One issue has not been resolved in a world where apps have become an integral part of everyday life, and that issue is how to profit from them. Creating a paid app may seem to be the most logical approach. However, this solution is not as realistic as it may appear when considering that almost all of the applications in Google Play and the App Store are free to download and use. Therefore, do all of these creators of free applications work for free, or do they get money from their free applications?
9 Ways to Make Money On Free Mobile Applications
There are a variety of monetization strategies that may be used to generate revenue from free mobile applications. These are the nine that get the most attention:
Advertising
Increased smartphone adoption and user activity, particularly in mature markets, has made in-app advertising the dominant source of income for mobile applications. In the year 2020, when the COVID-19 pandemic enhanced digital demand, there was an increase in the popularity of mobile advertisements.
Referral marketing
Referral marketing is an alternative kind of in-app advertising. The primary idea behind this is that you will be compensated monetarily for any clicks, views, impressions, or downloads of a related product or service generated due to your application’s promotion.
In-app purchases
One of the most effective methods of monetization is the use of in-app purchases. In 2020, compared to 2019, the amount of money spent by consumers worldwide on apps had year-over-year growth of thirty percent. The cost of in-app purchases inside the most popular non-game applications rose to $5.99 in 2020, which is 1.5 times the median price of $3.99 in 2017, indicating that people are ready to pay more for premium content.
Subscriptions
A user may enhance the app’s functionality or get a new level of desired access by purchasing a subscription, which grants the user access for a certain amount of time. Apps from different categories such as productivity and graphic editors, as well as cloud services and digital news suppliers, may all use this kind of monetization.
Sponsorship
You will be able to build a profitable relationship with both parties if you can find a business that caters to a similar audience and has a sufficient marketing budget. It will provide sponsorship for your app, and you will advertise its products and services in exchange.
Crowdfunding
If you do not want users to make payments or if you cannot attract a large enough audience to effectively market adverts, the use of crowdsourcing as a method to raise money for app development may be an option. You may find support via well-known crowdfunding sites such as Indiegogo, Kickstarter, Fundable, and GoFundMe, or you can attempt to obtain financing among friends, family, or on social media.
Email marketing
This is an older strategy that involves collecting user emails and sending out marketing materials to increase subscribers’ interest in a product or service. App developers who have successfully established connections with their target audience are prime candidates for the email marketing technique.
App merchandise
Although the digital world rules the present, we all reside in the real world. Selling items and branded stuff is an excellent business stategy for this exact reason. However, to make a profit, you will need to raise your brand’s awareness and recruit many brand ambassadors who will spread the word about how much they like using your app.
Transaction fees
How can one generate money from free applications if they do not have advertisements and do not provide merchandise, services, or additional features? Let’s say you own a business that processes online transactions by enabling customers to purchase and sell goods and money. Increasing the overall price by a few cents won’t be noticeable to the customer, but it might be a lucrative opportunity for you to generate more money.
With our considerable expertise in the mobile app industry, our team can assist you throughout the development process. Do not go into the vast world of mobile apps alone. Take a consultant from Orangesoft along with you!