Mobile applications, a safe business

Mobile application development has become one of the largest industries in mobile technologies and there are thousands of applications for mobile users. In the Apple App Store there are more than 85,000 applications available for users, according to data published by Apple in September 2009. Making money with them is a good idea for developers and entrepreneurs who want to take advantage of the mobile technology industry. A mobile application can be based on a good idea, work very well and be chosen by many users. But, in the mobile market, that does not automatically translate into profits. A free application without advertising will hardly generate revenue, no matter how many users it acquires. However, there are several ways to make money from applications and not all of them involve charging for the service. One of the ways to make money, of course, is to set a price for downloading the application. This option has its pros and cons. On the one hand, it can work. In fact, a Nielsen report reveals that users are increasingly willing to pay for their downloads when they find something of value in them. But on the other hand, the market is very competitive. If you compete against free programs, it is difficult to do much to become the users' choice. That is why it is advisable to evaluate ways to monetize applications without charging users for their download. One option to keep the application free and still make money is to implement sales within the application. You can charge for extra services or sell virtual goods, a business model that is booming. For example, there are applications on Facebook that sell gifts to send to friends. Another sale that works very well is that of accessories or extra weapons within games. Applications like Angry Birds, for example, offer extra tools that help pass levels and cost real money. Users have a great tendency to buy content within applications. According to a study (PDF) by PlaySpan, one in three gamers has spent real money on a virtual purchase. Another alternative to consider is getting a sponsor. Although it is not usually the option that yields the most profits, it can help maintain the application and establish a solid position in the market, to continue developing Apps. In addition, the sponsor's name can generate trust in users to attract them to use the application. Finally, there is the option of selling advertising space. The more the application is downloaded and the better known it is, the more can be charged to advertisers for the ad. That is why in many cases advertising can generate higher revenues than the sale of the application, since the fact that the download is free means that, surely, the number of users will be greater. What are you waiting for to launch your application? Call us!