What are the different business models for mobile app development?

If you want to develop a profitable application, it is not enough to know the available revenue streams. We want something like a monetization plan. Suffice it to say: I’ll pay the customer for using this feature, or I’ll give ads, that’s all. If your app to be successful you should have a well-defined plan.

Depending on this problem, we need to find a solution. Fortunately, we do not have to rediscover the cycle. Many other businesses have the same situation and fortunately, many solutions work. These solutions are called business models. So many android application development company in San Francisco try to implement the best business models for app development

Here are some of the best business models for mobile app development.

Sponsorship (promotional announcement)

Of all the app business models discussed in this post, sponsorship is probably the newest entry into the mobile world. Sponsorship involves partnerships with advertisers who reward your customers for completing certain actions in the app. In this model, brands and agencies have to pay as part of the incentive system. Earn money by taking a share of the revenue from your app redeemed rewards. This way, you can add ads to your app that enhances your app’s ability to engage users.

Run Keeper banner ads.

RunKeeper generally prefers promotional ads to motivate the customers and track their running activity This strategy allows users to monetize with their app without compromising the user app experience with Run Keeper banner ads.

Freemium

Users do not have to pay anything for the freemium business model for Android applications. Optional in-app purchases for installing the app and for premium features, additional content, or digital goods are free of charge.

This basic approach is easy to understand, where you need to provide a functional, basic, and completely free version of your product or service to all customers. It convinces prospective customers to become regular customers after a certain period of time by delivering a premium, sophisticated, feature-rich version at a reasonable price.

Recommend: How much does it cost to develop an online shopping app

Payment Downloads

Don’t even think about it. In the opinion of industry experts, it is one of the clumsy models. Honestly, consumers do not like apps that want money in advance. But even then there are a large number of such apps and it is also seasoned and known app developers use this model. Games and utility apps more or less fall into this category. Some big games are already using this model and making a lot of money from it. But these games already have a good reputation in the market and have a huge portfolio of the most popular games to boast about.

Brand:

This model is widely used by companies. For example, the purpose is to gain a reputation for enhancing the brand image. Therefore, access and use of the application are completely free.

Service component:

Most companies choose this type of business first. It is used for applications as part of a more comprehensive service that provides optimization and assistance to users. It is optional and free, hence high returns for the company.

Advertising:

The application is completely free to download and use, but the return on investment is recouped by inserting the ad in the application.

In-app purchases:

This model application is used in conjunction with free downloads, adding the option to purchase specific features, virtual goods, disabled advertising, digital content, etc. Return on investment can be obtained by providing related services. Generally, Gaming applications use this method for app promotions.

Data monetization

Selling customer data may initially seem nice and ethical but in reality, it is a legal way to make money. In the end, you do not share any personal information — all data is fraudulent. If your app collects valuable information for research companies, marketers, product owners, or other third parties, you can consider data monetization as a source of revenue.

In general, this may be information about users’ devices, network type, location, IP address, etc. However, users should be aware that their data may be transmitted to third parties, so it is important that this information be made public in the documentation, such as Privacy Policy and Terms of Service.

Low Price:

Its main purpose is to sell many downloads at a reduced price, usually at a fixed price of € 0.99. However, the return on this is long-lasting and there is always the risk of not getting anything back.

Conclusion:

In this way, you can be able to adopt any business model to your business. If you have any business model and idea and looking for app development. You can contact FuGenX Technologies which is an award-winning ios app development company in San Francisco that can build award-winning mobile applications for business