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Business Model for Android Application Development

Categories : Android, Article

Android application development is a booming and ever evolving field. If you have an excellent application idea, also understand that it is going to be an investment for your firm. Whenever you talk about an “investment” it’s but obvious implies that you are expecting a return on it. For this very purpose, you need to have an application revenue model or an app business model ready. Make your app a revenue generator rather than a liability for your business.
Here are some of the business models you can consider:

Android Business Apps development

Paid Application Downloads

This business model includes a payment before the user can actually download the application. There is absolutely no option for “trial”. User needs to make a decision for download just by looking at the description and screenshots that are submitted to the app store. This is a method which can give you quick returns. But maintaining customer satisfaction in this case is tough. Once a user has paid and downloaded your application, and it does not deliver as per customer’s expectations, it’s a sure shot decline in a “happy customer” experience. This business model is therefore seeing a steady decline.

In-App Purchases

This business model is most commonly used in applications that are initially free to download. They however have a payment scheme for advanced features etc. Here are the most common contexts – unlock some advanced features, eliminate pop ups, download some needed digital content, or for some virtual goods. The basic app is free, but for advanced features or goodies in some games, user needs to pay. This business model is advantageous as users get to “try” the app before they make any payment of any kind. This business model has seen a fair amount of success.

Advertising

Another very profitable business model for Android Apps is a Pay Per Click Model or Cost Per Mille (CPM) model. This model is beneficial as your app gets wide exposure via popular ad networks and you need to pay only for what you benefit from. If your ad is clicked on or is shown a thousand times. This business model for app monetization has seen a rise in recent times. You can learn from here How to monetize your App ?.

Affiliate Programs

Affiliate programs are another sure means of app monetization. Your app will see the impact. If not directly, your application can generate revenues via leads or sales commissions. For example, if you have a travel app for android, you can create an affiliate program that gives you a commission on every booking that is done via the usage of your app.

Brand building

Brand building is important. If you want to see a successful application, increase it’s number of downloads – users etc. That’s the only way to spread awareness and build a brand for your firm. Big brands generate big revenues over time. That’s a fact.

Other than these monetization models, you can also earn revenue by offering additional services with the application like, an app that provides free legal information can be a gateway to your firm’s legal services which are appropriately priced. Some apps could be a part of the services your firm offers. Options are plenty.

In conclusion, it’s not just about creating amazing android apps, it’s about selecting the right approach to be able to monetize it.

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