Your business finally has it – the best-suited mobile app created just for your business.
With this excellent mobile app, your customers can now effectively interact with you while you can use the data from the app to try new ways of marketing your brand.
But there’s something else, and more that you can do: mobile app monetization. Monetizing your mobile app will make it even better for your business
A business mobile app can do much more than just a tool and turn into a sound source of income.
So, here’s everything you need to know about the benefits of mobile app monetization, along with the five strategies to monetize your app.
Let’s get going.
Receive proposals from top app development agencies. It’s free.GET PROPOSALS
Agency description goes here
Agency description goes here
Agency description goes here
What is Mobile App Monetization?
Mobile app monetization involves the process in which a business can leverage its user base to earn money from their mobile app. However, making revenue just by developing and launching a mobile application is not as easy and uncomplicated as it appears.
More than 2.5 million and 1.8 million apps are available on Google Play and Apple’s App Store, respectively. In such a scenario, it is essential to launch apps that users instantly relate to and fall in love with. Selecting the right monetization strategy to convert these users is equally essential.
The strategies can be varied because there are several options such as paid apps, advertising, in-app purchases, and so on. Whether you are looking forward to monetizing your app or optimizing the mobile app ROI from an already successful app, this guide will discuss the best strategies to accomplish your goals.
Get connected with the right iPhone app development agency.FIND THEM HERE
5 Best App Monetization Strategies
Depending on the various app models, there are five important mobile app monetization strategies for businesses to consider:
1. The Free and Paid App Versions Model
This is one of the most common mobile app marketing strategies out there. This requires businesses to offer both free and paid versions of the app. In this approach, the developers will either monetize the free app with in-app advertising or limit some of the features of the free app to motivate the free app users to upgrade to the paid app.
There are two distinct advantages of this strategy. One is that it provides a free option for users, allowing them to experience and enjoy the app's basic functionality free of cost. Second, the app developers get an expanding user base for potential monetization via in-app advertising or app upgrades.
2. The Free App with In-App Purchases Model
In-app purchase is another popular mobile app monetization strategy. In this model, the app with its basic features is free. However, if and when users decide to advance in the app faster, for instance, getting extra lives in a gaming app, they have to enter the pay-to-play model.
Ideally, some of the premium features or functionality of the app require investment from the users. In some cases, they can enjoy the parts free of cost, but they have to wait for the features to be unlocked. In most instances, such options would not be available.
Using this model/strategy, the app developers will only make certain features for free and keep the rest obtainable through in-app purchases.
3. The Free App with Subscription Model
Some mobile app developers prefer to create free apps with a subscription model. In this model, the app is free to download, but the access to the offered content and services is limited. This strategy suits service-oriented business apps or content-centric spaces.
Users, therefore, need to opt for a subscription plan to enjoy comprehensive benefits. This approach enables the app to be easily discovered in the app stores, especially when users search for related content.
The strategy with this model is first to build an initial user base and, going forward, cultivate that user base to turn them into paid app subscribers.
4. The Paid App Model
Productivity apps most commonly use this monetization strategy. This model requires the business and the mobile app developers to make the apps available only in the paid version. These apps usually offer unique value that is difficult for users to find elsewhere.
Businesses choosing this strategy must ensure promising enough value or some unique functionality that perfectly meets the specific needs of the users. Otherwise, the company will have a tough time creating the user base to generate revenue for your app.
5. The Partnership Model
Suppose an app is quite popular among a specific niche market. In that case, organizations can approach the app developer, looking for potential sponsorship opportunities to let the brand reach out to the app users.
Using the strategy, developers can keep the target user base in mind while planning the next app to build per their app development guide. This way, the app will attract the type of brands interested in the specific target audience. If this user base is considerably large, monetization through acquisition, partnership and brand sponsorship become possible.
Get connected with the right app development agency for your project.GET STARTED
How to Monetize Your App: Best Practices to Follow
Apart from the strategies, there are a few best practices that businesses need to focus on while monetizing their mobile app. These are:
Focus on the Experience
User experience is the most crucial point, and your app must protect it at all costs. If the user experience is damaged, your monetization attempt is damaged too.
There are two ways of doing this. First, by keeping the user experience clean and in case it needs to be managed, handling it in a way that the impact is minimal. The other way is to actively increase engagement. Improved engagement leads to more time spent on the app, leading to greater monetization.
Bringing in New Users
You will need to keep investing in acquiring more users to scale monetization. There will always be some user churning, regardless of which, businesses have to seek new users to grow the monetization drive actively.
Hybrid App Monetization
It is recommended to adopt multiple app monetization methods. One of the best practices for monetizing an app is implementing one alongside the other. You just need to ensure doing this is not harming the user experience in any possible way.
Analytics and Measurement
Measuring monetization and optimizing and adapting at the same time are crucial aspects of any app monetization strategy.
Businesses need to ensure that the monetization partner can offer in-depth insights on users, geography, and revenue. Using the relevant data is of utmost importance in fine-tuning the monetization strategy.
The changes in the policy of the major app platforms can change the strategy overnight. So, keeping up to date with such changes is an indispensable practice.
An excellent example of this is how many apps altered their approach to monetization with the decision to reduce the commission on app subscriptions.
Every app should be unique. Something that works for one app might not work at all for another. To maintain uniqueness, developers must test methods before fully implementing them. The differences between the apps should be emphasized when looking at use cases and statistics.
Monetize Your App: Importance & Benefits
Many businesses, despite being aware of the mobile app monetization strategies, are not sure of whether to monetize and use paid apps. But the reality is that paid marketing is the only way to scale the distribution of a mobile app and make it successful amidst a lot of competition.
So, here are some of the primary advantages of paid apps you need to look into before monetizing your app:
- Paid apps generate higher revenue, keeping the user experience intact, at times, improving it for the better
- Even low-risk monetization methods lead to high profits, especially in terms of digital currency, which, in turn, supports partnerships and affiliate programs
- In-app purchases do not require storage or maintenance
- Users of paid apps are more loyal and engaged due to their upfront investment
- Paid apps generate constant money, either through monthly subscriptions or fixed fees
- Paid apps are of undeniably better quality
Mobile App Monetization Takeaway
So, now that you know all the advantages of mobile app monetization and the strategies and best practices of monetizing an app, it is time to decide. Whether you charge for your app or keep it free, ensure that you have considered all the essential arguments.
The most significant point for businesses is to understand how to successfully utilize both free and paid monetization models for the desired success.
We’ll find qualified mobile app development agencies for your project, for free.GET STARTED