Business Opportunities with Android Application Development
Business Model for Android Application Development
Android application development is no doubt a booming and ever evolving field. If you have an excellent
application idea, also understand that it is going to be an investment for your firm. Whenever you talk
about an “investment” it’s but obvious implies that you are expecting a return on it. For this very
purpose, you need to have an application revenue model or an app business model ready. Make your
app a revenue generator rather than a liability for your business.
Here are some of the business models you can consider:
Paid Application Downloads
This business model includes a payment before the user can actually download the application. There is
absolutely no option for “trial”. User needs to make a decision for download just by looking at the
description and screenshots that are submitted to the app store. This is a method which can give you
quick returns. But maintaining customer satisfaction in this case is tough. Once a user has paid and
downloaded your application, and it does not deliver as per customer’s expectations, it’s a sure shot
decline in a “happy customer” experience. This business model is therefore seeing a steady decline.
This business model is most commonly used in applications that are initially free to download. They
however have a payment scheme for advanced features etc. Here are the most common contexts –
unlock some advanced features, eliminate pop ups, download some needed digital content, or for some
virtual goods. The basic app is free, but for advanced features or goodies in some games, user needs to
pay. This business model is advantageous as users get to “try” the app before they make any payment of
any kind. This business model has seen a fair amount of success.
Another very profitable business model for Android Apps is a Pay Per Click Model or Cost Per Mille
(CPM) model. This model is beneficial as your app gets wide exposure via popular ad networks and you
need to pay only for what you benefit from. If your ad is clicked on or is shown a thousand times. This
business model for app monetization has seen a rise in recent times.
Affiliate programs are another sure means of app monetization. Your app will see the impact. If not
directly, your application can generate revenues via leads or sales commissions. For example, if you have
a travel app for android, you can create an affiliate program that gives you a commission on every
booking that is done via the usage of your app.
Brand building is important. If you want to see a successful application, increase it’s number of
downloads – users etc. That’s the only way to spread awareness and build a brand for your firm. Big
brands generate big revenues over time. That’s a fact.
Other than these monetization models, you can also earn revenue by offering additional services with
the application like, an app that provides free legal information can be a gateway to your firm’s legal
services which are appropriately priced. Some apps could be a part of the services your firm offers.
Options are plenty.
In conclusion, it’s not just about creating amazing android apps, it’s about selecting the right approach
to be able to monetize it.