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Our video today is about what to expect as you think about revenue generation from your mobile app.

AskSnapMobile is a short 2 minute video about building mobile apps.

We see 100's of contacts come through our door each month asking great questions about the details of building their app. From Entrepreneurs to Fortune 500 businesses, we're committed to creating short 2 minute videos to help answer your most pressing mobile app questions.

Video Transcription

Morning everyone. It's Andy Mack back with another daily two-minute video
titled, AskSnapMobile. If you've seen the video before you know it's going
down. If you haven't, these are quick two minute videos, we see hundreds of
potential customers that walk through our door on a monthly basis, all asking
questions about the details pertaining to build a mobile app. So, we create these quick two minute videos to hopefully answer those questions in the best way possible.
Today, I want to talk about revenue in a mobile app. A couple different ways to look at that this, you might be on the entrepreneurial or even on the business side of things, but there are four ways to be able to make money through a mobile app.

Revenue Generators -

First and foremost, which is my least favorite of the group, are paid downloads. I'll run through the list real quick and then I'll get into the details. So, one paid downloads. Second ad revenue. Third, in-app purchases, and fourth, a paid monthly service or yearly service. Whatever it is you're creating some type of a service for a customer that you're
getting paid on a regular basis for.
First and foremost, which is the paid download. My least, my least favorite of the group. Even if you put $1.00 in front of your paid app, I can't guarantee it, but from what I've seen, this is seven, eight, nine years in the industry. If you charge people to use your app, they're not going to download it. Especially if it's not a reputable brand that has no legitimacy yet. And, most of the clients that are walking through our door that are building, at least from an entrepreneurial perspective, don't have the clout to be able to ask people to pay. It's just not a good strategy if that's the way you're thinking about making money for your brand-new mobile app. So, let's let's put that one aside. Paid downloads, let's not go there.
Ads, I think people really underestimate how many users you need using and
engaging with your app to make any type of money from ads. We're talking tens of thousands, hundreds of thousands, millions of users before ad revenue starts to make sense. And, unless you're gonna hit the viral button and this app is gonna be in the hands of everybody right out of the gate, I don't recommend building a business model around ads.
In-app purchases, I'll be the first one to admit,I have a little less experience for in-app purchases. More or less you're seeing in the gaming world, right. You're buying coins and tokens. Not, not a horrible strategy. It's just not one that we implement here much when itcomes to business and entrepreneur type apps that are more productivity focused, revenue generation, things of that nature.
The last one which I really like, which doesn't seem that crazy of an idea, is let's build a good business that has a good model. Let's provide a service that actually has value to a customer and let's charge them for it. The simplest example I could give that hopefully everyone would understand would be a service like Spotify. I'm a paid subscriber. They deliver music to me every month. I'm able to go in and be able to search and be able to listen to music and I pay a fee. Having done this for a long, long time, that is the best
way to make money by using your mobile app.

Build for where there is a need - 

As you go out there, you determine a need that's in a market. We're gonna build a piece of technology that serves those needs and we ask people to pay for it. I know it doesn't seem that crazy, but of all the ideas out there, that's the one that I've seen work best over the last, as I mentioned eight to nine years that I've been in this business.

Conclusion -

To quickly recap, we have the paid download. Not a fan, throw it off your plate. We have the ads. Need a huge amount of people using your app before that ever makes sense. We have the in-app purchases. Not a bad idea but needs to be thought through. Last but not least let's charge a service fee for a great tool, great piece of technology, or a service that you're providing.
As always, if you have any questions, please feel free to leave them in the comments. I'm happy to dig inand answer. If not, more videos coming your way soon. Thanks so much!