What is the best business model for your app?

Make the most out of your app!

Business model

In our consultations the most often asked is: What subscription model should I choose? Which one suits my business? Which one works the most effectively?


We made a short summary about the subscription models to support you in making your decision.


Freemium model

Freemium means your user can access the app for free. The app allows influencers/content creators to integrate content, ads & product placements to generate revenue for you & for your sponsors and affiliates.

Content

  • PR articles. You can create entire blog posts and publish on your app
  • You can add product placement with pictures within any type of content. - Blog posts, challenges, recipes description or headlines.

Ads

  • Embedded in content: ads can appear in the flow of a blogpost with picture & link.
  • Pop up: We can integrate specific popups


As in old times marketing mix, use the right dosage of the tools above to create visibility for the brands sponsoring you. It is important that your users understand nothing is for free so you have certain brands you promote on your app. We suggest connecting sponsors (influencer marketing deals) or ads to a freemium, so when users are using your app you still make money with.


Freemium-Premium model

As the title shows this is a mix of the Freemium and Premium model, so you can provide free access to your app with integrated ads, but the users will also have the possibility to purchase a subscription and see more content and/or use the app ad-free.


If you chose a subscription model you need to be sure:

  • You have features & content your user can explore & use for a long period of time.
  • You target a specific user group who has a specific need you can answer.
  • You have enough followers, you will convert about 2-4% of your followers.


When you work with a subscription based model, you need to update your content on a regular basis or have features people need on a daily basis.


Subscription pricing

First you need to decide about the period of a subscription. 1 month, 3 months, 6 months, 1 year. Then understand your followers, how much they are ready to pay. All in all the price of your app really depends on the power of the content.


Package model

Packages are one time fees. They can be used with a freemium model or added to a subscription as additional content/feature.


Packages

These are contents which can be sold once. Special educational video content, challenge programs to change habits, recipes & special meal plans can be part of that. You can target a specific user base & sell them a package. The content of the packages are available only after placing an in app purchase.


Teaser content

Teaser content is used to give some freemium content to user to decide after if they are interested to buy the package. Teaser content can be a few blog post, video, recipes, meal plans, etc.


Package pricing

It really depends on your content & features you offer. This can be from 2 figures number even to 3-4 figures one. We suggest researching a bit before & make some tests with your users. Package pricing should always play with discounts & promotions.


In essence

Choosing the right business model that suits your app the best is a pivot and a question to think about from the very first steps of planning, but don't let this scare you. We are always happy to consult, plan and find the right solution!

















