Business models in Apple apps: Discover the perfect one for you

There are numerous types of applications. I would dare say, almost as many as there are types of companies or developers. And, although we have a significant number on our devices, it is also true that the number of those we regularly use is drastically reduced.

This shows the importance of selecting each of the details that encompass an app: UX/UI, content, onboarding, accessibility… details that will also change significantly depending on the audience they are addressing, and therefore, we can also say that there will be so many types of each element, such as users.

But if there is something that reduces the possibilities to a smaller number, it is the business model chosen to, as we like so much 😉, make our app profitable.

And do you know that these benefits can vary considerably depending on the model you choose?

That’s why today I want to talk to you about the different business models that you can use if you are going to launch an application for an Apple device, and make it as profitable as possible.

Application business models in the App Store #

Free #

In a free application, the user will be able to download the app and can use it completely, without making any payment.

This model is used on many occasions when direct economic benefits are not sought: improving brand image, validating a market idea, showing a portfolio…

The most common option to generate direct income with this model is by inserting advertising banners.

In this way, the business model will be very similar to content websites that obtain their income from advertising, so you will need a significant number of users to use your app, and also, to do so on a recurring basis, so that those incomes are maintained over time. Furthermore, it is very important not to saturate the user with advertising so as not to impoverish the user experience.

In this case you can use third-party SDKs to be able to enter the ads, the most used being Google’s AdMob platform. In its documentation you can see how and where to insert the code to display the ads.

The chosen advertising platform would be the one that would show you the management of said ads, benefits, configuration, etc… and would have its own payment requirements.

Freemium #

In the Freemium model, the user downloads the app for free.

From there, you have two options: Provide a period for which the user can use all the features and access the content of the entire app, when this period expires, they must pay to continue using it. Offer basic content or features, which can be used unlimitedly as long as they want, but in this case the user must pay to access higher-value content or features.

That is, the user will use a part of the application or for a limited time, but must pay to use it completely (that is, for the Premium part, not included in the free part)

In this model, it is key to show in the part that the user will see for free, the details that can provide the most value and solve the problem why they decided to download your app, and therefore, make them want to continue using it completely.

In this case, Apple makes the following in-app purchases types available to you

Consumables #

The user pays for elements that can be consumed: such as gems, lives or cards.

This type is especially used in games where the user needs some element that they will use to continue advancing.

Not consumables #

The user pays only once, and with this, gets the new content or feature, unlimitedly.

In this case, it can be used for other types of applications that are not a game: a new filter for the camera application, decorative elements for your avatar, etc…

Auto-renewable subscriptions #

The user will pay for Premium content, which they will use for a limited period of time.

Thus, once it ends, it will be automatically renewed.

Non-renewable subscriptions #

Same as the previous one, but in this case the subscription will not be automatically renewed.

Learn more about payment options in the Freemium model #

You can see more information and very useful guides on the Apple developer page about business models and monetization

Paid #

In this payment model the user will pay to download the application.

Once downloaded, the user can access all the content and functions of your app, it is the simplest direct payment model that exists, similar to the purchase of a physical good.

For this model, the most important thing is that you can show the user the capabilities and benefits of your app.

As a first option (the first impression counts a lot) it is essential to carefully select the captures of screens and videos that you will upload to the App Store, as well as knowing how to explain in the description of the app, the problems that your user can solve.

Another highly recommended alternative would be to have a landing page so that you can show more information about the benefits that your app brings to users, both in text, images or video.

The prices are established when the application is uploaded to the App Store, on the product configuration page, and the different prices can be customized for different countries.

Paymium #

In a Paymium model, the user pays to download the app, and with this they will have access to certain features, but to be able to use it fully (Premium part), they will have to pay again.

This is a way that can be applied to higher-priced apps, allowing their most basic use at a reduced price.

It may be interesting for apps that can be used by amateurs and professionals, the latter being the ones who would pay for the complete app if it means a greater benefit than the expense they have made.

As in the previous case, a combination of an excellent product page in the App Store and additional information outside of it will make purchases easier.

In this model, it will also be set on the app’s product page in the App Store, using a combination

Benefits and drawbacks of the models #

Alternative business models #

Although the ones you have seen previously are the ones that you can manage more directly through Apple, and therefore, the ones that I recommend. You have other ways to earn income from your more apps

Sponsorships #

If you manage to associate with a brand that wants to make itself known through your app, you could organize activations that would allow both said brand and your users to benefit from said action, so this would be a new source of income with which to pay for the development and maintenance of your app.

Crowdfunding #

In this case, you could launch a crowdfunding campaign, with which you could initially obtain the necessary financing to launch the development of the app. Additionally, with users having provided an upfront payment before making the app, you could validate the idea and confirm that it brings value to your users.

It would also be an option if this allows the app to scale by offering features that represent a significant improvement.

Then, your users could use download or feature unlock codes to get that reward for the funding they provided you.

Affiliation #

An affiliation model allows you to “Invite a friend” to try the application, although it would mean that you would have to reward those who invite, could bring you a considerable number of purchases or subscriptions.

Conclusion #

Apple makes the tools for its recommended business models available to developers and organizations, but it will be up to you to select the most appropriate one for your app based on your users and objectives.

It is not a trivial decision, so dedicating the necessary time to it can impact whether the application business is viable or fails. As in so many other elements in which the user has so much to say, collecting feedback and responding quickly to demand can save you time, money and aggravation.

In addition, the different models have their configuration to determine and collect amounts in a secure, native and efficient way.

Each of the models or strategies can be combined to align with the needs or marketing strategies you determine, but it will also be key to put the user at the center.

Finally, as you probably know and may be thinking, third-party stores can now be integrated into iOS in Europe… but that is for another (or other) article.

And now that you know this, which model do you find most interesting for your application?