With the Internet available as a universal inter-connected tool, possibilities regarding business models become endless. Unlike a well-established local business in a small town, a business based online is required to change with the constant evolution of technology, convenience, and culture. Particularly speaking about convenience, one may look to mobile and web applications for examples as to what a business plan may look like.
For example, we can observe Angry Birds, a very popular mobile gaming application. Although applications can be monetized by charging per download, Angry Birds, like many others, decided to provide the service without payment. Later, they implemented in-app purchases and ads, which help with revenue. The benefits to having an app in the market vary, but importantly include market range, diversity potential, and convenience leverage. Every app on the iTunes App Store or the Google Play store have potential for a large global community. No matter where you live, you are able to download Angry Birds. With time and positive results, possibilities of diversity may arise, such as creating Apple and Android versions of the application, or even creating other forms of entertainment as Angry Birds has done (merchandise, cartoon movies, etc.). The leverage that specifically mobile applications have is the convenience of opening the app wherever and whenever you are. If you have a smartphone, you are a potential customer.
Now, when anyone can create an application, a common struggle becomes initiating growth. With so many apps available, how do you set yourself apart? There are a few options, including:
- Enforce communication with your customers: Set up an email subscription to update your customers on updates and grab their attention.
- Use ads: Facebook ads have especially become popular to find tune your target audience and gain exposure.
- Apply services such as SensorTower and Crittercism: These two services are examples of how you can both reach a larger market (by analyzing organic searches) and retain your audience (by engaging users who are having problems with your app).
Of course, with all technology-related products, the future is unpredictable. However, there are underlying themes that seem to take a stronger hold on society. Hopefully these examples and tips can assist anyone who is considering starting an app business!