You’ve got the creative part down — now it’s time to make money! Here’s what you need to know about structuring the best pricing models for money making apps.
Pricing Models To Create Money Making Apps
You have an amazing app idea and are having it designed and built by a professional app developer.
Congrats, that’s a great start!
But the next step is critically important: figuring out what you will do to turn your app ideas into money making apps.
The potential for making money with apps is very lucrative, especially with more than 2 billion people now using smartphones.
The United States leads in mobile usage per person, with an average of 87 hours per month spent using mobile browsers and apps.
Just imagine if you could just sell your app to only 1% of mobile users; this would give you approximately 20 million downloads!
Even an app priced at $1 would turn you into a multi-millionaire.
But don’t think you can just waltz in and start making millions.
With both the Google Play Store and Apple App Store having roughly 2 million apps, there’s plenty of competition in the app creation business.
Yet, despite the competition to wade through, there are still plenty of app inventors who make a decent living (or much better) from their apps.
You just need to make sure you are using the best pricing model for your audience.
Continue reading to learn how to make money from your app with an attractive pricing model that draws in a deluge of users.
Make It Free
Apps that are free generally receive a much, much greater number of downloads than apps with a fixed price.
As such, many app inventors decide to offer their app for free, but this doesn’t mean you won’t earn any revenue.
With free apps, there are other ways you can get paid for usage of your app.
The most popular method is to insert ads into your app.
Each time a user presses on the ad that is displayed, you will get paid a little bit of money from your chosen ad network.
Since ads can be annoying to many users, it would be smart to offer a premium option (in-app purchase) that removes the ads.
Voila! You now have a way to earn money regardless of which route your customers take.
Another option is to offer your app free for a limited amount of time (trial period), then a purchase or subscription is required.
You can even change your existing fixed-price app to a free app and put a “limited time only” tag on it.
Both options will increase your user base, and many users will rate your app.
If it’s highly rated, people are more likely to pay for it.
In-app purchases can also be profitable.
For instance, if you have a game app that’s free, you can offer users the option to pay for weapon upgrades, new characters, virtual coins, etc.
If the game is fun, people will love it enough to pay money for it in one way or another.
Offer A Lite Version
Many app inventors are having success turning their apps into money making apps by offering a lite version (also known as “freemium”).
In this model, you have multiple versions of the same app.
The free version doesn’t come with all the bells and whistles — just enough to make them want to try it.
The idea is to give your paid versions all the best stuff, so that people will want to upgrade.
The free version is simply to draw in users to download it.
This concept can be used for app games, as well as other types of apps.
Take a look at Instapaper, a popular app that was released as both a free version and paid version.
This model enabled Instapaper to make a lot of money and eventually get acquired by Pinterest.
The great thing about freemium models is they won’t devalue your brand.
If you only had a free version, this could make it harder to charge for future apps.
Freemium models also work well for gaming apps. Users begin with the free basic level, then move on to the next level, which is paid.
According to a study by Distimo, the selling prices of mobile games dropped by 28 percent in the last 12 months.
However, on the flip side, freemium game sales increased tenfold during the same time frame.
Choosing The Best Pricing Model For Your Money Making Apps
If only there was a magic formula, every app developer and business would use it to increase their revenue.
But since there isn’t, you need a bit of good ol’ fashioned marketing research.
Your audience, the type of app you’re developing, and other factors play a role in how to market and price your app.
For instance, if your audience is the younger gaming audience, they are likely broke.
In this case, your best options may be to display ads or offer the freemium model.
You could also price your app cheaply, if you feel it would attract your audience.
However, if there are a lot of other apps similar to yours, free downloads are a must so users will give it a try.
We believe most users expect apps to be in the range of “free” up to 99 cents.
If you go beyond that price, then you need features that are different AND valuable to your customers.
Of course, you can always mix and match your price models.
First, begin with free downloads, then price it as 99 cents or more.
This will depend on what you believe your market is willing to pay for it.
Finally, pay close attention to reviews your app receives to see if there are any changes or flaws you need to address in your future app updates.
Paying attention to real user feedback is an extremely valuable way to find out how to improve your app and therefore increase the money you will make from your apps.
Bring Your App Ideas To Life
If you’re serious about creating money making apps, then you need an awesome app developer.
BrainyApps has a talented, creative in-house team of designers, project managers, and coders who will listen to your ideas and design your app to meet your expectations.
Check out our reviews from real app inventors like you who have turned their dreams into reality.
Once your app is completed, we launch it in the app stores for you.
We have various marketing packages you can use to develop stand-out money making apps.
We can even provide ongoing support and maintenance.
Mobile users are spending 89% of their time on mobile apps and only 11% on websites, so stop doodling your app ideas and start turning your amazing app idea into reality!
Contact BrainyApps today for your free app idea review.