According to statistics, users spend up to 86% of their smartphone time on apps. More than 50% of transactions and online purchases are made through mobile programs, and that number is increasing every year. Agree that to carry out all operations – from ordering sushi to organizing your own business – through a smartphone is banally comfortable. For this reason, the lion’s share of the audience gives more preference to mobile programs than to desktop services. Changes in the consumer mindset are driving the rapid development of the smartphone software market. However, only 4% of apps reach their target audience, get high ratings and bring developers real profit. The remaining 96% remain in the shadows.
Is it possible to get into this “lucky four” and develop a profitable mobile app without special skills? The answer is yes. To understand how to properly launch a startup from scratch or successfully invest in a mobile application, let’s consider global trends applicable to both global and Ukrainian audiences.
Specialists of KOLORO studio will help at all stages of project creation – from idea development to implementation of the finished program.
Monetization in mobile applications
How do I benefit from the program that has been developed? There are five types of apps based on the type of monetization:
- It’s free. An important clarification is that it is conditionally free for the user. The optimal option for expanding the audience of an existing business is to sell goods or services of large companies: an online store, a food delivery service or a cab service. How do you make money from free mobile apps? From each order paid through the app, it is possible to get from 10 to 30% profit on commission.
Example: The company is a small online cab service. With an average order value of 180 UAH and 10% commission from each paid order the owner of the application will receive 18 UAH. One cab driver makes up to 20 trips per day, which equals 360 UAH of commission. Assuming that 500 cab drivers work in the cab park every day, the daily commission will be = 360 * 500 = 181 000 UAH. Monthly revenue will be equal to UAH 5,430,000 – with a minimum 10% commission on each order. However, such amounts are possible with the preliminary organization of business processes, passive income in this case will be too small. - Free with advertising. Suitable for projects with an exceptionally large audience. Monetization is done by showing advertisements inside the program to users. For 1000 clicks on one banner, the application will earn an average of 0.5 USD. With an audience reach of 1,000,000 users, this amount will be 500 USD. Bonuses to users within the application itself – for example, additional resources in the game or free use of closed functionality after viewing ads – can help in “scoring” clicks. You can also make money with a paid ad disabling service.
- Fee. Play-markets take their commission for listing on their platforms, for example, Apple has 30%, the remaining 70% is profit from each user purchase. Let’s take a look at how to make money from installing mobile apps.
Example: A video processing program costs 2 USD, 1.4 USD of which is revenue minus commission. At 100,000 downloads, the profit will be 140,000 USD, which at the exchange rate of 1 USD = 24.8 UAH equals 3,472,000 UAH. - Lite/Pro. Another successful option on how to make money from selling mobile apps. Monetization is done through paid unlocking of advanced functionality within the app.
- Domestic shopping. Selling new functionality within the program, such as additional filters in the retouching app. A proven method on how to make money in mobile apps. If the user likes the program, a small amount from 1 to 15 USD.
Application development stages
The first and most important step in creating a successful project is to concretize the idea. Without specifics, even a concept capable of changing the world remains a fantasy far removed from reality. The more detail and outside criticism the better.
Reach out to your close circle and state your thoughts. A simple but effective tip: when presenting a concept, do not say that it is yours – this way you will get a more impartial assessment and will be able to analyze whether the idea is successful or it is better to come up with something more interesting.
Once an idea has passed the “sanitary cordon” stage, you need to start making it a reality. There are two options: try to do everything yourself or turn to specialists.
So, how to create a profitable app on your own and is it possible? There are two proven methods:
- Take an accelerated online programming course from scratch. A good idea if the direction is of interest.
- Take advantage of a program creation platform such as BuildFire. Yes, the platform will not replace full-fledged development, but you will get an average complexity program at the output.
Taking up independent development, you should do a huge amount of work and go through all the stages that determine whether the project will “take off” or fall into the 96% of other applications:
- Business expertise of the product idea – how profitable the project will be
- Evaluating the project from a design perspective – determining the level of complexity of the project
- Creating an app prototype and unique design, branding
- Final work on the project and launch
The average development time is 3-6 months. With a quality approach you will get a simple or medium complexity application made by your own hands – a reason for pride and a good start to your business with the right monetization setup. To realize a profitable app that reaches 100,000+ users, you can’t do without the help of professionals.
Using the services of KOLORO specialists, you can get expert assessment and qualified assistance at all stages of application development.
