty awesome. The only problem is your app isn’t making you any money.
This can be a huge bummer. Creating an app is a labor-intensive process.
Brainstorming ideas, figuring out functionalities, testing prototypes – a lot of people don’t realize how much goes into creating an app. And certainly, you want compensation for all of your hard work.
Here’s the thing – a lot of mobile app developers fall apart after the installation process. This is because they don’t realize that getting their app installed is only half the battle.
If you expect installation costs to make up your entire revenue, then you’re limiting yourself financially.
Let’s take a look at eight ideas for making money with apps now.
1. Paid Installation
Charging users for installation is the most straightforward idea for making money with apps. However, it isn’t necessarily the most lucrative.
This is because there is no repeat revenue from your customers. After they pay for the app and download it, that’s it. And while these initial payments can be a good source of income in the beginning, it’s not sustainable.
Plus, your app will need to be compelling enough for people to buy it without trying it first. Not many people are willing to do this.
To get around this obstacle, you could offer a free-trial period for your app. However, you will need to be careful to make sure customers know they’ll be charged after a certain period of time. Otherwise, you’ll end up with some angry customers.
2. In-app Purchases
Another option for making money with apps is to make the app free and then include in-app features that users must pay for individually.
In-app purchases are especially great for mobile developers with game apps, as many players are willing to pay extra for coins, gold, or other features. Utility and productivity apps may also find in-app purchases to be a lucrative option.
There are two ways you can set up an IAP (in-app purchase). You can either make it a one time purchase (aka, I want to unlock this feature) or an ongoing option (aka, I want ten coins for 99 cents).
If you’re in the news feed market, in-app purchases are also a great option. You can charge a monthly subscription for the articles and information you provide.
When creating in-app purchases, you need to make sure they’re enticing enough to justify the cost. If it’s something the user can easily get for free elsewhere, they likely won’t want to pay.
Freemium is the “best of both worlds” solution for app developers.
With this option for making money with apps, you’ll have two versions of your app: one that’s free and one that users pay for. The paid for version typically offers more features, content, or virtual goods. And often, the paid app is an ad-free experience (think Pandora or Spotify).
This is a great opportunity for users to get a sense of what your app is all about before committing to making payments.
If you don’t like the idea of charging users for your app or app features, ads are a great alternative.
Most users won’t mind an ad now and then as long as the content is free.
Payment is based on the number of ad views or ad clicks. Many social media apps, like Facebook and Twitter, use this approach.
But for you to generate a healthy revenue, you’ll first need a substantial amount of downloads from users. Otherwise, you’ll only be bringing in pennies.
Unless your app is huge, you probably don’t want ads to be your main source of revenue. It’s best to combine ads with another option on this list.
Below is a short video that shows how to use Google AdMobs in your app:
Landing a sponsorship is another option for those who want to keep their app free.
Asking for sponsorship will go somewhat like this: “I’ve got a great app idea. Here’s the plan. I will label it with your brand for X amount of dollars.”
Or, “I’ve got a great app on the market. It’s got 100,000 downloads. I’ll showcase your brand when I update the graphics for X amount of dollars.”
With this method, you need to be prepared to put yourself out there for rejection. And, similar to advertising, you’ll likely find more success if your app already has a bit of popularity. It’s going to be hard to find a brand to work with if no one’s heard of your app.
6. Sell Your App
Maybe you love the process of creating an app, but the whole idea of marketing/monetizing it isn’t your thing.
If that’s the case, you may want to look into selling your app. There are several marketplaces in which you can do this and make pretty good money.
Keep in mind this strategy will only generate money once. But, if you’ve got a lot of great app ideas and you have a knack for creating them, you may be able to carve a decent income for yourself.
7. Sell Your Source Code
If you like the selling idea but aren’t keen on putting your entire app in someone else’s hands, you may also want to consider selling the source code.
Developing source code takes a lot of time and money. And many app developers are eager to get their hands on a template so they can launch their apps sooner.
Selling source code is really a win-win situation. Developers love it because they don’t have to spend tons of time coding. And sellers love it because they get to make quick money without worrying about download numbers.
If you’re just starting out, your best option may be to try a combination of strategies.
For example, you could do advertisements and paid features or a paid app with paid features.
If you go for a hybrid solution, just make sure that your customers are still satisfied. Bad reviews can really hurt your ranking in the app-store, so always keep user experience at the forefront of your decisions.
And, if you get a bad review, just make sure to respond to it.
Making Money With Apps: Wrap Up
As you can see, there are many creative ways to make money with apps, but it does require some hard work and marketing savvy.