Nine business models illustrated by the APP boom

The APP age is coming! It is estimated that the market scale will reach $15 billion this year, and everyone is looking at how such a huge emerging business opportunity can be shared.

However, if you think that the focus of the APP economy is only on the technical aspect, you will be wrong. Like other undertakings, we must first consider what is the right business model to maximize the commercial value of creativity and technology.

Some may ask if the App's business model is "charging" or "free but advertisement ?, Of course it is not that simple. I borrowed the saying from my ancestor that Taiji was born with two masters, and the four masters were born with eight hexagrams. Gossip can be turned into eight, sixty-fourteen hexagrams. Therefore, there are actually a variety of derivative combinations that are charged or free. These different combinations and changes are exactly how entrepreneurs and developers make profits.

Most of the articles discussing App economics are about comparison between Apple iOS and Google Android ecosystem, or vertical and in-depth analysis based on some successful cases, however, there are few extensive discussions on various APP business models, allowing entrepreneurs or developers to develop strategies based on their own resources and advantages.

However, it should be noted that the commercial model of the APP economy is definitely not limited to the following, because different business models can also be combined, divided, and reversed ..., So just like practicing kung fu, although basic tactics are very important, how to use them skillfully is the key to winning.

The following illustration of the business model is based on the book "popular products are created in this way" by Mr. banqiaowu of Edutainment Lab in Japan.

Basic Elements

To understand the business model, you can clearly understand it with illustrations. When drawing diagrams, we need to first define the various elements contained in the business model. This includes enterprises, individuals, payment for money, product or service provision, and time. By using these basic elements, you can combine and change various business models.

Next, we will introduce various business models that can be developed in the App economy. In the following illustration, a green enterprise refers to the App developer.

Illustration: The developer makes a profit by paying for the App

This should be the simplest model-developers make apps and sell them to users through App Store or Market. In this model, the key point is to make the unit price × sales revenue extremely big, and it seems like nonsense, but it is worth thinking that if an App is very useful to a specific group, but it may not be attractive to the public, so it should be set to $0.99, but it will not sell a few more. Instead, should we set the price higher, then, let people in need know this information through the correct publicity method. Although the sales volume is limited, the overall sales volume may be more favorable because the unit price is high enough. In addition, due to the high unit price, there will be space for discounts and promotions to further attract cost-sensitive consumers.

Mode 2: advertising Mode

Illustration: the user does not need to pay, and the advertiser pays the advertising fee to the developer, so the developer makes a profit.

This is also a relatively simple model. This figure is simplified, and the actual operation should be achieved between advertisers and developers using the two ad agency serving platforms Apple or Google. However, the profit of this model mainly depends on advertising. Therefore, we must increase the App downloads as much as possible. Therefore, if we can combine the services that users need, such as information or intelligence, the demand already exists, secondly, the advertising media combination effect will be more obvious.

Mode 3: Income combination mode ("leading chicken" Mode)

Illustration: users pay to purchase a number of apps developed by developers

This is an extension of the simple sales model, which means that one or two of the products are particularly cheap to attract consumers to the door, and then sell other products to them at the same time, it is like a real-life hypermarket usually has the so-called special price goods to attract consumers to the store for consumption, and the opportunity to buy other things to increase the turnover is the same principle. In the App field, the "leading chicken" and even the price can be $0 (used together with the "advertising model)

Mode 4: continuous release of the new feature model

Illustration: In addition to downloading the main App, users still pay for downloading additional features.

In addition to the main program, this refers to the continuous launch of additional paid download features such as new game scenarios or new filter effects of the Photo software, so that revenue can continue to grow. Similarly, you can make the cost of the main program $0 (with the advertising model), or use the psychological effect of the income combination model.

Mode 5: monthly rental

Illustration: users pay the amount to developers on a regular basis when they continue to use the App

As the name suggests, as long as users continue to use, they will pay regular fees over time. The deformation of this mode may not necessarily be the time, but the usage. Subscription content can also be used in this mode.

Mode 6: Secondary Application Mode

Illustration: App product A developed by A developer can be sold to some users after it is combined or modified to product B and then sold to another group of users.

Is it possible for a product or service to become another product after being combined or filtered? The most typical example in real life is that cartoon magazines regularly repeat their serialization to publish a single-row book. Therefore, when selling a magazine, they earn one more profit. In addition to content, this mode can also become a new feature in the App field. For example, after a game continues to launch a new scenario (the new feature mode is continuously released), it will launch a special price package after combining popular scenarios for a period of time, to attract another batch of customers that have not yet been downloaded.

Mode 7: Platform media integration mode

Illustration: the developer's App provides media integration users and enterprises. In addition to the App features, you can also borrow APIs from other websites or even user graph.

For example, the LBS service can develop such a model-the combination of local businesses and local consumers. For sellers, the platform media combination model may be more accurate than simply advertising, so they are even willing to invest more budget.

Mode 8: Development Mode

Illustration: developers are purely engaged in OEM development to help enterprises in need

This is also a simple model, that is, helping enterprises in need develop apps on their behalf. Although the revenue may be limited, it is a way to practice or maintain the fixed revenue of the Organization. We even have the opportunity to mix and match the above four models, five models, and six models.

Mode 9: Authorization Mode

Illustration: developers use content authorized by other content providers as APP content

Content and information do not have to be produced by the developer or can only be used for open content. You can also cooperate with other enterprises by obtaining authorization, this mode can also be used in combination with Mode 4, mode 5, and mode 6.

After finishing the above, do you want to start thinking about which business models can be used in your development? I am not a developer in various fields. do I find the resources or opportunities you can use in the App economy? As Lawrence mentioned in the article, this is not just an opportunity for technical developers. individuals or enterprises in different fields and resources have the opportunity to be in the App economic ecosystem, find your position and revenue.

Source: http://tech.qq.com/a/20120222/000362_2.htm

This is also a simple model, that is, helping enterprises in need develop apps on their behalf. Although the revenue may be limited, it is a way to practice or maintain the fixed revenue of the Organization. We even have the opportunity to mix and match the above four models, five models, and six models.

Mode 9: Authorization Mode

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