Saturday, August 02, 2014

Business models of Mobile Apps

- SELLING THE USERS

Collecting user data to resell them to advertising companies. For example, WhatsApp sold its user at a higher price than Instagram.


- FREE, BUT WITH ADS

Relying on ads sales means to make a bet on the fact that you’ll reach millions of users in a short amount of time. In this case it is crucial to be able to offer something really unique with high quality standards and moderate but targeted advertising.


- FREEMIUM COMPLEXITY

Offering basic service and asking for money for premium services. A classic example is Dropbox that, besides having more than 200 Million users, has a conversion ratio, to paying service, between 4% and 5%.


- PAY AND ENJOY

 Selling apps is a difficult mission but it can also be very productive for a small team. According to Gartner data, 90% of paid apps do not reach 500 daily download and generates less than 1.250 Dollars per day. 


- AN INNOVATIVE MODEL 

We could call it simply a ‘pay later model’: if you want to continue to use the app you must pay. If you have already been using the app for one year you’ll probably do it.  


Source) https://www.workingcapital.telecomitalia.it/en/2014/03/mobile-apps-which-business-model-is-best/

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