By Zsofia Michelin 17 Nov, 2022
I said no way to TikTok . Usually, I don’t use social media for my own purposes, I believe it is quite a waste of time. So, my usual habit is to go through FB and Insta for personal purposes 2-3 times a week to keep myself updated. For my business this is a different story. Our company and our brand are such that we can afford social media people , and I hang on their advice. And their advice is this: leaving out TikTok is a big mistake. I resisted, as I resisted Instagram. The Happy hormone The truth is our target audience uses social media. They are content consumers; they need interactions and inspiration. Social media releases dopamine. dopamine is the happy hormone, making them feel good about life. So, they seek positive interactions and stories from social media. Today's best tool for this purpose is TikTok. TikTok is hacking the brain and helps to produce more dopamine. That is why people who start to use it become addicted . One of my friends is selling a cheese board on Amazon, and she was asking me what type of video she should put on TikTok. I suggested to her that she should let her dog eat all the cheese from one board or something like that. Of course, this was half joke, half honest All those cat & dog videos are popular because they make people laugh and feel good. They increase sympathy towards the animal, empathy, and love. That is what TikTok is doing to the people. You still can grow fast With TikTok’s exposure algorithms , good content can reach 10,000 people in a few hours or sometimes less than an hour, creating huge visibility . TikTok provides a full screen experience, but what exactly does that mean? No ads are displayed on the side of the users’ screens, which means they can focus on your content with all their attention , as it won’t be led in other directions. This is something that makes TikTok unique and outstanding among social media platforms. If your main revenue comes from influencer marketing and you plan to promote products, then this is the place to be. You’ll have high conversion rates and huge exposure numbers. And, if the time comes when TikTok will be overcrowded, you are safe, because you’ll be well established. My age, your age? Some people say to me that my target audience isn’t using TikTok. These people are too young. That might be true, however the person who is 16-25 today and a big TikTok consumer will be 20-35 soon. Then they’ll be your target audience. Also, building an audience doesn’t happen in a month. So, if you start to build on TikTok now, in 2 years you’ll have a big crowd as an influencer. This is an investment for the future . Best video editing software My daughter isn’t allowed to use TikTok. She’s 12. The truth is she’s not allowed to watch any content, but she is using the video creator . Then I realized that even though she promised she wouldn’t watch videos on TikTok, she was still watching TikToks on YouTube! Clearly, TikTok isn’t just a social media platform, but a very good tool to create simple, digestible content .
By Zsofia Michelin 20 Oct, 2022
Is it worth it? Many times - from our potential clients – we’ve heard the following phrases: “I would like to build my own app." "I am a recipe creator/blogger/nutritionist and I have a great app idea." "I’m going to hire some programmers and build my own app...” Although it might be a good idea to build your own app let me share with you my story. Hopefully you can learn from it...
By Zsofia Michelin 30 Sep, 2022
It takes us only 2 weeks to create an app. After that, adding your content can generate new revenue. Before doing so, it is important to plan the right business model and consider how to sell your app to your follower base. We have worked with several clients in the industry and can say that not everything works and selecting the right business model is crucial for generating significant revenue. Subscription/Ads/ One-time fee One option is to combine a subscription or ads with a one-time fee. Ads can be annoying, but you can generate more income if you combine a freemium-premium model. Connect an ad platform with your app and offer a low-fee monthly subscription. This gives users the option to have a freemium version or pay for a premium version without ads. This generates double the revenue. Trial combined with Premium Another option is to offer a trial period combined with a premium model. This allows users to test your app before paying for it. This business model only works if you have personalized content or a high-value training program. The downside of this model is that users only pay when they are highly committed, and the app is important to them. Simple Premium A simple premium model is to show the value of your app and offer freebies without giving access to the app. Users should be convinced that they want the app before downloading it. At the time of download, they should be sure that the app will be beneficial to them. It can also be helpful to try to convince users to buy a longer subscription than just one month. Premium with 100% guarantee pay back Another effective model is the premium model with a 100% guarantee of payment. People like guarantees, and while there is no trial period, the guarantee allows users to ask for their money back, which is usually less than 0.1%. One-time fee A one-time fee model can also work well. You can sell the app for a one-time fee and offer extra content for additional payments. Based on our clients' stats, we have found that the best model is the premium model with a 100% guarantee of payment and a 6-month or 1-year subscription period. The price range for this model is between $19 and $59 for a yearly subscription fee.
By Zsofia Michelin 11 Aug, 2022
The first Wasabi restaurant opened its doors in 2004 in Budapest and has experienced uninterrupted success since then. The growth of this restaurant chain is impressive, with 25 locations across the country. The Wasabi Restaurant is a pioneer in providing accurate information about nutrition and allergens to customers. They were the first restaurant chain in Hungary to start using our spin-off product, called RestoGuide. The PRO side of RestoGuide is a user-friendly web-based platform where restaurants can manage their recipes, menus, and create dish collections with automatically calculated nutrition and allergen data. It also includes the option to print the recipes to PDF. The RestoGuide app complements the PRO side by providing a social aspect for restaurant customers. The app allows guests to search for specific foods and check reviews of dishes and restaurants. It also provides nutrition and allergen data for the foods. The RestoGuide was developed with the input of chefs, dietitians, and IT professionals and was designed with the best practices and functionalities in mind. As a result, it is an exceptional software for restaurant management.
