Let’s face it, you’re not only building applications for fun. Community building is a business, and you need to make money to keep going. However, with the number of options available to liquefy, what tactics should depend on your application?
It will be clear about the monetization model of one day will help to prove that customers are willing to pay in order to solve the problem you have identified – a crucial part of the validation of the idea of the application.
There are largely three pricing models that bring in all the proceeds. According to a report Distimo, and revenue in the application of free applications to bring in the most revenue in 71 percent of the proceeds paid after the 24 percent and revenue in the application of paid applications in the 5 percent.
If you launch your application using one of these monetization models, you have a greater chance of making more revenue than any other model.
1. Freemium applications and games
This is not just an option most popular monetization of games and applications, but also the most income-generating one, with purchases in the application raking in 76 percent of all revenue in the App Store Apple in the United States and more than 90 percent in Asian markets, according to a report Distimo’s.
The application is to provide freemium game or a free-of-charge to the user with limited features, content or virtual goods. Users can access to the Premium version or additional content by purchasing feature within the application. As this route was used to subscribe for monthly content updates. Free application or game with the purchase process within the application removes the price point barrier for people to download the application and gives the developer the opportunity to prove the value of their products.
One can offer premium content, additional or providing free basic features that require the user to pay to use the full functionality of the application. A good example is the British chef Jamie Oliver recipe app and Pandora Radio application both of which offer additional content, updated every month for a subscription fee.
Provide free basic version of the app for consumers to get fast to buy with the least amount of resistance and allow them to purchase additional features for a fixed price or a monthly subscription once they’re hooked and find value in it.
2. A one-time paid applications.
Users pay only once and to download the application. It is expected to be free updates and feature additions.
If you are interested in the launch of the paid application, and should be compelling enough for users to pay to download even without sampling for the first time. Also, there is no repetition of revenue from existing customers. For continuous revenue stream, you have to search for new customers all at once.
So how do you determine whether your application must be paid one? Most pay offer applications intrinsic value in the first loading, followed by minor additions or design, ease of use and improvements. Most of the useful applications in this category. Take, for example, build your self-esteem through hypnosis celebrities and best-selling author Glenn Harold or application productivity and clear.
3. Paid applications with the addition of paid features.
This is liquefaction hybrid model that has gained traction recently to some extent, but not with its fair share of criticism. Many feel that it is unfair to pay to download the application and then pay again to take advantage of the features. It’s tough for you to build on this, but his work intelligently with the value proposition, and can certainly work, was, going by the numbers.
An example of the application with this strategy is a flight radar app in the top 100 applications, aviation radar Pro.
4. Free applications with advertising.
While the above are all options that require the user to pay to use, and one of the monetization models that Distimo excluded from research is a free app with advertising.
Many applications use this form of monetization. Take, for example Sleep Easily Meditations by Shazzie, that the cost any money to download and run the ads non-intrusive for as long as the application is being used. This application has more than 330 downloads per day and run for more than 20 minutes each time it is used.
You can only make money when you have a large number of users download and use your application on a very frequent basis. So I chose this model to liquidate only if your application calls for prolonged use often, such as the one above.
While there are many options for cash, and a means to achieve any kind of revenue growth over the past years through repeated transactions from existing customers as much as through the new. The value of the life of the customer to determine whether the application is a hobby or business.