It’s simply a greater number of existing businesses
starting to use apps as a channel to reach potential customers. Examining which
strategies carry the most risk and which have the greatest chances of success-
here are the few successful models for your next app.
4 Trending Models to Build a Business, Not Just an App
App store payments
and advertisers
One of the popular revenue models is relying on directly
monetising an app: in-app advertising, paid download, in-app purchases and
freemium. Although easy to implement, together they are the four most risky
models with the lowest chances of profit. Even on iOS, the paid download market
appears to be contracting fairly rapidly in the face of free app alternatives
with in-app purchases.
Online Shopping
Ecommerce is the most successful app development model in
terms of making comfortable profits and have by far the lowest risk of making a
loss. There are some startups with mobile first commerce apps though and more
than 50% of developers charge more to building apps when compared to others.
Online services
The next most popular and also relatively low risk and
successful model is Subscriptions. However, implementing subscription based
services is more complex than selling apps or virtual goods. Another
interesting possibility is to resell generic cloud services by adding value on
top as in like re-selling storage by adding document collaboration or photo
management features on top.
Royalties or licensing
This strategy though doesn’t have much lower risk than
relying on the app stores or ads, it is inherently a higher risk strategy with
bigger rewards for success. One BIG downside is that the number of direct
customers in the target market is less and requires a great connections/ a lot
of funding/ both.
Before you start-off, create a business plan to have a path
set beyond the launch of the app. Think about your 30, 60, 90 day plan after
the app has launched.
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