A mobile application is a tool that, with proper promotion, can contribute to the rapid development of a business. Of course, before embarking on the development of an application, it is very important to define the business goals and the strategy for future scalability.
Today, there are countless successful examples where a mobile application is the central function of a business. Let's consider a few businesses that are represented exclusively by a mobile application:
- Uber. The application provides convenient taxi ordering. The key factor that ensures the business's colossal success is the convenience of the application. Users can find a free taxi with just a few clicks, even in traffic jams or complex road conditions, and conveniently pay for the ride. The application has a presence in more than 700 countries worldwide.
- Headspace. It offers users access to meditation practices and other resources to support mental health. Today, this application is available in more than 190 countries, and currently has more than 70 million users. The business model that ensures such popularity is a subscription model, where users pay to access the application's features for a certain period of time and can choose to renew their subscription.
- Duolingo. An application for learning foreign languages, which is available in more than 30 languages and already has more than 300 million users. Duolingo offers both free and paid services. Revenue is generated through paid features and advertising.
- Glovo. The application allows users to place orders and pay for them. Today, the application operates in more than 20 countries, with more than 10 million users worldwide.
We have analyzed well-known examples of businesses that are exclusively represented by a mobile application. However, even if a business already exists, implementing an application can be beneficial as it:
- Increases customer loyalty, as the application enables direct and personal interaction, making the service more convenient.
- Optimizes work efficiency, as the application helps automate important processes.
- Boosts sales, as the application gathers data about potential customers, allowing you to better understand your target audience with whom you are actually in touch with the customer, and use various incentives.
- Enhances the company's image.
Applications for shops and services that provide sales/purchase services for clothing, shoes, cosmetics and hygiene products, food products, food delivery, and taxis are the most popular.
However, this is not an exhaustive list, it is important to analyze a combination of factors, such as how users access the site using a computer or a phone, and make a decision about the feasibility of developing an application.
Ways to Monetize Mobile Apps
Below, we'll explore ways to monetize your app without tying it to the world of e-commerce.
Advertising
Let's start with one of the most common ways to monetize mobile apps. It involves partnering with advertising partners who pay to display ads within the app. Ads can be placed in various formats, such as banners, pop-up windows, or entire video clips. It's important to note that the app itself can remain free for users.
Pay to Download
This is a fairly predictable and user-friendly method. App Store and Google Play allow app owners to offer paid products directly on the platform. This is a popular method, as each download brings in revenue. However, it's worth noting that this method should not be combined with others; it should stand alone.
Subscription Model
This monetization method involves users paying for access to the app for a certain period of time, with payment collected at regular intervals (e.g. once a month). For example, the subscription model is relevant for language-learning apps, fitness apps, or any editors where access may be paid.
In-App Purchases
This is a monetization method where the app includes a separate virtual currency that users can purchase with real money. This method is familiar to users who play online games.
Freemium
This is a natural monetization model. Previously, this format was called Shareware - a conditionally free app. The app itself is free, but its functionality is limited. Only a basic set of features can be used for free. To access an expanded list of features, users must create an account and make a payment.
Percentage of Deal
This is a standalone model that involves creating an application to which other participants are added. They interact with clients on favorable terms for them, while the owner of the application receives a percentage of the deal. A bright example is a marketplace. A program is being developed where sellers who generate their own content, promote it, and look for customers are involved. In turn, the platform receives a percentage of sales.
It is quite logical to combine several types of monetization. But it is worth considering which ones are suitable for the chosen niche and can be logically combined with each other.
