How to drive revenue and make money from your mobile app
“How can I make money from my app?” If that’s a question that looms over your head when you decide to go mobile, fear not, you’re not alone. Here are some tips to generate revenue with your app powered by Mobile Roadie:
1) Price Tag – Before your app goes live, you have a decision to make: Will you charge users to download your app or will you make it free for all? The majority of the apps in our App Gallery are free, while the rest (a very small number) are priced around $0.99 or more.
Take for example the Tramlines app: Tramlines, an annual music festival held in Sheffield, England, rolled out their app with a $0.99 price tag. Why? First, the Tramlines team jam-packed the app with exclusive content – including over 900 listings and app-only competitions.” In addition, the Tramlines Festival was completely free to attend, so charging $0.99 for their app made sense rather than charging them upfront.
Take into consideration, however, this fact: 2/3 of the top 100 iPhone apps that generate the most money are free to download and rely on in-app purchases for 100% of their revenue (see chart below). So it may be better to generate revenue from users who are already using your app.
2) In-App Purchases – Users are already engaged in your app and immersed in your brand. What better time to sell than now? You can collect revenue through your app by:
1) Selling music – The Taylor Swift app has generated quite a lot of revenue through in-app music sales.
2) Selling tickets to events & shows – Users cannot only browse through future events & shows you are hosting, they can also purchase tickets. The Spider-Man Turn Off the Dark app has “Buy Tickets” links in every event listing.
3) Selling merchandise – Users will be redirected to your online merchandise store from the app.
3) In-App Promotions
Think coupon codes, limited time offers, and off-site promos using app features. In-app promotions generate traffic to your app, but revenue doesn’t necessarily occur in your app; you’re using your app as a tool to generate revenue elsewhere. Inside the Spider-Man Turn Off the Dark app there is a coupon code for discounted show tickets that users can take advantage of when buying. Off-site promos may include discounts for fans who check in or scan a QR code at an event.
The potential to generate revenue from your app exists. It’s just about finding ways to encourage users to spend money. And although generating revenue is important, just remember, money isn’t the only factor in calculating ROI. With apps, reaching a new market, engaging users, and building a community are valuable, if not more than generating revenue.