Understanding the revenue model of the free app!!!


If you just surf on the google play store then you will find that most of the available apps providing the basic features or in some cases all the features at the free of cost. Still these companies are profit making and showing the increasing the trend in the revenue across the globe. One must start thinking without getting a single rupee after download, how one can provide the service or how can afford the staff to run the show?
The simple answer is APP company’s revenue is not totally dependent on downloads but huge number of downloads help the company to reach at the mass. Understanding the revenue model of the free apps will give the logical answers for making huge profits by these free app. Let’s cognize the resources for earning revenues.
·         Advertising
Most of the companies prefer this type of resource for betterment of the revenue side. In this category, one will get lots of options for advertising through the display picture, video or frames after specific duration. Even some games allow you to enter the next level only after watching a video or downloading some other additional app, such kind of marketing is termed as indirect marketing.
·         E-mail marketing
In current era, e-mail marketing is little bit old method still companies are getting the fresh wave to collect the data for e- mail marketing by launching the various apps. E-mail marketing is generally used for the maintaining the loyalty of the customers and bridge the communication gap between the customer and company. Established and big brands are still using the technique of email marketing more than small players
·         In –app Purchase
In-app purchases includes the actual cash flow for the company by providing the premium services. Games are the good earners in this category through selling the game currency or lives required for continuing the games. Customers may asked for subscribe and renew the license to enjoy the services after specific period of time.
·         Data collection and selling the same
Above bullets briefly explains that apps gives opportunity to collect the data on large scale from customer’s email address to their feedback about the services or products as well. In normal scenario companies having strong ethics & principles always protect the database collected. Some companies earn the revenue by selling collected data to third party. Data may contain email address, social account details, taste & preference recorded on the websites or recorded in the feedbacks. This data can be used for various purpose ranging from the research, marketing to even creating the influence in the society.
When I just take a second thought on database and the wave of digital marketing, leads to well said lines. “There is no free lunch in this world and if somebody is selling something for free or at cheaper rate, you are unknowingly giving the more valuable things in return and now a day it’s a data. Remember guys its said that “DATA IS THE NEW OIL”.
Readers, especially Youngsters, henceforth understand the value of your time before spending it on internet or any app. Always evaluate the returns you are getting by using the technology. Being available digitally always doesn’t mean that it’s gaining returns for you. Kindly grasp the power of digital platform and work hard & efficiently to create the new “TECH GIANT” in India.

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