Every time we use free apps, one question always strikes us how do free apps make money? To answer your questions, we try to clear your doubt about your questions about free apps. In this article, we discussed what strategies free apps to make money from users, and how much they earn annually from free apps. Free apps are used by billions of people around the world instead of paid apps. Most mobile users choose free apps to download from the play store or app store over paid apps.
Hence, to get receive money from a free application it is important to set up income streams. In view of the factual information, the best adaptation strategy in 2017 was the utilization of compensated video advertisements. This is a mutually beneficial methodology for both the application supplier and client, as once the client watches an ad, they get focus and application rewards. Many mobile app development companies try to make long-run and robust free apps for users.
Read the following points carefully to know what strategies they follow to get money from free apps:
1. Free Apps Make Money From Advertisements
Presently, playing ads on the apps for promotions is the easiest and most common way to receive money from free apps. 7 out of 10 are embedded to free apps they make money per click, per install, and per impression or display.
Advertisements include 5 types, here we discuss their different types to know more about their working.
a. Banner Ad
These promotions are put at the top or lower part of the cell phone screen. As a rule, these are less nosy, as users are ready to utilize the portable application ordinarily. Then again, banners have lower commitment rates (CTR- Click Through Rate) and these advertisements are dependent on memorability.
b. Video Ad
A video promotion, enduring 10-30 seconds, is put inside the application where it plays consequently when there are regular stops. A subset of video add class is a compensated video promotion, where purchasers get a few advantages (application money, additional focuses, and so forth) in the wake of watching the video promotion until the end.
c. Native Ad
These advertisements are planned to be normally incorporated into an application. These additional components can be supported substances or recordings used to advance a specific brand or item. Because of their reconciliation, these applications are recognized as disturbing and tedious the least, so it gets more promoted as an adaptation model among application providers.
d. Interstitial Ad
These promotions are full-screen pop-ups displayed in a particular second inside an application. These are normally shown when the application is opened or closed. The client has 2 taps to pick – either close the advertisement or look at the advanced substance.
e. Interactive Ad
Everybody likes rewards and doesn’t want any interruptions. With the assistance of a device set, it is feasible to furnish clients with remunerations for a particular in-application activity or commitment like finishing up a survey, content sharing, and so on. These application rewards can increment application dedication and client commitment. The benefit from this strategy is acquired by means of in-application monetary forms and sponsorships.
2. Referral Marketing
Reference promotion is firmly associated with the past model of in-application commercial to adapt your application. There is even a different heading in showcasing – offshoot promoting. Educational substance about an offshoot organization is put in the application and, in view of snaps and introduces, you get rewards. These rewards depend on the cost-per-action (CPA) model or income share.
3. In-App Purchase
In-application buying is an exceptionally famous technique utilized in the freemium application model. It is feasible to sell virtual or actual things, offer premium usefulness or rewards, block promotions, or open new application content. This multitude of exchanges is overseen by the application store and the proprietor gets a commission from each exchange.
The in-app purchase has three categories –
- Consumable – these things are utilized once, mostly in portable mobile games. Example: Digital Currencies, Health Points.
- Non-consumable – these highlights are utilized permanently. Example: ad blocking, extension in-app functionality.
- Subscription – This permits one to open extra happiness and highlights for a specific measure of time. Example: month-to-month or yearly subscription membership
4. Subscription Model
As referenced, the membership model sets up income streams from the week after week, month to month, or yearly charges for a particular help given by the free application. This model is generally utilized in cloud administrations, sound and video content providers (Spotify, Google Music), and advanced news entrances. Consumers get admittance to the substance as per their picked membership plan.
5. Sponsorship Model
Getting sponsorship is a beneficial model to follow to bring in cash from a free application. This model is generally accessible for created applications that as of now have ordinary clients. The most advantages can be acquired by applications with a particular market specialty. Subsequently, you might contact supports in a similar industry to coordinate their image with promotions, and data in the application, or adjust the application plan to the brand.
6. Crowdfunding Model
According to Wikipedia, This one is genuinely a better approach to adapting an application for nothing. Custom programming developers might utilize the accompanying stages to raise assets for application improvement and showcasing needs: Kickstarter, Indiegogo, CrowdFunder, and AppsFunder.
So. these are some basic fundamentals that were used by free apps to receive money from the users.