The internet is a major communication technology, that helps us keep in touch with our friends and families from far far away much easier. We all know that this can be done via simple texts or voice calls. But what resembles real face to face communication, are video calls. In order to see if a video chat app can be profitable, you must first create a minimum viable product (MVP) of a video chat app.
For those of you who don’t know, a minimum viable product is a version of a product with just enough features to satisfy early users and get feedback for future development.
That’s why companies involved in the video chatting app development industry are so huge. Even though the concept is simple, apps such as Skype and Zoom have massively grown in popularity, and it almost feels like they’ve been around forever.
But there might be one question that’s stuck in your head. How did they grow so much based on such a simple concept? How do they actually earn money? After all, you’re most likely using them without paying a dime.
Well, we are here to answer that. Whether you’re just curious, or you’re looking to build something similar, here are some ways to monetize a video chat app.
The reason you don’t pay anything when using these apps is because of advertising. The developers are not focusing on making money directly off of you, but rather, they’re bringing food to the table by collaborating with other companies.
These companies that they collaborate with, see the video chatting apps as a great opportunity to advertise themselves since pretty much everybody is using them. There are many ways to charge companies for letting them put their ads on your platform.
For example, there is a cost per click, cost per mille, and cost per action. Cost per click is about charging advertisements whenever your users interact or click on the said ads.
Cost per mille is the cost that the advertiser pays for every 1.000 people that have an interaction with the ad.
And finally, cost per action means that the advertiser is charged whenever a user does what the company wants. Installing an app, or signing up for a newsletter, for example.
2. Offer Exclusive Features
Another great way to earn some money out of a video chat app is by offering some exclusive features that users will have access to once they paid for them.
Things such as a customizable background, extra emojis, or even filters can be put behind a paywall.
3. Paid Video Calls
For example, Zoom adopts this strategy. We all know that up to 100 people can hop on the same call at once. However, if you pay, you’re allowed to hold a call with a much larger group, up to 500 people.
Skype does the same thing. If you need something specific, like screen sharing on a mobile device or live transcription and translation, Skype offers you these features, but at a cost.