Commission Droid and apps Business Model
This post is the second wich explain how to earn money with Android. Read te first here. There are
many business models, hybrids and
variations. I'm going to talk about the 6 most common and used, with particular
emphasis on the advertising model.
1. Payed App
The first
one is a paid app. The user can install it, making a payment (usually
between 1 and 5 euros). Both in this mode, such as in advertising mode,
the developer takes 70% of revenues and 30% goes to Google.
As a
convenience, the developer takes a fixed income for every download as a way to
earn money with Android, but these apps usually have a low range and need to
advertise and much promotion. Maybe it will be better to use this apps later
when you become more experienced with Commission Droid.
3. Free App with advertising
No doubt, and my judgment, one of the most profitable and interesting. It has the disadvantage of payment apps that are not available to users who may be interested, but can not buy it, but through advertising banners, offer return on your programmer. It this case it can be yourself with Commission Droid.
Downsides? Many users (especially those who are unaware of the importance of advertising to monetize a project) see advertising as a blasphemy almost unbearable by the developer against its users.
4. Freemium
The Freemium concept linking the payment model with the free model. It offers a free, fully functional but with certain limitations (caution, not any limitation: no advanced features, advertising, etc ...) and it invite you to buy it if you like it.
The user chooses which use, in its discretion, leaving all parties satisfied. But balance is quite complex, since the limitations of the free version should be well chosen, to differentiate themselves from the next mode.
5. Demonstration - of course it can be made also with Commission Droid
A demo application (well known to thepublic) is one that shows an example of the product ( a couple of levels in a game, or a period of probation) and invites you to buy the full version if you like.
This mode is very interesting, but it should be known that usually negatively affects the user, which imposes a restriction in a very sudden and unexpected way.
6. Added in-app
Finally, this method allows us to introduce the purchase of features or functionality from within the application itself. For example, buying a pack of levels in a game, or a monthly subscription service.Advertising model
But back to the advertising model. How does this method really? There are four roles involved in the process (this one can be build with Commission Droid also) and can be easily seen in the following image:
·
You with Commission Droid: Create the appication and reserve a space to include advertisments.
·
Ad Clients: A company or user pays a certain amountfor advertising their product or service in various applications, for the sake of popularity.
·
Google AdMob: The intermediary. Serve ads on Android, allows advertising and charges a small percentage when performing an action.
End User:
The customer (end user)
of the application, interact in a certain way, either actively (by clicking)
or passive (viewing the ad),
generating profits for the developer, and a visit, download and sales for
advertisers .That interaction that occurs between the end user of the application and the ads is not always so simple. There are several revenues that you can earn money with Android using Commission Droid, and usually determines the advertiser. The most common are these four:
1. CPI
Cost
per impressions (1000): It is the most passive
of the four (and that does not require direct
action by the user). When end users display 1000 announcements,
the developer receives a small income (an
example would be 0.02 dollars per 1000 impressions).
Obviously, for these ads work, we have many users using our application, since
very small amounts charge 1,000 views. First way to earn money with android.
2. CPC
Cost
per click: From common utilities and more, it is
make a deposit when a user clicks on
the ad. The earned income is higher than the CPM (ie €
0.10 per click). Also, advertising platforms have
several methods to rule out fraudulent clicks according to several criteria.
3. CPL
Cost
per "lead": In this case, the income
is received when the end user clicks on the ad and fills out a form, register or some other action. The income is
higher than the above (eg 2 euros per record), but also more complex to get an income.
4. CPA
Cost Per Action: Finally, in the latter case, the income is received when the end user performs a certain action, usually a purchase, a download or similar. Revenues are usually quite high in this case (for example, 5 to 10 euros per sale), usually commissions the product sold.
Read more in some other posts to come . . yo get a full view of how to earn money using commission droid.
