Estimated read time: 4-5 minutes
Right now, there's someone out there with a problem or need that only you can solve. Maybe it's a product or service that could change their lives — or at least make them easier. The nice thing is that you don't need a brick-and-mortar store or face-to-face contact to deliver your solution. All you need is a mobile app.
According to statistics collected by Zippia, the future of mobile apps is extremely bright. In 2021, global consumer spending on apps reached $170 billion, which was 18.88% more than in 2020. And although just 5% of users make in-app purchases, those purchases account for 48.2% of that revenue. But if you thought $170 billion was a lot of money, wait until you hear this — Zippia reports that mobile app revenue is projected to reach $935 billion in 2023.
The writing is on the wall — if you haven't done so already, it's time to break into the app industry. A good idea today could very well prove to be a major moneymaker in the future. Once you've got things ready to roll, here are several ways you can monetize your app.
Offer a free version and a paid version
People are enticed by free things, so offering a free version of your app is a great way to allow them to test the waters. Once they get a taste for what you can do for them, that may compel them to upgrade to a paid version that offers even more features.
"The benefits with this strategy is two-fold," Google AdMob reports. "On the one hand, it provides a free option for users to experience the basic functionality of (the) app at no cost. On the other hand, it also provides the app developer with a growing user base for potential monetization via app upgrades or in-app advertising."
That leads nicely into the next method of monetizing your app.
Offer in-app purchases
The app itself might be free for users, but you can bring in extra revenue through in-app purchases. According to Apple, this includes things such as extra lives or gems in a gaming app, a boost in profile visibility for a dating app, photo filters, exclusive access to content or some type of subscription-based service.
Run in-app advertisements
Another popular way to monetize your app is by running in-app advertisements.
"In a world of free apps, in-app purchases and in-app advertising are the highest grossing revenue channels," AppsFlyer explains. "One of the biggest reasons for this is the accessibility of it. Not all apps can sell in-app upgrades or purchases, while most apps can easily implement video ads, banner ads, and native ads."
Create a paid app
If the service you're providing is unique and valuable enough, you might only offer it in a paid version. This also might be a good idea in the early stages of your app.
"Offering a paid version in an early stage can help generate sales revenue quickly to help offset the development and marketing costs of an app and fund the development of future upgrades and launching a free version," Jie Zhang, a professor of marketing, tells the Robert H. Smith School of Business at the University of Maryland.
Zhang adds that there may come a time when you can stop offering a paid version and switch to a free version when it's "strong enough to make money."
Got an app idea? Start building it today!
There are several ways to make money with a brilliant mobile app idea. The hardest part is getting the app up and running. Luckily, AppsTango makes this process as quick and affordable as possible.
When you work with a big-name company, it's easy to get lost in the crowd. Since AppsTango is a Utah-based company, you'll receive a more intimate and personal experience. You will be assigned a dedicated project manager, who will be your primary point of contact throughout the development process.
Since needs vary, you can engage with AppsTango on an ad-hoc basis for support, or set up a full-time development team for larger project needs. Whichever option you choose, AppsTango is committed to helping you get the best value for your money.
Over time and as your business grows, you may decide to bring your development in-house. Not only does AppsTango support you in that process, but they plan for it. Helping you spread your wings and fly is what they do best.
With a highly responsive team of experienced, certified AWS, iOS and Android developers and a long list of satisfied customers, AppsTango is well-suited to bring your vision to life. Visit appstango.com today to get started!
