By Applaudo Studios




How can your app generate revenue streams

Learn whataApp monetization strategy you should implement to generate revenue streams.

The base of every business is to produce revenue. Without a clear return on investment, it is quite challenging to maintain a company’s project in the long term. For mobile application development, this statement also applies, and the impact of apps on businesses lies in their versatility to generate revenue and optimize the purchase of goods and services. While it is true, most developers strive to nurture customer loyalty, generate new mobile users and raise brand awareness, thus generating added value. However, mobile apps are also a sustainable revenue tool through an App Revenue Model. Let’s find out then what this means and how mobile apps can drive your business forward.   

What is App Revenue Model?

Simply put, revenue models refer to the many methods and sources via which the mobile app will generate revenue. It also determines what kind of value the product will provide, how much it will cost, and who will pay for it.   

The app revenue model is an important component of the business plan, which must be completed before going on to the development process. Before writing a single line of code into your app, ask yourself “What do I need for this app to sustain itself?” and then, “What are the characteristics that will drive revenue in it?”  

How can your mobile app generate revenue streams?

Here we have selected the most successful App Revenue Models for your Mobile App. Let’s check them out.   

#1 Opt for a freemium model  

The freemium model is based on a free download with microtransactions within the app. This model offers users the possibility to access its basic services for free. This generates trust and motivation to pay for a much more complete version. This makes freemium a very smart way to attract users.  

Although the download of the app is free and provides access to various functions, these are very basic, so the user is motivated to pay a certain amount to acquire different features.  

Moreover, if this test generates affinity, then it is very likely that the user will opt to buy the more complete package, known as ” Premium “.  

Keep in mind that both Apple and Google will usually take a 30% cut of all in-app transactions of your app both on subscription models and in-app consumables (like digital items).

#2 In-App Advertising   

In 2018, the in-app advertising market was valued at $66.78 billion and by 2027, it is expected to hit $472.64 billion.  

In-app advertising works by selling data-driven advertising space in your app through the use of a mobile ad partner. When integrating in-app advertising into the app’s revenue model, you must partner with an ad monetization platform and integrate their SDK (software development kit), a piece of code that needs to be properly added to their app’s code.  

However, in order to make significant revenue from in-app advertising, your app must have a sizable number of active users who interact with the app on a daily basis. In this sense, before working with any ad network it might be a good approach to work on increasing the user base.  

#3 Set a download price  

This is probably the most direct way to monetize an app. If you have been in the market for some time and you already understand what can meet the needs of your users, whether they are frequent or not, you can then set a download price for your app.  

In other words, the download condition should be to buy your app. This way you will be generating income from the beginning and the user will have immediate access to all the functionalities and potentialities.  

Just like in the freemium models, both Apple and Google will take 30% of every transaction including paid downloads.  

#4 Sponsorships  

Getting a sponsor isn’t the most frequent approach to fund your app, but it isn’t exactly uncommon.  

The method you use to incorporate a sponsor into your app is determined by the product and the partner’s objectives. Placing the sponsor’s logo in various sections of the screen, providing special deals from the sponsor, showcasing sponsors’ adverts, and so, on are some feasible examples.  

We’re here for you

Looking for help to increase your app revenue? At Applaudo Studios we specialize in native development for iOS and Android platforms combining our skill set in Software Development and Design to tackle your toughest challenges and grow your revenue with the support of our team of experts. 

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