Nothing in life is free!! We have heard this quote many times and we know there are no free meals. Launching a business whether offline or online, everything boils down to Profits. 

You can quickly establish your business and become Millionaire in a short time. If you are thinking it to be some kind of Hoax!! Well, it is not. There are still some legitimate businesses that can aid you to scale up your business – we are talking about On-demand Applications.

We have heard a lot about On-demand Apps and have seen some of the finest examples like Uber, Gojek, Instacart, Postmates, UberEats, and more. They have been launched after quite hardships but today you see them they are flourishing where the sky is the limit. Conquering nations, they have made their presence felt across the globe in no time. The process to churn out a good business, brand visibility, less maintenance, low spending on resources, and great profits. 

So, if you are wondering how On-demand Applications like Gojek will be making money?

To understand the business model, we have to dig deep into how these apps generate revenues.

On-demand App Monetization – What Is It?

App monetization is the process of generating revenues from users, service providers, delivery drivers, and various other ways. It depends on how the application engages with the customers and most importantly what it is selling.

Thus, it includes leveraging multiple monetization strategies after researching on your target audience and location necessities. 

The success of any app would be constrained, and its potential earnings could not be realized, without a successful app monetization plan.

Following are various App Monetization Strategies to try with your Super App.

• Premium Features 

These kinds of apps, which are available for free download and usage until you try to utilize them for certain tasks or activities, will frequently demand payment. Yes, those are premium features that have a cost to acquire them and are gated. The purpose of this strategy is to get people interested in your software while providing them with a thorough rundown of what it can achieve without giving anything away. 

The goal is to attract more app users and hold their interest long enough for them to consent to pay for further in-app services.

• In-app advertising 

In-app advertising is another tried-and-true method of app monetization for free apps. The developers benefit greatly since they make additional money merely from users of the app. 

The top or bottom of the screen might be used to display the advertisement. You can see the ad banners on the screen when you play games or utilize apps for other things. Users won't find these overly annoying and can easily tolerate them.

A relatively new category of advertisement known as a "brief video ad" is also noticeable. While watching the advertising, you can play a game. It's an intriguing approach to providing people with promotional information.

• Subscriptions

This is quite similar to the freemium approach, but with the subscription model, users are aware from the start that the services they can access are restricted. In other words, consumers have a specific range of options available for the free plan when they download the program. 

Users can buy a subscription to a paid plan if they want to upgrade the app.  Usually, there are several distinct tariff categories to choose from. Users have access to more features when they purchase a particular package.

• Generate revenue from other sources

Apart from the above mentioned ways, you can apply Delivery charges, Cancellation charges, Wait-time charges (taxi booking), Surge charges (taxi booking), Charge more during early morning/late nights trips (taxi booking), etc.

In The Nutshell

Compared to paid apps, free mobile apps hold a larger market share. There are numerous methods for making money from free mobile apps, and each one will produce a different amount of revenue and have a varied user engagement rate. We advise choosing the monetization strategy based on the target market, objective, and app niche. 

You can mix multiple monetization techniques to increase the profitability of your free app: 

It's advantageous for both you and your consumers if you run advertisements and provide a premium, ad-free edition of your software. 

Additionally, you can combine subscriptions and advertising, as well as in-app sales with subscriptions.

All you have to-dos is figure out the right On-demand Application Niche that works for your Online Business. However, before proceeding you need to be well-researched in terms of the target audience, the location you will be launching the app, etc. This helps you put the right features and functionalities based on your target audience.

Also, we suggest you get the demo on multiple devices that allow you to gauge the workflow of it. Investing in a White-label Gojek App Solution can be your best decision when you leverage these brilliant monetization strategies.