By Zsofia Michelin 11 Aug, 2022
"Tyson & Blake is pleased to announce our investment in The Mealplanner Technologies, a Finnish start-up with an operational team in Budapest, Hungary. Over the past year, we have worked closely with the Mealplanner Executive team and board to understand their business, which combines platform technology and nutritional expertise to build healthtech, foodtech, and wellness solutions.  The company helps people with chronic diseases manage their diet through engaging educational content and recipes, while also allowing them to track their food intake. It also offers white labelling opportunities for restaurants, food delivery, coaches, and vloggers. We support The Mealplanner's vision of making it easier for people to make more informed decisions about their diet in an easy-to-use and engaging format, and we look forward to helping them on their journey," said Mark O'Dwyer, CEO of Tyson & Blake.
By Zsofia Michelin 10 Aug, 2022
Our spin-off, Mira Health, has acquired the largest Hungarian Facebook group with over 44,000 followers. Insulin resistance is the gateway to diabetes and many other diet-related chronic diseases. Managing this condition through diet is crucial. The Mira Health app helps insulin resistance (IR) patients manage their diet , offers specific meal plans, recipes, and educational content, and helps track their carbohydrate intake. The purpose of owning the Facebook group is to start a pilot program in Hungary to support IR patients who are currently trying to advise each other without any professional knowledge, just based on their own experiences. We hope to achieve a 10-20% conversion rate with our pilot campaign.
By Zsofia Michelin 10 Aug, 2022
An app allows for collection of more data and better design of offerings
By Zsofia Michelin 21 Feb, 2021
In the past 5 years, as the influencer business has grown dramatically, we have also seen a shift in how readers/users consume content. There are two important trends to consider when you are in the content creation business: 1. Instead of reading, people quickly scan through content Few people will read a 2-page article unless it is very interesting. If a blog post is about preparing a pie crust, readers will immediately go to the recipe. If they are unsure about the preparation, they will look at the pictures you include in the post. But reading through long text? No way! Therefore, hiding product names for promotion in the text is almost useless. 2. Video creation has become easier When it comes to video and vlog content, people no longer care about the quality. They want to see real people in real situations. You can have a low budget and a one-man camera show, and they will still love you if the content is authentic and reflects real life. Therefore, starting to create video content might be a good idea. We see many content creators who had a great 5-figure income in the past but are now losing their user base because of the increasing number of new entrants with fresh video content. People are not loyal. If they see something greater, funnier, or more admirable, they will turn their back on you. If you stay lazy and think that the same ad revenue will continue to flow in, you are making a mistake. If you see a stable decline in your ad revenue, it is time to act before it is too late. Change your content, refresh your website, and create an app. There are thousands of cooking videos available now. There are also many training programs on the web for losing weight, building muscle, increasing focus, and becoming a minimalist. People browse through these options, but how can you keep them loyal? How can you ensure that they check your newest content and see your sponsors' ads? Having your own app is a great way to do this. Create an app while you still have a user base to convert. Make your app simple with relevant content. Analyze your readers/users and share easy-to-digest content. If you are in the food blogging or recipe business, just share your recipes, create meal plans, and add recipe videos shot in your kitchen. If you are in the fitness or wellness industry, create programs that help change wrong habits and support changes. Make changes in people's lives directly, and they will honor it with loyalty and referrals.
By Zsofia Michelin 21 Feb, 2021
Step 1: Check your existing content and decide what you can move to an app. This could include recipes, e-book content, blog posts, meal plans, training programs, or other things. Consider what features your users might appreciate, such as a shopping list, tracking, or messaging. Step 2: Decide what you want to offer for free and what business model you want to use, whether it be a monthly subscription or one-time fees. Step 3: Review your content and create new material as needed. Step 4: Plan your marketing campaign for your existing followers and user base, as well as to acquire new followers. Step 5: Review your brand elements, including your logo and colors. Once you have completed these steps, you are well on your way to launching your app. With a base of 100,000 followers, you can expect anywhere from 500-1000 subscriptions, which can steadily grow over time. Don't miss this opportunity, as it can easily bring in a few thousand dollars per month. We have a client who had 10,000 e-book sales previously, but when she launched her app, she made $30,000 with her first campaign!
By Zsofia Michelin 21 Feb, 2021
We always talk about user engagement in terms of likes, comments, and shares. But it's also important to consider how we engage with our followers. Are we offering only static or automated content, or are we willing to do more? It's easy to think that creating content in a "black cave" and then sharing it is enough. We can go to Hawaii and live off the ad revenue. But in today's world, there are millions of static pieces of content on the web. Users want more - they want support and care. One of our clients is very successful because she responds to all of the questions and comments she receives, and even has a direct messaging feature in her app.
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