Free-vs-Paid-AppsPricing is a difficult task for a mobile app development company. App developers constantly debate whether to launch their apps for free or charge for them. Many opt going free as the number of downloads of apps are huge these days. Going free means you have to depend on ads and Inapp purchases for generating revenue.

There are various factors that decide the earnings an app collects from ads and purchases. We are going to talk about how these factors affect your paid or free app in terms of revenue generated.

1.    Number of users

Whether your app uses Inapp purchases or Inapp ads does not determine the earnings you make. A very small percentage of your app users will contribute towards creating income opportunities. That is why it is necessary to have an active user base so that the small percentage converts into a significant sum.

You may also want to revenue model around your app. Making your app free breaks the user’s first psychological barrier that is price. You should build a strategic revenue model to earn from advertisers and content providers. 1n 2015, the worldwide mobile app revenue amounted to $ 41.1 billion. It is only imperative that this income depends on the number of users of an app.

2.     In­app advertising

In­app advertising can be featured in various forms and placements in a mobile app. It follows the traditional advertising technique to create revenue. The rates differ for click­throughs, format of ads, origin of users and eCPM (earnings per thousand impressions). Ad videos usually pay more than static banner ads.

A professional mobile app development company can provide you the perfect strategy and run successful ad campaigns for you. You will also be able to track the earnings generated from a specific ad.

3.    Positive review equals money

There are many apps that had remained stagnant from their launch. Getting a positive review with good ratings can make your app stand out and provide opportunities of income. A favorable review makes the app trustworthy and credible and prompts increased number of downloads. Seeking positive reviews should be at the top of your agenda. You should always try to provide best user experience, which results in positive review. This is like a cycle where more downloads lead to five star ratings which again translates to higher percentage of downloads.

Useful tips

If making money is your goal, then you should follow some basic requirements to attract advertisements and users. The first is to create a unique and engaging app which users love to spend time on. Then you need to combine various suitable money making techniques along with advertising to build the perfect income strategy. 

It’s important to only display ads at regular intervals to not make app users run away. For instance, in a cricket game, you could have an ad coming up after every over. Or you could have an ad when someone opens the app.

Final Verdict

If you’re looking to develop an app, you can earn a good amount of income with ads. If you’ve a freemium app model, will help you to get a constant source of revenue. The ads that you want to include should be useful to your targeted user base. Nobody likes interrupting ads, and too much of it may force a user to uninstall the app. The key is to choose ads that go with the theme of your app. For example, if you have a gardening app, you should put ads for gardening tools and related content. Your advertisement campaign will bring no result if the ads are of automobile parts.

Ritesh-PatilAuthor's Bio: Ritesh Patil is the co-founder of Mobisoft Infotech that helps startups and enterprises in mobile technology. He loves technology, especially mobile technology. He’s an avid blogger and writes on mobile application. He works in an iPhone application development company. Android App Developers.