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Business model and marketing strategy

6 tough questions on app business models and strategies

[VisionMobile’s Andreas Pappas was recently quizzed on app business models, best practices and strategies for developers and entrepreneurs. In this post we’re presenting the most interesting questions and answers from this interview. These are tough questions that all developers and entrepreneurs are faced with in the early stages of their ventures.]

Q1: I am thinking of developing my own mobile app: What are the main business models I can use to make money and how do I select the right one for my idea?

There are numerous factors to take into account when developing your business model but the two key questions you have to ask are:

  1. What problem am I trying to solve?
  2. How am I solving this problem?

Once you have answered these two questions, you will be in a much better position to develop a business model. A good place to start from is the, a simple tool that outlines the key areas that a business model needs to address.

A number of areas within your business model are interdependent. For example, your target market will initially be defined by the problem you are solving. Once you have identified your target market you can start thinking about revenue models, marketing, partnerships, distribution etc.

Advertising most popular revenue modelWhile it helps to get everything right the first time, it is most likely that you will need to adapt both your product and your business model several times along the way.

From an economics perspective, a large number of successful business models these days are built on two-sided networks and even multi-sided networks. These are usually services that connect businesses to consumers or consumers to consumers, such as, for example AirBnB and eBay type services. These models exhibit powerful network effects if they manage to scale up and allow owners to monetise either one side of the network (e.g. consumers or businesses) or both (e.g. commission-based) depending on the application.

When it comes to making money, there is a variety of revenue models available and the selection is to some extent dependant on your business model, competition, target market, and exit strategy. There is no one-size-fits-all solution here.

Free services can scale up quickly but monetisation may be problematic. So if your business plan requires scale, think about indirect income sources such as advertising or even VC funding, to get you through the growth phase. Once you’ve achieved scale, an exit is an option you should consider: user acquisition is expensive and larger businesses will frequently opt for acquisitions rather than organic growth.

Advertising may be profitable but requires massive scale and even then, getting it right is tricky. Advertising is more popular on Android and WP than on iOS, due to the fact that Android users are not as heavy spenders as iOS users.

Obviously app-stores allow developers to monetise their apps directly, via paid downloads or in-app purchases. The latter has become increasingly popular, particularly on iOS and competes favourably against paid-downloads.

Network Marketing

by mirmirs

Hey,
you should look into network marketing also called direct selling. This buisness model is actually very popular and successful, the problem is the bad seeds in the buisness give the whole area a bad rep. The strategy is to do extensive research on the business. Companies like Avon are very popular as well as Pre-Paid Legal--which is a company i got involved with. If you do your research you are able to tell the schemes from the real things. They are essensially home based business franchises. Its great because you pay a fee at the beginning (in most cases its a very small amount--again something to tell the good from the bad) and then you get access to an already establish business

Seattle-Home of REI and Eddie Bauer

by AnyHandleInAStorm

Back in the day, great sources of utilitarian clothing and recreational gear that lasted.
Have an REI coop membership card with a low number on it, but don’t have first-hand knowledge of REI for the last 15-10 years aside from noting that they have a mega disney store on the edge of South Lake Union.
But I quit shopping at Eddie Bauer because I was being harassed.
Used to shop at EB for functional clothing with classic styling that lasted over time. Always good.
Then EB modified it’s business strategy in several ways, and all at the same time:
1

Information is power

by 45645636che2536577

Capella Education Company Announces Targeted Layoffs in Support of 2012 Strategy
MINNEAPOLIS--(BUSINESS WIRE)--Nov. 15, 2011-- Capella Education Company (NASDAQ:CPLA), a provider of online post-secondary education through its wholly owned subsidiary Capella University, today announced a targeted workforce reduction in line with its 2012 strategy to extend its brand and increase learner success. Capella faculty will not be directly impacted by this change.
“We are transitioning to a new brand-driven marketing strategy which is less reliant on third party marketing efforts. This shift has left us with excess capacity in specific frontline areas and the need to recalibrate marketing skills to fit our new model,” said Kevin Gilligan, chairman and chief executive officer of Capella Education Company

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Seafood park proposed to meet demands  — FIS
Further project objectives are to stress successful business models, address supply chain and infrastructure related issues, increase income levels of fishermen by linking them with demand side of the food chain and provide a platform for industry ..

Doing God's work in a Capitalist World  — Forbes India
Every morning in the African bush there wakes a gazelle, looks at the morning sun and thinks, “How am I going to outrun the fastest lion?” That same morning rises a lion, looks at the same sun and thinks, ” Will I be able to outrun the slowest gazelle?”.

More than €500m needed to repair water system  — The Nationalist
.. and paying it back," said Gerry Grant, Head of Asset Management at Irish Water. "That is the model that both ESB and Bord Gáis use to invest in their infrastructure.

New Metro-North rail schedule riles some commuters  — Middletown Press
An agency spokesman did not immediately respond to a request for comment. Ridership has doubled on the Waterbury line, according to Gildea and Anders. “Successful business models invest in their product first, realizing customers will follow,” Gildea said.

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