Research suggests that 98% of the global revenue from apps, comes from FREE apps, NOT paid ones. So … before you develop your app, you need to consider how to monetise it. Here are some typical ways to generate revenue.
- In-app advertising – raising revenue from advertisers
- Freemium model – offering the basic service free with a pay-to-upgrade facility
- Subscription – initial free offer, then subscription for on-going or full content
- In-app purchases – a popular option for game developers
- Merchandising – selling related products
- Sponsorship – arrangement with relevant partners
- Referral marketing – promoting a third-party via clicks or downloads
- Collecting and selling data – need to consider privacy and ethical issues
- Transaction fee – a fee for every transaction conducting via the app
BEFORE you go too far ensure that you have done market research; checked out the competitors; identified your customers and have validated the commercial potential for your new app.
Need help to get your app developed and commercialised? or help with other ideas for products and services?
INNOVIC is a not for profit organisation established in 1986 to help people with viable new ideas to get them to market. We help with idea evaluations, market research, IP advice, grants, design, prototyping, business planning, branding, licensing, negotiations and more. Zoom and telephone consultations available nationwide. Contact INNOVIC on (03) 8060 3504 or www.innovic.com.au