How Can a Smartphone Application Generate Money?

Extract

[...] How Can a Smartphone Application Generate Money? NiteLife(R) is an application I would like to develop for a broad array of smartphone operative systems. The app would mainly be targeted towards tourists and allow them to find all the nighttime entertainment venues in a certain range, such as nightclubs, bars, exhibition halls and theaters. Users would simply have to launch the application and it would scan the area and display the results on a map more or less quickly, depending on the customized on-screen venue number and range limit. [...]

[...] I would like to keep the application free. In order not to fill the screen with advertisements (which would add up to the loading time while users may be in haste), its costs should be fully covered by charging a fixed annual fee (about 400 euros) to establishments so they show in search results, as well as a fee on basic reservations (not applying to options). For example, if about 1,000 establishments in Europe an average of only 70 per country subscribe to this service in the first year of operation, we could expect a turnover of at least 400,000 euros before taxes. [...]