Why apps are a great starting point for aspiring technopreneurs
5 ways to create a revenue generating app
Many entrepreneurs dream of coming up with a revolutionary idea for an app that will not only change the world but will generate millions in revenue.
"One of the quickest ways to become an entrepreneur these days is to develop and publish a smartphone app," says Martin Zwilling.
Zwilling is the Founder and CEO of Startup Professionals, a company that provides services to startup founders around the world. In an article in Forbes, he says he still recommends apps as "a good starting target for aspiring technical entrepreneurs". The reasons for this, he says, is because they don't require a large initial investment and can teach technopreneurs about business with little risk.
However, he adds that while the barriers to entry are low, the big disadvantage is that very few apps achieve high levels of popularity your read about, and many do not generate much revenue.
Here are our 5 favourite ways to build a revenue generating app.
1. Sell a digital service through your app - Make the free app available in an App Store so subscribers can get access to the service, advises Zwilling. "The ideal business model is to establish a direct-to-consumer service that enables you to bill the customer directly ."
2. Make your app support all platforms - The app should be compatible with both IOS and Android to maximise reach, he says.
3. Offer premium services after the user is hooked - Once you have a consumer base that uses and likes what you have, convert them into paying customers, says Zwilling.
4. Commoditise complementary products - While the app remains your core product, complementary products support their function. Zwilling gives an example of fitness products for fitness apps. "If you want to drive up the demand for your core product, one smart tactic is to drive down the price of all complementary products".
5. Look for value points to control - Be like Google, says Zwilling. "No company has more value control points than Google, which spans advertising, e-commerce, social media, video and mobile, as well as a full suite of hardware products."
App publishers should also always be on the lookout of any new value points emerging and be quick to take advantage of them.