Do you have an app for your business? If yes then chances are you’ve spent a lot of time, effort and money on it. People are even downloading your app, but there isn’t any cash flow-yet.
While there are several ways of monetization, you need to choose the ones that are most suited for your app.
Being specific about how would you monetize from day one will allow you to understand whether your customers are ready to pay for the solutions you offer or not. And that’s an essential part of validating the mission of your app.
In this article, we have curated a list of some of the best ways of monetizing your mobile apps.
The Top Monetization Models
Have you ever heard of ‘’freemium mobile apps? You must have. The word is the combination of ‘free’ and ‘premium’ that is enough to make you understand the meaning of it.
It merely means that there are two versions of the app, one is free, and one is premium. The free one supports the essential functions, while the other one includes additional features that aren’t supported in the free version.
The idea behind the freemium models is that the users can enjoy the free version and become willing to pay for the extra features available in the premium version.
If you want to make this tactic work for your app, you need to make sure that the premium version is worth the penny.
In order to leverage it, you need to design both the packages carefully. The free one should be attractive enough to engage with the users and convince them to buy the premium package.
If you don’t want to launch a freemium version of your app but still wish to monetize it, this is the best option for you- include in-app purchases.
This is the most popular way of monetizing apps for both Android and iOS. The model works like, you the app for free, but some of the features are premium.
You must have come across many such games available on the app store that uses this model of monetization.
For example, apps like Candy Crush Saga, PubG, Subway Surfers, etc. use this model to monetize the apps.
One-Time Paid Apps
In this model, users need to pay for just once to download the app. Further updates and the addition of features will be free.
If you like this model, you would need to launch an app that is compelling enough to make the users buy it before even using it.
Also, there can’t be repeat revenue from the existing users. For a continuous revenue stream, you will need to keep looking for new customers.
But how would you determine whether your app can be paid one or not? Most paid apps provide you with the core functionalities in the first download only and then followed by updates or design and usability enhancements. Most of the utility apps come under this category.
Become An Affiliate
You can help other companies to generate revenue with the help of your app and earn commission in between.
In this model of monetization, advertisers show their ads within your app or run some promotional campaigns for the users of your app.
Now, when a business gets a lead through your app, you get a commission from this. While this is a common app monetization model, this is very much useful for games, as the users quickly respond to integrated campaigns to ads to get more points, benefits, or game currencies.
While there are several monetization options for apps, ads are the smartest way.
The most important this while using this strategy is that you put ads in such a way that the customer experience isn’t disrupted.
The best way to leverage this method is by collecting data about your users and then showing them the highly-targeted ads.
If you keep showing irrelevant ads to your customers, you might end up disrupting the entire experience and then finally losing the users.
Make sure that you show only the highly targeted ads and also at the right time.
Some Tips For Choosing The Best App Monetization Model For Your App
Define Your Business Goals
Any app has a business goal, which means it helps its users to solve some specific problems. Therefore, it’s essential to choose the monetization model as per your app’s goals.
Set Your Targeted Audience
You need to understand for whom you’re creating solutions. Have a clear picture of your targeted audience, which will allow you to build an app tailored according to their needs.
Research Your Competitors
Your competitors can be your best source of inspiration. Have a look at them and check what monetization methods are they using. And then finally modify their approach to create your strategy.
Don’t Over Use These Monetization Models
Yes, monetization is a crucial part, after all, money matters the most. But remember, your users or customers are your priority and bombarding them with a plethora of monetization strategies can make you look like a gold digger.
They will start feeling like they aren’t getting much value, and you’re to earn money here. Keet around 1-2 monetization strategies.
An app creator should always remember that apps can only bring profits as long as they are profiting the users.
Your users should be your priority; you need to focus on helping or entertaining them through your app. So try to keep your monetization strategy as subtle as possible.
While there are several ways of monetization, you need to choose the ones that go with your app’s goals.
The best way to keep the revenue stream continuous is by focusing on repetitive transactions from existing customers as much as finding new ones.
The lifetime value of your users will determine the success of your app. So what monetization model are you going to pick for your app?