With the rise of smartphones, many developers have started targeting the mobile devices. The Play Store and the Apple Store contains so many apps that if you start downloading and using each one of those, you will need many months to finish the process. The main reason behind such majestic size of the stores is the fact that the applications are easy to create thanks to endless gigabytes of training material available online and in the form of books.
Recently Apple has announced that since it launched in 2008, developers have earned over $70 billion from the App Store. However, many developers are finding it hard to Monetize their Applications. Mobile advertising is such a nightmare these years, with terribly low revenue and click-through rates crippling both commercial companies and indie developers. To help you, we are listing 11 monetizing methods for mobile apps and help you decide what will work for you.
This is one of the most sought after monetizing method for application. Other than being developer’s favorite method, this method makes the most money and converts easily (if it is really very helpful).
Popular with the free application, this method involves displaying advertisements within the application. When the users click on these adverts or even if they view adds, you mint some money (cents actually). Most of the developer allow users to make an in-app purchase (which is another method of monetization) and then display all the features available in the premium version. We can also include the (much-hated) notification adverts in this section.
This method allows the user to purchase some points or premium stuff from within the app. These purchases than can be used to enhance the experience of using the application in some way or the other. For example buying coins in a game app to upgrade guns and tanks.
This is a kind of monetization I avoid. Although many successful app builders have been able to do wonders with this kind of a solution, it involves double the work than other methods. You create and distribute an application for free for mobile phones but users have to pay a fixed amount to get access to the Web or Desktop app. The basic feature associated with such apps is the syncing of tasks or notes and other such data when accessing the app from different sources.
If you have a newsletter, push it through your app. There is nothing wrong with having an app that drives consumers to your website. It may not be the easiest thing to track, but it works. Remember that your app is just another leg of your brand chair. It does not have to survive on its own but does need to add value to your audience.
This is my favorite method of capturing fixed amount of money every month. Just like a magazine, people subscribe to see the content of your application on a weekly or monthly basis. For this method to work, content must be fresh, informative and helpful in day to day life.
This method works for the apps that have the ability to sell services. For example, if you create an application for air ticket booking you can earn huge money in commissions if people book tickets using your affiliate links. BUT one major problem with this app is that that it requires a lot of trust from users.
I think that having two versions of your app, a free/cheap version, and a paid version is important. It is part of the strategy of giving your customers a taste — a trial period to get a sense of all that your app can do — and then build from there. You want your customers to integrate this app into their lives and then realize they cannot live without it when it comes time to upgrade. Beefing up your upgrades is a big way to establish your product’s importance and value to your customers as well.
In this model, traction and growth are your main objective. You develop an application, get a good user base, and later sell it to the big venture at a good price. Instead of selling this to the enterprise, you can charge your users through above-mentioned models or can sell units of your app to advertisers as well. The perfect example of this model is Facebook.
There are moments when an app fails to create a mark in the market but its algorithm or research on the user base behavior is worthy. In such cases, you can sell off those to the enterprises. Also, you can either rent out or sell your infrastructure to the enterprises in order to get a return on the investment made on an app.
For start-ups reaching out to the maximum potential customers could be a difficult task since they have limited resource and money. In such cases, you can identify an established company and give them the authority to brand your app amongst their clients. You can charge those enterprises for doing so and can generate enough revenue.
Developing an app and maintaining it is an expensive affair. With app monetization, companies can reach the break-even point and sustain themselves in this competitive market. Above mentioned are some of the most popular models used by various companies for app monetization. Understand your requirement and choose the one that would fulfill your needs.
Different applications demand a different monetization model. While paid app model works excellent for Games, affiliate model will work like a charm for flight booking application. You just need to spend a little time thinking about the approach your users will have towards your application. For example, if you launch a train booking app under a paid app model, I will never spend a dime on such an app because I know there are a lot of free sources available. Now if the same application is provided for free, I will definitely use it to book my flight ticket and unknowingly generate income for you too.
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