Business plan & expansion possibilities

Revenue

My application will be free to download which means it will need to use a different method to gain revenue, the method that I have chosen to use will be to advertise via an ad Banner at the top of the screen, this method could generate a lot of revenue for my app but this would depend on the amount of usage in which my app receives.

Information taken from an article titled 'How to make money with apps: Part 1

http://www.placeplay.com/how-to-make-money-with-apps-1/

A common question from app developers is: how much money can I make with banner ads? The answer, of course, is it varies.  For simplicity sake, we have provided an example with the following assumptions:

• 10k daily active users (60% US, 40% WW) 
• Banner ads on all screens
• 6 minute average session time (60k minutes/day)
• Integrate PlacePlay for US & Admob for WW

In this scenario, an app developer can expect to make approximately $7,300 per month using mobile banner advertising. Mobile banner advertising can help app developers make a meaningful amount of money; but, like any form of app monetization it requires users. The more users of your app, the more money your app will generate with banner advertising.

Obviously using this method of gaining revenue will compromise the screen space, although I feel as if this is an easy compromise for the predicted return. The user may not like that there is an ad banner on the screen which is why they will have the option to pay to get it removed, this would cost the user a small fee.

Another way to make profit on the application would be to offer extra content to the user, this could be in the form of new scenarios, extra decisions and extra story-lines. The user would have to pay for certain content to be downloaded which will contribute to extra revenue for the app.

Certain campaigns such a the drinkaware campaign would be willing to pay to put there name/logo on the app if the application became popular enough, government run organizations would be more than happy to pay for the rights if it is for a good reason and enough people are benefiting from the advantages of the app.

Expansion

There is a lot of room for expansion and franchising of this app, as there are a lot more issues that the app could concentrate on for example;

• Quit smoking
• Sexual health
• Cancer awareness
• Drug awareness

This would mean that the users that enjoyed using this drink awareness app would download 'Sister apps' as they already know it would be an app that they would enjoy using.

—