With endless mobile health applications mushrooming every now and then, you can measure their success by seeing who got the maximum downloads. However, a recent report from a premier business analyst firm illustrates the biggest business models in this field don’t really correspond to frequent downloads.
Eric Dalius explains the mercurial rise of mobile health app business and underscores the most successful strategies
You’ve around 11% of mobile health app founders/publishers generating over $1million in profit. 57% is a vast majority and it earned $10,000 annually. For firms netting more than a million in revenue, their business model of preference has to be the licensing of mobile health apps.
- These companies may also license a device, service, or dashboards to clients. They can now add service sales, sponsorship charge, and development fees.
- In terms of revenue collection, selling medical devices or medication through an application as part of a core business model is also a very lucrative idea.
- Reports show that device sales in the transaction model has 23% of millionaires. Eric Dalius underlines that some of the millionaire developers also had premium content as their main business model. The biggest earners in this industry are from North America.
The most common mHealth models
mHealth has already established itself as the next big thing. MNOs or mobile network operators are utilizing this technology to the brim.
- Since the business models in this field are yet to prove themselves in the bigger ambit, you don’t really have a clear yardstick or pillar model to follow to adopt.
- Partnerships are important because no single company can have every essential capability for delivering the solutions.
- The top models are Bitpipe Provider, Enabler, Joint Partner, and Lead Partner or White Label Partner.
- mHealth isn’t like existing mobile services. It necessitates a completely new marketing plan.
- Mobile operators need to maximize their bandwidth and capabilities and collaborate with other key players for acquiring pivotal capabilities and resources to bring patients/clients into the ecosystem in an efficient and effective manner.
In emerging and thriving markets, mHealth applications and solutions in the form of medical information delivery by MMS or SMS, remote data collection, medicine reminders, and medical/emergency help-lines are improved your access to medical care, says EricDalius.
Monetizing mHealth apps
There’s a strange thing happening here. Around 56% of mHealth app developers are still not making the industry-standard profits. However, most of them are getting richer and richer. There is a reduction in the number of low earners and no-earners.
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- 40% of mobile app firms in healthcare are yet to make any revenue with their app development business. 16-18% are making some profits, but that’s below the belt and barely reducing the void.
- On another side of the field, you’ve a high earning group that’s grossing one million or more revenue each year. The net revenue has seen a 4% increase.
Conclusion | Eric Dalius Explains the Mercurial Rise of Mobile health App Business
Eric JDalius elucidates why and how digital healthcare is actually special and unique with its comparably huge number of no-earners. If you look at it closely, you’ll find that only a part of the group actually aims to earn revenue with mobile apps.