The mobile app industry has seen huge growth in the last couple of years. More than 15Lac apps are submitted to the App Store and Play Store monthly. Businesses worldwide have recognized the power that mobile apps provide. You could be a service provider based in India or a manufacturer in Germany, an entrepreneur in Europe, or a software developer in the USA. Having a mobile app provides you with multiple opportunities to open your business to the world. It also reveals the extensive opportunity to earn money from your app.
Did you know that only about 20% of the apps successfully make money?
The key to the successful monetization of your app is finding the balance between sustainability and profitability. So the next logical question is How to achieve that balance between sustainability and profitability? and How to design a perfect revenue model for your mobile app? To find answers above questions we first need to understand what type of app you need, what is the purpose of your app and your what type of audience will your app target.
Below are some categories of apps that are highly used by mobile app users.
- Social media apps
- eLearning apps
- Job apps
- eCommerce apps
- On-demand services apps
- Gaming apps
Out of the above apps, three main apps are on the rise since the Covid-19 crisis, eLearning apps, eCommerce apps, and On-demand services apps. Let’s understand how these apps are making money in today’s market.
eLearning Apps:
Some of the monetization strategies adapted by eLearning apps are
- Subscription model – Many e-learning apps offer paid subscriptions that grant users access to premium content or additional features.
- Freemium model – Some e-learning apps offer basic features for free, but charge for access to advanced features or premium content.
- In-app purchases – E-learning apps can also generate revenue by offering in-app purchases, such as the ability to purchase additional courses or materials.
- Advertising – Some e-learning apps incorporate advertisements to generate revenue. This can be done through display ads, sponsorships, or partnerships with other businesses.
- Partnerships and collaborations – E-learning apps can also earn revenue through partnerships and collaborations with other businesses. For example, an e-learning app may partner with a certification organization to offer certification exams to its users.
Hurix has delivered multiple eLearning apps and based on our experience we would recommend incorporating the first three strategies into your eLearning app. However, ultimately the strategy will depend on your business model and preference.
eCommerce Apps:
eCommerce apps earn money mostly through the sale done via the app, below are some strategies used by eCommerce businesses to earn money from their mobile apps.
- Commission on sales: One of the primary ways that e-commerce apps earn revenue is by taking a percentage of sales made through their platform. For example, a marketplace app like Amazon or Flipkart charges a commission on each sale made through their platform.
- Subscription fees: Some e-commerce apps offer subscription plans that provide additional features or benefits to users. For example, Amazon Prime offers a premium subscription that provides exclusive access to movies, songs, and 1-day delivery with additional discount offers.
- Advertising: E-commerce apps can also generate revenue through advertising. This can be done through display ads, sponsorships, or partnerships with other businesses.
Above are the most commonly used monetization strategies, you can use any one or combination of these to create a stable revenue model for your business.
On-demand services Apps:
Just like eCommerce On demand service apps provide door delivery services like cleaning, plumbing services, electrical and salon services. The most well-known example of such an app is Urban Clap, apps like these earn by charging a commission for the services provided and through similar models as that of eCommerce Apps.
Conclusion:
To finalize a monetization strategy it is important to understand the purpose of your app and the target audience. Many times it can be difficult to choose a monetization strategy, this is where Hurix’s expertise comes into the picture. We help our clients in creating a fine and stable revenue model and deliver it through a user-friendly mobile app.
