Published on May 16th, 2017 | by Jose Vasquez0
The 5 Reasons Your Mobile App Isn’t Making Money in Startup Tech
Mobile apps aren’t automatic money-making machines, especially if you make these common mistakes.
Mobile apps are exceedingly popular, both for consumers and entrepreneurs trying to capitalize on their popularity. However, simply building an app isn’t enough for you to start making money. If you don’t have the revenue you wish you had from your mobile app, it’s likely due to one or more of these reasons:
- No monetization strategy. The first and most common reason is a lack of a monetization strategy. You might have a great app, but if there’s no way for you to generate revenue, the money won’t come in automatically. Some of the most popular monetization strategies used include charging for each download of the app, allowing in-app purchases, and selling ads to show to your users.
- A small user base. If you don’t have enough users, you won’t make enough money. Unfortunately, this is a major problem with dozens of potential root causes. You may not be differentiated from the competition, or you may not be doing enough marketing and advertising, but without any additional information, it’s too hard to tell for sure.
- No customer loyalty. If customers are using your app, but aren’t sticking around, it means you have a customer loyalty issue. You can correct this by instituting more “sticky” features that reward users for using your app on a daily basis, or ones that promote referrals and social interactions.
- Poor usability. If your app is clunky and hard to use, people are going to abandon it before they spend any more time and money on it. Make sure to rigorously QA test your products (and conduct user surveys) before taking your app to market.
- Lack of value. Finally, users (and advertisers) aren’t going to give you money unless you have something truly valuable to give them. If you charge too much money, or don’t offer enough in return, it’s going to ruin your chances of success.
These motivating factors aren’t the only ones that can prevent your app from making money, but they are among the most common. If you need help putting together your initial business plan, or recovering an app that isn’t making money, be sure to contact me today!