We all know that it isn’t easy to make profits on app these days. There are thousands of apps launched each month, and not even half of them cover their making costs. So, how can you develop and build a successful app business? Here is a look at few of the strategies that you should always keep in mind being an app entrepreneur.
1. What’s The Risk?
If you are a developer, you need to understand that there is a risks associated with bringing out your own app. The truth is, if you are not ready to take the plunge, you should chalk out a viable plan. You can, as a developer, work on contract while making your own app in the spare time. This will not only increase your portfolio but help you cushion the effect in case your app doesn’t meet with the success you feel it should get. Yes, this approach has a far lower risk quotient and you can work in the software service business.
Think of the long term, do not just think about earning money as a developer from contract work but take time to have your own app in the app store. Remember though, it is only a very small percentage of app development projects that see profits in millions, so you should always weigh risk versus rewards.
2. Your Audience
Focusing on the target audience is important, not only for you but for every business. To put it simply, your app will only be successful if you can engage your target audience well. If your target audience is enterprises, statistics suggest that on an average developers who target enterprises as their target audience make profits four times more than what apps on an average do when they target normal consumers as target audience. Businesses need a lot of interesting software and will not think twice before spending the fee for something useful, unlike consumers who might shy away when asked to pay up. Remember, if you need to focus on consumers as your target audience, you need to go all out with the right strategy otherwise it won’t take long before your app goes into oblivion just like many others.
3. Being Creative Counts
It is important that the overall look and feel for the app should go with the app itself. For instance, a sports app should have a ‘sports’ feel throughout while a ‘productivity’ app should be business friendly in design. Designs are way important for an app as novice looking designs that aren’t well thought off will actually turn into lower ROI and lesser download (along with bad reviews).
Think of the right monetization scheme and do not focus on advertising as your main source of revenue – remember, you will most probably not be able to make out a lot of revenue by using advertising. Paid downloads do not fare better either. You should work out on the right freemium model. You can have subscription based fees or annual licenses that will help you get recurring revenue. The latter option is best if you are targeting enterprises. If you are targeting consumers, you can always have the option of in house purchases available.
Remember to weigh your risks and your finances correctly before setting out on the exciting journey of being an app entrepreneur! Knowing this will help you do a lot better than your peers.