App Monetization Strategies
Many people have a lot of goals for their apps and one of a common goal is to create a cool and stunning app that helps people as well. And it is all related, create a stunning user experience and attract millions of satisfied and happy customers. And not to miss, make a lot of money as well. And not to worry there are many ways to monetize your app. So, the question comes is which is the most suitable way for you. In this blog we will cover various app monetization strategies.
- Freemium Model.
Freemium Mobile apps are free to download apps. It seems strange when we try to figure out how can an app that is free to download or requires no money to download, can make money. So, when you look into it, you understand that any user can access the basic functionality of the app by downloading the free version, while some of the advanced functions are locked and can be unlocked by making a purchase.
Approximately 94% of apps follow this free app business model.
If you as a starting business, are looking forward to grow as a large user base then this strategy is an effective way to grow.
- Premium Model
Premium apps are exact opposite of the freemium apps. In the premium model you charge the price for buying app. And the upfront revenue earned with every download and faster profits is a compelling reason to choose a premium model.
Not only that but paid apps are generally more loyal and have higher user engagement.
- In-App Purchases
In-App purchases are one of the best sources of mobile app revenue. They allow users to buy content, services, or special features (like some sort of booster that might reduce a personâ€™s time)
One more thing to understand is that if you try to integrate in-app purchases, make sure that they complement the user experience rather than disrupting or degrading it. And whenever integrating them the users should know that even though the app is free to download there are in-app purchases that they can avail.
Another thing, the in-app purchase model goes well with the freemium model, because on a premium model they already have paid and they might get a feeling of being over charged for everything.
- In-App Advertising
By removing the barrier to pay for buying the app, app that use in-app advertising look to attract a large enough user base and gather sufficient information about them to place highly targeted ads for advertisers. Also, the in-app ads perform 11X better than normal banner ads, with a higher click-through rate of around 152%.
Through out the course of monetization of an app, there might be people who are hesitant to buy. There might be people who get confused in the â€˜buyâ€™ and â€˜donâ€™t buyâ€™. So, there is a solution to that problem, by providing a subscription. How subscription helps is it offers a variety of services and some features at a lower price for a limited amount of time, which would allow users to gain trust and later upsell higher subscriptions.
So, after getting an idea of various ways to monetize an app, you can now decide which method suits you the best.