Profitable mobile apps
What does the most profitable app look like? It fully covers the need of the target audience and directly interacts with the potential customer in a convenient way. In total, the market highlights 9 of the most common non-gaming trends that can be monetized:
- Service sector
- Specialized applications
- Android Instant Apps
- Payment systems and wallets
- Augmented and virtual reality
- Cloud storage
- Social media
- Music and video
- Utilities
Scope of services: from cab delivery to ticket booking and pocket therapist
Examples of applications: Glovo, TripAdvisor BlaBlaCar (Android, IOS)
Perhaps the most relevant area for creating a profitable app. Anything that can make a user’s life easier is in high demand. The program may offer cleaning and laundry services, cosmetic, medical services, food delivery or preparation, freight and passenger transportation. When choosing a direction, bet on the unconventionality of the service or industry.
Highly specialized applications: tourist routes, training and support programs
Examples of apps: Pedometer, Be My Eyes, Inkitt (Android, IOS)
There will always be something missing from the App Store. Often users feel the lack of narrow-profile applications, and after the release of such a program, the developer will get even if not many millions, but really interested in buying or paid subscription audience bypassing the competition. That’s why an interactive map of hiking trails, lessons on car or plumbing repairs, a program to improve memory, and a host of other ideas that can solve a specific problem is a great startup.
Android Instant Apps – an app without an app
Examples of apps: any program on Google Play with a “Try Now” button.
Sometimes the only thing that holds back a potential user from installing a program is the installation process itself. In the absence of free space on the device or unwillingness to “clutter” the smartphone with unknown programs, the user will not appreciate the usefulness of your service. And for absolutely nothing.
This kind of objection can be circumvented with the help of website based applications. You don’t need to install them, configure them additionally, look for free megabytes of space – everything is simple and without pitfalls like intrusive ads or a couple or three “accidentally” installed additional programs.
The ease really buoys the user, even if they weren’t initially fully interested in the product. The theme of the app can be any, the ultimate goal is to install the full version and further purchase a subscription, advanced functionality or services.
Payment systems
Examples of apps: ZilberPay and ePayments (Android); Wallet. Discount cards, Apple Wallet (IOS)
With the spread of the NFC module built into smartphones, the demand for universal wallets and programs to control finances is growing. The advantage will be the ability to keep a record of expenses or create a family budget. It is convenient to carry out all financial operations through one program – here and online banking, and summarizing the monthly budget.
Augmented and virtual reality
Examples of apps: Google Translator, Google Lens, Mondly, IKEA Catalog, TapMeasure (Android); Ink Hunter, WaveLength, Magicplan, JigSpace, or IKEA Place (IOS)
A year earlier, augmented (AR) and virtual reality (VR) were associated exclusively with entertainment. Today, the AR direction is tightly integrated into the industries of commerce, medicine, engineering, real estate and repair, VR technology continues to develop at the level of gaming and event sphere. The benefits of augmented and virtual reality include visualizing a product or service to the customer without creating physical mock-ups, which simplifies and expands the range of interactions with the future customer.
Cloud storage
Examples of applications: MEGA (Android); iCloud Drive (IOS)
“Clouds” are used both by ordinary users and owners of large international organizations. While users were previously satisfied with desktop versions, the demand for mobile-driven versions has increased. Cloud technology saves space and securely protects your data, allowing you to access it from any device at any time without storing it on physical media.
Social networks and dating services
Examples of applications: Badoo, JustLunch (Android, IOS)
For the first quarter of 2019, the most popular app was the dating service Tinder. Socializing, searching for friends or a couple – the user is interested in a service that can find the right match for him. To avoid competition in the segment, it is better to cover empty niches. For example, create a highly specialized profitable app for communicating with like-minded people.
Music, video and photos
Application examples: PowerAMP (Android); CloudBeats (IOS)
A convenient music player or video player with support for interactive media library, a program for processing audio, video or photo content – despite the overflow of offers on the market, you can always develop something unique and in line with the latest trends, just listen to the needs of the user.
Utilities
Application examples: IFTTT, Solid Explorer (Android); Things (IOS)
Utilities allow you to maximize the potential of your mobile device and improve the performance of existing systems. A program to control the temperature of the main processor, which prevents overcooling or overheating, “pumped” flashlight or translator that accurately recognizes spoken language – users are ready to buy simple and convenient utilities on a par with new smartphones. However, it is worth taking into account that the utilities are applicable to the Android system.
By developing a program in one of this year’s nine most relevant industries, or by going beyond that and coming up with an entirely new concept, the app can be monetized and successfully grow a business in a smartphone. Consider the ways of monetization and the main stages of any project.
We have written more about how to create a mobile app in the article. KOLORO offers assistance in mobile app development: from idea creation to final project launch and project selection. Get a free consultation now!
