After you validate your app idea and identify your target market and list the key features that will differentiate it in the marketplace you’ll next want to determine what business model to use. Ask yourself…
What monetization strategy will you use? This needs to be decided up front as it has to be designed into the app experience.
You can make money from your app idea in several ways.
You can create a paid app
Paid apps are losing ground these days. Unless you offer a compelling free trial that gets users hooked so that a large percentage of them convert you may want to consider another approach.
Creating a free app with in-app advertisements or sponsorships that generate income can be lucrative for apps with a large user base.
Offering apps with auto-renewing subscriptions is another option.
This is good for apps that are updated with valuable content on a regular basis.
And, there’s the freemium model.
This allows users to download and use the basic app for free and opt to upgrade via an in-app-purchase for premium features.
As you can see there are a lot of options for you to consider before designing and building your app.
Take a look at some of your favorite apps or download some of the most profitable apps in the app store and analyze how they are monetized.
Once you’ve decided how you will monetize your app you’ll need to put together a design concept.
If you’d like to learn step-by-step how to create an app check out our App Idea To Reality Online Course.
Wow, I always wondered how in the world people made money from free apps. Now I know! There are some interesting tactics. I can definitely see the wisdom, after reading this article, in planning monetization before you build or even design the app! Great advice