Recurring revenue strategy, is a business model that allows you to generate multiple income streams so that you can earn even when you are not actively working!
With recurring revenue, you get to decide how often and how much work you need to put in, without putting a limit on your income. Don’t think of it as just a job – recurring revenue takes it a step further; it lets you build a real business.
To learn more, you may watch this video from well known coach Milana Leshinsky on how you can make the transition from a conventional job to having a recurring revenue business.
Mobile Apps A Recurring Revenue Tool
In the age of smartphones and mobile marketing, mobile apps have become an excellent income generation tool. App millionaires from around the world have proved that!
All of them were ordinary people who came-up with an extraordinary idea. Good news is the market is far from saturated. There’s still a lot of room for more. Here are the top three reasons why app development makes sense:
1. A Huge Market
The app markets across OS’s are filled with hundreds of thousands of apps, being used by millions of customers worldwide. So, there is a significant customer base and demand for mobile apps. According to a Canalys report, sale of apps, in-app purchases and subscriptions across smartphones and tablets could rake in up to $36.7 billion by 2015. Did you know that there are at least 70 different app stores across the various mobile platforms, manufacturers and carriers?
2. The Blue Eyed Boy Of Venture Capitalists
There is a lot of interest among venture capitalists to invest in mobile companies. VC investments in mobile marketing and advertising companies rose to $592 million in 2011, up from $128 million in 2010. VC investments also increased in the mobile commerce and payments as well as mobile health space during this period.
It’s not just because it’s the hottest trend – building mobile apps, even on multiple platforms, requires much less turnaround time that traditional PC-based software. And mobile apps tend to have more visibility over the numerous app stores than over the Internet in general.
3. Lucrative App Models
A 2010 Nielsen survey revealed that mobile users mostly use apps like Facebook, Google Maps and The Weather Channel. The most popular apps categories for smartphone users are games, news, maps, social networking, and music. If you’re looking to generate recurring revenue through mobile apps, you could concentrate your efforts in building apps in one or more of these categories.
The Challenges You Must Be Prepared For
Of course, there are significant challenges that you would encounter while entering the mobile apps space. The average cost of downloading an app has been steadily declining since January 2010 – and this corresponds to a possible decline in revenues from mobile apps.
Of course, the number of mobile users has significantly increased as well, but so has the competition in the app stores.
According to a study by Localytics conducted in January 2010, one in four mobile apps that is downloaded will not be used more than once.
Mobile app developers need to not only track the number of downloads to gauge the success of their apps, but also figure out a way to assess how long their apps continue to be used by people who download them.
Most importantly, in order to build a successful app, you need to understand your market and create an app that has the potential to engage them.
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