More than 80% apps are free yet the app stores are worth billions of dollars. Why so? The fact of the matter is that 98% of the revenue comes from these free apps.
If you sell a product or service then that would be the primary source of revenue for your app. Example, if you have an ecommerce app, selling products and making commission would be the major source of revenue.
According to Statista, global mobile app revenue amounted to over 693 billion US dollars in 2021.
Let’s take a look into the most popular and proven ways for making money.
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Conventional ways of generating revenue from mobile apps
Here is the list of conventional ways for generating revenue from mobile apps.
Above given are popular and proven ways of getting revenue, however, each and every model is different and you may not get the same results for all. Spend some time until you find the best source of revenue for your app.
If we talk about games, hyper casual games started taking off when flappy birds got a hit. People thought of building the same simple games but the competition was tough and getting noticed was really hard. Monetization techniques are difficult to implement since these games are easy to make and user attention is short and people don’t make much money per user.
Unconventional ways of generating revenue from mobile apps
Data gathering and selling
Selling user data seems unethical but all the data is impersonated and you are not sharing any sensitive information. If your app is collecting data which could be of use for research companies, marketers, or for third parties, you can think of data monetization as a revenue stream.
Consumer segmentation based on data helps in the buying process. Such data is also helpful in distinguishing consumer voices and making them reach out to companies.
Funded monetization aka Crowdfunding
Again, you can utilize any crowdfunding platform for revenue generation such as Kickstarter or similar platforms. This is just another option for getting some extra money.
In this method, companies or startups share their ideas on platforms like Kickstarters, Patreon, Crowd Supply, Indiegogo etc. for development and promotion of your app.
According to stats (Mobile Growth Stack), non-gaming mobile apps usually get more funding on crowdfunding platforms.
Selling physical products
Many ecommerce and startup businesses have started using this method for selling products like t-shirts, mobile cases, toys etc. through developed apps.
One such classic example is of Angry Birds, they increased their revenue by selling branded products. Through this free gaming app, Rovio company sold approx 1 million branded shirts, backpacks and stickers per month.
Just like affiliate marketing, you can use Instagram influencers as affiliates for your product/ app.
Here is a tip:
Do not just look into the Instagram influencer’s followers, rather look into the engagement on his posts.
Anyone can buy followers, so the real game is the engagement level.
Get at least 10 influencer profiles from Instagram and DM them. Some of them may not reply and some of them may be too expensive.
What should I type in my DM message?
I was just wondering how much does it cost to make a swipe up story for 14-24 hrs?
You can use Canva.com for design. In this tool, you can select Instagram swipe up story and you can design. You provide design in case your influencer asks for.
With so many free apps in the app stores, it is not easy to make users pay for the app. You have seen that paid apps are offered by popular brands. A new startup app which hasn’t proven value may fail if they rely on paid app revenue models.
Conventional ways are known and are still helpful in getting revenue. However, if you combine them with non-conventional ways, chances of getting revenue improve. It may take time to find the best source for revenue which works best for you.
Phaedra Solutions has an extensive experience in building high performing and feature packed mobile apps for Android and iOS. We also develop cross-platform applications, no matter the platform or the device you want an app for, PS delivers scalable, secure and sustainable apps.