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Six smart revenue models for mobile apps
Having your own app developed can be very profitable. The market for custom mobile apps is growing strongly every year. Both companies and consumers use dozens of apps every day and spend an average of 3 hours per day on apps.
One of the most used app business models is the freemium revenue model. The advantage of this revenue model is that users can first test and experience the application for free. If they like the app, users often make a purchase. This revenue model is called 'freemium' because the app is free to download and the extra features are 'pre-mium'. A success story of the freemium revenue model is Examenoverzicht. This app prepares students for their exams. The app is free to download. Students get a preview of the summaries. They pay a small amount for full summaries.
Also BabyManager has a clear freemium revenue model. This app has been developed to support future and new parents with information during this special period. The BabyManager Basic subscription is completely free and already offers a lot of useful information for the user. With BabyManager+ Informative and BabyManager+ Advice they get more functionalities for a small amount per month.
Everyone knows this revenue model from websites where you see advertisements for shoes that you viewed online yesterday. With this revenue model, the app is offered for free, but there are display ads in the app. Money is made when people click on the ads and perform certain actions.
This business model works well in combination with a paid version of the same app. Users can download the free app and if they do not want to see ads, they simply purchase the paid version.
We guide our customers from concept to long after release. From applications that make aviation a lot more sustainable to a video On Demand streaming service.
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The end user is central to the development of an app. We therefore always focus on the added value that the app offers the end user.
We develop apps with the latest techniques and trends. From blockchain apps to streaming services. With React Native to Swift and from PWA to native applications.
No downtime, bugs are solved with priority and your app continues to do what it should do. Even after operating system update.
Do you want to develop an app for a specific industry? There is a good chance that other parties within the same industry are also interested in your solution. In this case are white label apps very suitable. With this revenue model you have an app developed that can easily be transformed for different applications. This is a win-win situation for you and other parties because you only have to develop and maintain one application. It is advantageous for customers because they do not bear the full costs of an app.
One of the success stories of a white label app is the streaming apps from DutchChannels that we have developed. By first developing a 'basic' app, we could more easily develop multiple apps for DutchChannels.
The subscription economy has become an integral part of our daily lives. A common revenue model for earning money with apps is the subscription form. Everyone has a Spotify, Netflix or Apple Music subscription. A subscription form can be useful for consumers and companies, because it can often be canceled monthly and the investment is small. On the other hand, it also gives the client and developer more freedom to develop the app when money comes in monthly. Business apps with a subscription model are usually communication apps or applications that make administration easier, such as a mileage registration app. A recent streaming app developed by us DutchChannels, also uses this revenue model.
It may sound a bit strange, but free apps can definitely make you money. Think of the Nike Running App. This app tracks your running performance and coaches you while running. This app has been specially developed to increase brand awareness and identification with the Nike brand. It is a form of marketing that binds the user to Nike and persuades them to buy more products. This way, Nike can still earn money with the app. Shopping apps are often also free. There, the margin is often on the products you sell. FREEON TOUR is an app offered free of charge by Hymer. They want to serve their customers optimally and offer the best service.
Referral apps are usually free for users, but not for affiliates. A good example of an app with the referral revenue model is an app that sells airline tickets from other websites. They often receive part of the margin of the ticket price or are paid per referral. This way of make money with apps is different from advertisements in an app because the service the app provides is a comparison of airline tickets. Knaek is a student discount app which uses the revenue model 'referral'.
