Thousands of apps are present in any play store majority of these being free apps, now the major question that may come to your mind is:
How Do Free Apps Make Money?
Paid premiums and advertisement popping up every now on these apps are the only answer one could think of at the first instance in this respect. The other aspects which equally dominate this money making process through free apps are discuss further.
In-app purchases are the most well known way of money making over free apps. This process is generally prevalent in the gaming apps where users are lured with attractive updates in making in-app purchases. Those users who make in-app purchases are given extra advantages, access to certain rewards along with certain added powers in their virtual in-app gaming scene (in case of a gaming app).
In-app advertising is another answer to How do free apps make money. This is basically done in the advertising networks where advertisements of various sizes, positions and placements appear in the mobile app screen. The money you earn from app revenue is achieved through a traditional procedure of the advertisement world.
Every Advertisement One Clicks on or Views Are of a Different Pay Scale
The rates of advertisement vary country wise and format wise as well, such as the ads with videos attain more revenue than the usual ones. Another area of focus is the growth of the number of users .The user base should have an increased growth graph, so that the mere percentage of user who make an in- app purchase or click on an in-app advertisement yield you considerable revenue.
One should know the growth metrics of their app as compared to other similar apps. They should know the lifetime value of their customer and the free to paid conversion rate of their customers. The app developer should be very clear about the purpose of their app and not heap up the app with lots and lots of advertisement, the free features should be as valuable as the paid rewards so that the users have a constant interest in the app.
The app-makers also develop additional entertaining features inside their app so that users don’t get bored. One aspect that should be kept in mind forever is that the users must never face a dead end to the free version of the app. The in app purchase must be like an incentive.
They should also formulate the marketing strategy of the app wisely. They must also go ahead and connect with the user over the review section of your app, take feedbacks and work on them suitably. This will increase the credibility of the app and users are compelled to make in-app purchase.
Advertisements are one great tool to monetize the actions. This can be done by making videos of the later stage of the game so that users get a view of what they are about to purchase. The video must be alluring and not informative at all.