FREE APPS: HOW CAN YOU EARN WITH SOMETHING THAT’S ABSOLUTELY FREE?

Mobile devices have become an integral part of our lives. They are handy and have made everything a click away. Therefore, the platforms on such devices offer a handsome opportunity to businesses. 

Having a successful application with a high no. of downloads is a goal for businesses and ventures these days. After all, apps nowadays work as representatives for any enterprise, especially for the one that’s trying to grow and establish itself. 

A mobile application is a software program that users can download and access directly, using a phone or any other mobile device. Companies choosing to develop applications can go for either free or paid apps.  

But before making a decision hastily, let’s be practical! Paid apps definitely generate revenues but free ones are great for creating a network and a user base. 

If you are just starting out, you can’t risk to depend on the smaller chunk of users that is willing to pay for any application. Rather, your aim should be to have as many users as possible. That happens with free apps, as there aren’t many expectations attached with them. Users get to try them without paying any amount, so they tend to choose such apps for their devices without any apprehensions!

Why some apps are free?

Some of the applications are distributed free through app stores; the apps we download as users and that don’t require us to pay to avail their services. Then what about the revenue generation through such apps? How do developers make money? 

These questions don’t usually pop up though. Let’s get to know how such applications make money!

The crucial query – how do they make money?

There are many ways through which developers of free applications can make money:

• Selling advertising space within the app

Advertising can make developers earn money. Hence, apps with ads are distributed for free to reach as many users as possible.

Ads are vital for generating monetary benefits, plus they are quite simple too. The display of the ads has to be planned out in an application and it’s good to go, with respect to making money from ad networks. 

Three types of ads can be integrated into any application:

1. Interstitial ads

2. In-app video apps

3. Banner or display ads

• Offering the basic version free - THERE’S A CATCH HERE

Developers often provide a basic version to users for free, in order to lure customers to upgrade to a paid version of the same application.

• Allowing users to buy more features within the app

Sometimes, users can buy features within an app itself. Generally, users get billed for these in-built features through app store.

Don’t worry users, you can block-in such purchases through settings.

• Offering free applications can be an option to lure users to consider other products of an enterprise

This is done to intrigue customers in a company’s other products as well. These are a form of advertising.

• CPI: Cost Per Install Networks

It’s a different way to earn money. For every app a user installs, they have to pay an average minimal fee ranging from $0.80 to $3.00, and in return developers get constant profits.

• App sponsors

A sponsor gets the money rolling-in and in turn elevates the value and reputation of a brand. Though finding a sponsor isn’t an easy task, but if you feel you can pitch your idea with conviction, this is a go-to option. App sponsors are another way for your application to generate revenue.

• Other miscellaneous options

Apart from the above-mentioned points, developers can earn more points and hence, more money through the following:

1. Freemium

2. In-app purchases

3. Sponsorships

4. The business can also be promoted on a highlighted ‘featured’ section to draw users’ attention.

Why are free apps preferred?

Free applications have zero download threshold. Nothing stands in the way of a user opting for such an app.

Users can download them without giving in much thought, try for themselves and then decide whether they want to stick with them or not. This is a reason why free apps generally are downloaded way more than paid ones. 

They are more likely to receive positive reviews which are great for App Store Optimisation, which is further great for more downloads.

If you too are willing to develop solutions and applications, let us know in the comments below. Techugo has helped many firms to come up with the best solutions. Our dedicated team is always occupied because we are ever willing to help ventures seeking help. Feel free to connect with us.

Godspeed to ideas and innovation!