When making a plan to make profits from a mobile app, you’re encouraged to create a successful, appealing business model. To create an excellent business model, top app developers in Canada suggest first recognizing every aspect related to app development processes like feasibility reports, market trends, customer value proportion, and also finding out how much the clients are ready to pay for the service.
When you create a mobile app, you have different purposes and objectives in your mind. While you intend to attain all of them, you may be looking to earn a rewarding revenue stream as well. And if you are an app development company in Canada, this calls for you to know the different business models that can let your app help you earn money:
1. In-App Purchases
With in-app purchases, you ask the users to buy what you offer from inside the app. You let them download the app for free as well as use it without any paid obligations. However, the app contains events and spots that include products, proposed and displayed to be sold. An in-app purchase may range from the extra chips or coins you can purchase in a game to a book displayed on an educational app. This model is good if it does not jam a user’s way to use the value from an application and does not interfere with their time.
With big players like Amazon, the eCommerce apps now dominate the top position among the monetization strategies. Either you can sell others' physical collections or sell your physical collection. This working method is adopted by lots of eCommerce platforms. eCommerce model has become more and more popular over time. So, you are looking to earn revenue through mobile apps, then this is one of the perfect options for you.
3. Paid Model
The paid model refers to the pay and receives model to monetize your app that asks for money directly to use/access the app. If you wish to go with this model, you should position the app to be noticed by the users. It should also be nicely communicated and presented on the Play Store and App Store page using an attractive introduction, complete details, well-presented screenshots, and more. You can also count on good ratings and reviews from users to get favorable responses. This model is mainly based on how well you grab the fantasies of your users, how you are better than your competitors, and your marketing ability.
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Users do not need to pay anything when it comes to the Freemium business model. If you want to install the mobile app or in-app purchase for digital goods, additional content, and premium features, no additional cost is needed. The approach of this model is pretty simple. You just have to offer your users a basic, free, and functional version of your service or product. It will help convince potential customers to turn into loyal customers after some time by offering them an advanced, premium, and feature-filled version at a cost.
Sponsorship is a relatively new business model. Under this, companies and brands will have to pay to become its part. If you choose to go with this model, the app will let users redeem revenues, recognitions, and awards by taking part in certain surveys or activities carried by different advertisers. You will have to partner with the advertisers to provide rewards and incentives for completing or attaining certain in-app actions. The companies involved in placing ads or promotions on the app will add to your revenues stream and assist you to monetize your app.
6. SaaS/Subscription Model
This is another highly profitable business model where you need to target individuals who love to use bigger screen phones or tablets. Newsletter apps, tv-series app, book apps, songs apps, and more can use this model. You can either charge annually or monthly in this model. If you’re looking to create your content, it can be quite time-consuming and difficult. So, you can use third-party content but that will offer you a low-profit margin. Moreover, you may face certain difficulties while getting third-party content when it comes to closing license deals and more. Therefore, you can crowdsource free content in a similar way to YouTube.
It is like the Freemium model that focuses mainly on content. The Paywalls model lets users access some content for free to a certain level and then prompts the users for signup and requests for payments to get access to full content. It is most beneficial for services looking to provide live data. It is an efficient medium to increase monetization but it may take a little more time and you need to keep the quality consistent. If you can deliver original and well-researched content that is of high quality, then you can turn your leads into permanent customers with Paywalls.
8. Video Marketing
Video ads play an important role in drawing clients as people can relate directly to what they see. With this business model, you can display more than your app’s ads. You may offer users an attractive, short video of your offerings. Moreover, app development Canada can collaborate with the advertising companies to assist in the display and production of such short video advertisements on their mobile apps that will assist create revenue.
The above-mentioned business model ideas are the most trusted and followed ones. Being an app development company, you can also plan to have a strategic combination of these models and use the ideal technique to assist you to make the best way to generate revenues from the mobile app. Many app development agencies have used all of them to drive revenue and ROI. You can select one that fits well in your preference.