How do dApps Make Money?
dApps or decentralized applications are a trend of their own.
Though blockchain technology was created with the banking sector in focus, it has found applications in multiple business sectors. It has also started supplying plenty of use cases in the mobile space.
The dApp phenomenon has expanded to such proportions today that entrepreneurs from all over the world and across different industries are looking for dApp developers.
Did you know that it is possible to get into the Web 3.0 app development industry without learning how to code?
What is a decentralized app?
dApps or decentralized apps are programs that exist or run on a blockchain or peer-to-peer networks instead of on a single computer. They have similar functionality to traditional apps, except that they are not under the control of a single entity.
Apart from that, there are multiple features that define dApps. Let’s take a look:
- It should be open-source.
- It should operate on its own without any single entity controlling it.
- All data and records pertaining to your dApp must be public.
- The dApp must use a crypto token to keep the network secure.
When it began, the features or traits mentioned above were upheld quite strongly by the dApp community. However, as technology is evolving, so is the belief system. So, these features are not a mandate anymore, and most dApps may possess only some, a combination, or none of these and still function perfectly.
How to make a decentralized application?
There is a lot of complicated conversation and terminology surrounding dApp, from blockchain to web 3.0, NFTs to NFT marketplaces, and more.
Hence, it is natural to think that decentralized app development will be equally (if not more) complicated. Therefore, most small businesses and not so tech-savvy individuals are too intimidated by the thought of making one for themselves.
Appy Pie has one true mission to democratize technology by making it accessible and affordable to individuals and entities of varying budgets and skillsets.
Here is the quick and easy way to make your own decentralized app.
- Choose a name for your dApp
Give your dApp a name ( you can change it whenever you want) and choose the visual aspects of your dApp. Select a theme, layout, and other design elements. Now tweak the look of your dApp to make it perfect for your business.
- Pick the features that would work the best for your dApp
Once you are happy with the way your dApp looks, it is time to get into the practical aspects. From among the hundreds of useful features on Appy Pie’s no code Web 3 app maker, it is time to handpick the features which will work the best for your dApp goals and objectives.
- Test and launch your dApp
The next and the most critical step in dApp development is testing it for bugs and crashes. If you skimp on this step, you may encounter unpleasant surprises and dApp failures. Once you have done due application testing, it is time to launch it for your audience and gauge its performance in the real world.
How does this sound? Complicated? No, right? So, why wait? Let’s get going right now and start building your brand new dApp!
How do dApps make money?
You have worked on your dApp, tested and tweaked it to perfection, and your app users seem to love it!!! Now what? Now, you let your dApp work for you!
The fun part begins now – making money with your dApp!
While there has been a lot of discussion around mobile app monetization, little has been discussed about how dApps make money.
- Crowdsale and launching tokens
The most popular dApp business model is to fund it through crowdsale and back it with a token to go the bootstrap way. However, launching tokens requires you to look into the following.
- The primary functionality of your decentralized app
- Access to the network
- Distribute profit to the token holders
- Charge transaction fee
To monetize dApps, you can charge a certain percentage in the form of a transaction fee. Charging your dApp users for availing of your services is an effective way to earn money from your dApps.
How does this work?
Let’s say A buys something from B on your platform. As a service provider, you will then charge X% of the amount as the transaction fee. B, the seller then receives 100-X % of the amount.
Another important aspect of this entire process is the percentage you will charge as the transaction fee. For example, Cryptokitties charged a 3.75% transaction fee for each successful auction. Make sure that your percentage is not too high because, let’s face it, everything is open-source, and if you rub people the wrong way, they are going to copy your smart contracts and release their services in the market for a lower fee, or maybe even for free!
- Charge for premium functionality
Quite like the freemium model in mobile app monetization, the premium business model lets you, the service provider, offer basic services through your dApp for free. However, when your users want to use any of the more advanced or premium features, they will have to pay a premium fee.
For example, let’s say you have a gaming dApp where the objective of each level is to earn X coins. Also, as the game progresses and you keep leveling up, it becomes more difficult to conquer each level. You can offer your premium dApp users the ability to skip the laborious and time-consuming tasks for a premium fee and move ahead faster in the game.
- Offer subscriptions and membership
You can add the subscription functionality so that members can avail of your services in a recurrent fashion where they pay you a fee periodically (monthly, quarterly, or yearly) to continue using your dApp. You could also make the subscription usage-based, where the users will pay according to the consumption of the service.
- Run ads
Running ads on dApps may not be a very popular way to make money, but it is still a good way to go.
- Invite and accept donations
This is especially a great idea if your dApp has a social aspect. Simply add a donate button on your dApp and add a funding stream to sustain your app.
- Create digital products/collections
Create collectibles or digital products to sell to your users. This is a great way to keep your users invested in your offerings and add a revenue stream. Not only do these digital products help you earn money, but they also give you a great recall value among your users.
- Engage in referral marketing
We often associate referral marketing with eCommerce apps, primarily because referral marketing as a strategy played a big part in the success of eCommerce apps. However, this success can be replicated in the decentralized applications space as well.
Even at this nascent stage, there are multiple blockchain-based platforms that provide a link to promote their website. You get paid by them as per the clicks and traffic you can generate for them.
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In this blog, we have brought together eight effective strategies to earn money from dApp development. However, dApp development is not limited just to professional dApp developers. As a business owner, you can easily create your own dApp or a web 3 app without getting into any coding or complicated programming.
All you need to do is go to Appy Pie’s web 3 app maker and get going!
Have you ever made a dApp? Try making one without any coding with Appy Pie. Let us know of your amazing experience here in the comments section, or leave a review for us! I’d love to hear from you!
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