The two terms, ‘invest’ and ‘waste’ differ from each other. The former one returns something in lieu of investment, while, in case of the latter, you do not expect to make any profits. App developers need to know whether they are investing their resources or not, and the following business models will help them identify which strategy they should opt for.
1. E-Commerce Applications
Users are making their mind order everything online and as a result, E-Commerce business model is a pioneer today. The current trend proves the success of this model and experts say that this is going to continue. Selling of the inventory is the basic idea behind this model, and the profit is earned in the term of margins. While implementing this model, the back end should be very strong (Flipkart faced many problems due to its back end).
2. Commissioned Applications
Folks interested in contract works should opt for this model. In such applications, the client is charged on an hourly basis by developers. Many a times, a less time-consuming task is completed in the larger interval of time, and this helps the developer to fetch more bucks from the client.
3. Royalty/Licensing Apps
One of the best ways of earning is royalty and developers are making plenty of money through it. Developers make a deal with the mobile companies to facilitate the users with their app by keeping it pre-installed on their device. Now, whenever that pre-installed app is explored by the user, developers earn the royalty (as decided in the deal).
4. In-App Adds
This model does not make sense until your app gets downloaded by millions of users. The advertising companies offers profit in the terms of CPM i.e. Cost Per Million or cost per thousand impression. The rates are as low as $3 CPM, which means that developer will get only $3 for thousand impressions and hence, this model is not useful for apps expecting download in thousands or tens of thousands.
5. Paid Downloads
Gone are the days. Developers thinking to earn through paid download should get out of this idea asap. Generally, games and utility apps fall into this category, but certain third parties provide free download of same apps (cracked versions) and hence, the idea of paid downloads is not so worthy until your app has a good reputation in market.
6. Freemium Model
Using freemium model is a good approach for those developers who want to provide some of the features of the app for free use and believe that their app would attract the users to get the premium version. The majority of applications implement these model and users don’t hesitate to buy the premium version of the app if the app is worthy. This model is a great stuff for those users who do not rely easily on the apps. As they test the free version, it gets easy for them to buy the pro version.
Mindinventory is a premier mobile app development company delivering services across the world. The company is blessed with experienced, talented and creative team of iPhone app developers who put all their skills in building a masterpiece.