Just because it’s easier than ever to create an app, thanks to creation platforms that are offered by companies like BuildFire, doesn’t mean it won’t take a lot of time! Creating an app requires plenty resources and cash. When you put that kind of energy into creating a mobile app, you want to make sure it works hard for your business.
Some businesses make the mistake of assuming it’s best to make users pay for their app upfront. After all, you didn’t put in all the time and effort just to give it away for free!
Although paid apps are an option, you may actually find that a free app will help your business make more money. Here’s why.
Advertising is a great way to make money on your app, whether it’s free or paid. You can reach out to advertisers yourself, or you can attract advertisers to your mobile app.
Just don’t get too excited. It may seem like advertising will save the day on the surface, but the fact is, it isn’t always successful. That’s because only apps that have lots of downloads will benefit from advertising campaigns.
In general, an app needs at least eight million users in order to make an ad campaign work. If you don’t think your app will attract that many users, you should look for other ways to make money on your free app.
In-App Purchases and Upgrades
The great thing about in-app purchases and upgrades is that they work well no matter how many users your app has.
This concept is often referred to as a freemium app because it encourages people to download the app for free, then it provides opportunities for users to download additional features that could include:
- New levels in a game
- Complete access to a feature
- No service limits
- Additional services
Some freemium apps also have success using a subscription model where a payment is automatically deducted from an account each month once an upgrade has been chosen.
Marketing to Your Target Audience
Even if you don’t use advertising or in-app purchases, you may still find a steep increase in your company’s profits. That’s because a mobile app can be a great way to reach your target audience.
When advertising using other avenues, you’re casting your net into a much larger pond than if you advertise what you have to offer in your app. Only a small portion of the population will pay attention to a billboard or radio advertisement. You’re much more likely to get attention by using your app for advertising.
You already know the people who have downloaded your app are interested in what you have to offer. By providing them with a great app experience, they will be more likely to contribute to your business’s bottom line than a random person who happened to see your commercial on TV.
Don’t think free means it won’t make you any money! Follow the tips on this list and a free app can actually increase your business’s bottom line.