Anyone can dream of an idea but an idea is nothing unless it gets executed. Technology and its innovations have proved the statement very well. Updating technology was just an idea for some of them but there were some bright and sharp minds that executed the same concept. Origin of smartphones from traditional mobile phones with keypad was the leading idea that got benefitted after its execution. In today’s time, it is impossible to imagine life without smartphones. The journey of a smartphone is very interesting as it becomes smaller and thinner with new features added when every new model gets developed. The field is always going to be in the state of innovation along with the mobile app development field that accompanies the development of smartphones.
After the origin of smartphones, the mobile app development industry grew immensely and has no end in sight. There were few developers who had that imagination and knew that the following industry has a huge future. But now the scenario has changed, there are a lot of developers that came to know the potential opportunity that this industry offers and its future. With the growth of mobile device or smartphones market, app development industry will also gain a sharp rise in the future because not a single person is seen without a smartphone today. Using a smartphone means using one or the other apps in it that makes the life of a person easier.
The following demand for mobile devices and applications increased the competition in the mobile app development industry and it has become a perfectly competitive market. Therefore the companies need to find different ways through which it can earn profits and sustain in the market. The monetization models through which companies find their way of earning profits are explained below.
Traditional sales is always a marketing strategy common in every industry that companies follow because that helps the companies the most to earn profits. In the mobile app development industry, the case is different in some scenarios. The following strategy would only work if the application is extraordinary and it has the worth to buy. If a paid app on the store is not yet purchased then the users would only be able to see the application features and the preview of it, the screenshots that the admin has inserted and the description of the application. The following details are provided to persuade users to buy the application. However, if the application is not worth then the following details makes it difficult for the users to make up their mind for purchasing the app.
Freemium is a one step ahead model from direct sales. In direct sales, the users will not get any features for free but in freemium, they will get a benefit of basic features. Freemium means a combination of free and premium. The model provides the basic features at no cost but the advanced features are provided by the applications at some subscription or a fee. Although people paying for the applications are found less still the model worked.
This model goes a step backward than freemium. In freemium users paid the fees to access only the advanced information but in subscription, users have to pay to access all the information. The following model proves to be profitable for every owner because it gives long-term revenue to the owner if the owner keeps customer loyalty high. Most of the apps ask for the subscription because every business needs to earn to sustain in the market.
In-app purchase is a common strategy used by owners to earn. Apps that support games, online ordering or various product catalogs, monetization through in-app is very easy from these kinds of apps. For the following kinds of apps, a fee or payment is asked for every item that gets sold. The application is designed that way that it compels the user to purchase from it and make the payment. Therefore, along with the subscription strategy, this model also proves beneficial for owners of the applications.
Crowdfunding is the strategy where owners do not earn from the users. Then the question arises from where does the owner earn? The owners earn from the donations in that case. Crowdfunding is the practice where developers get the funding of a project by raising small or trivial amounts of funds from a large number of people, mainly via the internet. Some of the interesting projects by the owners attract a higher amount of funding than expected or requested for whereas some of the projects having a mediocre idea do not even attract the desired amount of money.
The above list can surely be a profitable one to the owners but it is not exhaustive. There are lot many other strategies that people are not aware of and is being used by many mobile app development companies for earning. Moreover, mentioning two operating systems namely Android and iOS, the company needing an Android app will have to hire android developer and same works with the iOS platform. Coming back to the above strategies, direct sales is a traditional strategy which is used since ages by millions of them. Freemium, subscription and in-app purchasing are models that became popular recently and again are widely used. Crowdfunding is a practice that is still new for the companies to execute but will not take much time to be popular.