In this day and age - it is not a big deal to develop an app. Any fool
can do that. But no fool can make it beneficial for the business. Money is the
sticking point of the moment. Everybody wants some. You know how it goes - “it
is all about the money”. Any company that gets into application development
wants to some form of a profit out of it. This may be represented in
reputational gain as well as monetary profit.
However, it is not as simple as one might think. There are many things you need to keep in mind and there is a lot of trickery that can work miracles if applied correctly. It is important to know what you need to do in order to make the most of it.
But here’s a thing - you don’t really need to make a commercial application in order to make profit. You can do it with free apps and it can be even more beneficial for your business.
If done right - free apps can help to lay the groundwork for bigger accomplishments of your company.
How do free apps make money? Here’s a list of five things you need to know.1 Know your market segment first
No matter how hard you try - your application will do null and void if you haven’t made your homework first. Choice of right market segment is important.
Application development is like a minefield - one wrong move and you are done. If you’re lucky - you may be merely busted inside out but that is quite bad anyway.
Because of that it is reasonable to perform thorough through and through market research before taking on the actual development of an application. In other words - act smart.
Here’s what you need to know first and foremost:
●What is the market segment?
●Who are potential users? What are their needs and demands?
●What you have to offer?
●What competitors have to offer? How you can counter it?
●What are your contingencies? (that is “just it case” thing but it is better to think it through beforehand)2 Incite interest from the very start
With a knowledge of the market locked and loaded - you need to use it to make the most interesting presentation of the product possible. You need to incite the interest of the user from the very start. It must be a deadshot - everything you need to know about an application in an intriguing form that moves towards installing an application and trying it out on your own.
There are several things you need to do:
○Needs to be a snappy, catchy punch;
○Needs to be connected with the purpose of an application.
○Must be written in engaging manner;
○Must explain the purpose of an app in plain words;
○Show benefits and advantages of your product in contrast with competitors;
○Must give a ride for imagination.
○Include screenshots of every element of an app - full cycle of navigation. This will show what it is all about. Helps user to consider whether or not it is worth a try;
○Add video demonstration of application in action - that will provide more powerful insight.
Great description of application is the foundation of future monetization.3 Freemium Model
One of the most effective monetization strategies from free apps is to provide additional services and functions through freemium model. Such expansion of user experience can be extremely effective in solidifying user’s brand loyalty.
How to pull this off? Your app has basic set of functions. You present it as a legitimate product. It does the job just fine.
However, in the same time you point out that it is barebones representation of the concept. You can tease that there is an option of updating an app to a bigger, better version with additional features.
There are several options:
●You can provide a trial of premium version in order to give a taste of possibilities;
●You can open up various additional features at random and brag about it;● You can grant limited access for some in-app milestones (used for a week in a row or something like that);
Every mentioned approach is effective in its own way.4 Try sponsorship and In-app adverts
With audience and presentation ready for action - the next step in making your free app a profitable affair is securing sponsorship and providing in-app space for advertisements. Both are closely connected and provide loose web of various products that cover certain needs of the user.
Generally, monetization occurs through three factors:
●Impressions / clicks
●Installation of advertised products
It is important to note that it is not particularly useful if your application is not well-exposed and lacking audience. Before going big you need to build up a reputation of a quality provider. With that in place, adding advertisements into your application will be a reasonable expansion of interest.
Keep in mind that in order to make ads work to its maximum potential - they must be natural extension of user experience. A sort of “you might also like” or “try this” or “hey, discover this”. It can be either pop-up huzzah or push notification or simply a banner in the corner. It is important to avoid overbearing effect with them. Otherwise it will play against you.In conclusion
These are four main things you need to know about free applications. While there are many more things to know about them - these are the essentials. They can help you build a better tomorrow for your company.