With the continually increasing number of web and smartphone users, creating an enterprise web application is one of the best ways for your business to earn additional income.
Web and mobile users are app-centered as they spend a significant part of their time (and money) on apps. App stores and in-app ads are proof of this as they contribute revenues amounting to billions. In fact, in 2019, Google Play Store and iOS App Store downloads totaled 120 billion – and this figure does not include app updates and re-installs. So, the future is brighter than ever for mobile and enterprise apps.
Your enterprise web application is capable of bringing in more profit to your organization. You just need to know how to monetize it. If you have no experience or idea how to do this, here are some tips and suggestions to help you make money from your web app.
Tips for Making Money from Your Enterprise Web App
One of the first things you have to understand is that there are the two major categories of app monetization.
- Indirect monetization is about making money without directly using the app. For example, you create a product that comes with a free enterprise web-based application. Even if users do not use the app, you’ll still earn from your product. The app serves as a secondary element that adds interest so clients will patronize your product.
- On the other hand, direct monetization is about earning money directly from the app. A good example would be a user paying for downloading your application from the Google Play Store or iOS App Store. The money the customer pays comes from your app. So, for direct monetization, the app is the primary factor for earning profit.
Now that you have a basic idea of the monetization categories, it’s time to find out what money-earning models you should use for your enterprise digital solution.
One of the surest and oldest methods of earning from your app is to charge a fee for downloads. The success rate, however, depends on how much time, effort, and value you put in to ensure a satisfying user experience. The average costs of apps on both the App Store and Play Store are, $0.85 and $1-2, respectively. Pricing is entirely up to you, though, as you’ll know which factors to consider.
2. In-App purchases
In-app purchases are common in most game apps, but you can also apply this model to your enterprise web application. With this model, users can purchase virtual or physical products. Some examples are upgrades, collectibles, figurines, statuettes, premium certificates of authenticity (hard & soft copies,), steelbooks, and maps for games. A shopping app, for instance, can create in-app purchases for virtual coins that shoppers can use for buying products. The shopping app is free to download, but the user who buys virtual coins contributes to the financial profit.
Meanwhile, in-app ads are advertisements that are found within the app. There are numerous free apps that use this model. For example, travel apps that come with in-app ads of hotels and resorts. Social media sites like Instagram and Facebook are also good examples of in-app advertising. Since the ads have a relatively high conversion rate (1.08% for Instagram), businesses and advertisers prefer this method over others.
The only disadvantage is that your target market may not like seeing ads on their apps. There are also users who think that in-app ads are obstructive.
The subscription strategy is an effective revenue generator, especially for enterprise web application. As they register or sign up, users are allowed to choose from different subscription packages. There are those that charge fees on a monthly basis, and there are others that offer quarterly and annual options.
Popular examples include Spotify, Netflix, and productivity apps like Evernote. Users can choose to automatically renew their subscription or cancel it without a lockup period.
4. The free premium (freemium)
The freemium model combines both free and premium strategies. As such, users can choose whether they’ll use the free one that offers only the most basic features and functionalities; or upgrade to the premium one, which has complete features and functions. Most customers who choose freemium apps do so to test it first and then once they’re satisfied, upgrade to the premium version.
Spotify also falls into this category as it offers a free version for its users. The free version of Spotify has certain limitations such as the number of times you can “skip” a song from an album. The premium or upgraded version removes this limitation. Additionally, apps like Canva and Adobe Spark Post also have free and premium versions. The free ones have reduced libraries while the premium ones have unlimited images available to users.
5. The combo
This monetization model helps your enterprise web application generate revenue by combining different models. For example, your app combines the paid downloads model with the subscription method; or the in-app ads with the freemium plus model. However, choosing this option requires a dedicated dev team. You should also identify the combination that best benefit your enterprise web application.
There are several apps that use the combination model. Their goal is to offer more options to customers.
Choosing the Right Model or Strategy
Knowing the different models for app monetization is not enough assurance that you’ll choose the right one for your enterprise web application. There are several factors to consider.
- First, you need to identify and understand your target market.
- Once you recognize your target users, you’ll get what their pain points are; which is essential in creating the right solutions for them.
- Analyze enterprise web application trends. This will allow you to get insights from other developers and app providers.
- Create a monetization plan. Visualize and verbalize it. Study scenarios that can help determine the viability of your model.
- Take time to build your product. Create a useful, relevant, and customer-centric application.
Coming up with strategies to monetize your enterprise web application is vital, especially if you want to turn your plans into profits. It can be quite challenging, but knowing your options and what to do can help. Use the tips and suggestions above to jumpstart your app monetization goals. Don’t forget to work with your development, design, and marketing teams. You should work together to come up with your app’s ideal monetization solution.