Just How Profitable Are Mobile App Development Companies?
Do you know that the global app development industry is currently valued at $206 billion? And do you know this is set to reach around $565 billion? Well, now you do. The mobile app development industry is one of the most lucrative industries and everybody wants a slice of the pie.
Have you ever heard the expression, “There’s an app for that?” We bet you have. This is an infamous expression that has made popular thanks to the rapid app development process that began with the introduction of Apple’s iOS SDK. Searching for the best restaurants to eat at? Well, there’s an app for that. Are you looking for the nearest e-bike station?
Well, there’s an app for that as well. Today, let’s take a minute or two to understand how an App Development business earns profits. We will also talk about eight points that you should keep in mind if you are planning to break into this huge app development industry.
How Do You Make Profits From App Business
● You Apps Must Be Robust
Well, like any great business, without a robust product, your business cannot survive, especially in an industry that is already very competitive. Your product, or app in your case, must be robust, and innovative, and must have a unique selling point, also called USP.
● Channels of Revenue
There are three major channels of revenue. There’s a free with ad model, paid model and, then there’s a free with in-app purchase model. Each has its own unique set of revenue streams.
● Business Application Development
Developing business apps for SMEs or large corporates certainly has its incentives. However, the business app development process follows a much more complex developing phase. If you are a mobile app development company, then you should keep this in mind.
● Government Contracts
Security of a government contract is another way of excellent business model, one that will bring in a boatload of cash. You will be exclusively developing for the government sector, whether that’s for traffic, banking, or the military. The custom healthcare software development contract is also another very lucrative contract.
8 Things To Keep in Mind Before Getting Into App Development Business
The mobile app development business is very competitive, and to break into this industry, there are some things that you should keep in mind.
● Having a Creative Team
To have a successful app development business, you will need a creative team who can develop innovative apps that has a unique selling point.
● Set a Tone For Your Elevator Pitch
When you have investor meetings, you will have a short window to prepare for a business presentation. How good your presentation is something that is not that important. Set the tone right and be confident.
● Set Your Target Audience in Mind
People often think that just because they have made an app, everybody will use it, but that’s just wrong. So, find your target audience who would want to use your app and market for that.
● Choose an App Development Platform of Your Choice
To develop an app, you need an app development platform. Flutter, Xamarin, and React Native, among others, are some of the most popular app development platforms.
● dc Optimizations Before You Submit Application For App Marketplace
Before you set your eyes on App Store or Play Store, you should know that there are definite rules that every company must follow before their apps are verified for deployment at these app marketplaces. So, take the time to optimize your apps.
● Monetization Options
Your apps are ready to deploy, and now you are wondering how to monetize your apps. Well, you can go with one of the following channels of revenue-
- Free with the ad model
- Paid model
- Free with an in-app purchase model
The Mobile App Development business is indeed a very lucrative business but needs creative minds and a whole lot of hard work. But if you manage to overcome the challenges, then the journey ahead will be a whole lot smoother.