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How do android based (free) applications make profit?

ThrottleWorks

Excel Ninja
Hi,

This is not related to excel so moderator please delete if required.

Recently I downloaded few of the free applications on my smartphone for personal use.

All these applications run fantastically, has excellent interface and absolutely free.

My doubt is, when the application maker is not charging me anything for this product how does he/she makes profit.

I am aware I have to buy if I need advanced versions but till then I am not paying anything.

For example, if I am using free version of Pedometer how does the developer recover its costs.
 
Usually, the bigger producer of revenue on those apps is through running ads. They get paid by an advertiser (e.g. Google ads) to let the ads show up on their app. The more users, the more people seeing the ads, and the more revenue they make.

Next form is through micro-transactions. This is when an app (e.g. Farmville) is free, but there are many ways for user to spend a small amount of money to get some sort of in-app item.

Last form is as you mentioned, through an upgrade. Sometimes this unlocks additional features, other times it removes the ads the were present due to option #1.
 
Hi Sachin ,

I think a possible reason is that programmers are intelligent people , who like showing off their intelligence !

After all , Android is a recent development ; free games have been available for the PC for decades ; I still remember being shocked by the intelligence built into the initial games. I wonder if anyone remembers a PC game called Facetrex , which I believe is one of its kind , even in today's age of MMORPGs.

Narayan
 
@NARAYANK991 Sir, thanks for the help. :)

You are correct Sir, off late I am using an application to track my daily expenses (forgot the name).

This application has so many features that too for free, makes me wonder why will someone pay if similar product is available with a cost attached.

The application provides daily, weekly, monthly summary with chart(s) and also has an option to send the details to my mail account as .csv.

And the advt turned on only when internet is switched on my cell !

PS - For those who do not know what "MMORPG" is (including myself). :p

https://en.wikipedia.org/wiki/Massively_multiplayer_online_role-playing_game
 
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I can't be totally sure to what extent this would be applicable but one way is through log data.

Basically what I mean is certain companies are interested in purchasing log data so see how users interact with certain softwares i.e. application usage.

For example:
1) Which features are used more
2) What type of softwares are used more
3) The demogrphaci of the users
etc.

Its essentially a way to do Market Research.

Most people would say this is illegal however lets be honest. Every application has a bit at the start where you Install & it asks you to Accept the terms & conditions etc. Easy enough to get the user to accept & then log the app usage
 
Hi @Hui Sir,thanks for the help .:)

It's a bit strange that these guys don't make profit and still we have many good free appications for daily use. . .
 
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