5 app monetization strategies that always work
Are you familiar with the principles of business? Take a good guess. Yes, it’s all about making MONEY! As an entrepreneur, you need to coexist with others in a competitive environment where customer create a special niche for your product or service.
Any business that wishes to stay viable must invest in practices that produce a profit. So it’s back to the basics- business 101. Here is a quick refresher.
1. Be a leader and employ the best staff that supports your ambitions
2. Develop a business plan
3. Offer unique products or services
4. Create a marketing plan
5. Provide exceptional customer service
6. Enhance the sales process
7. Generate a profit
8. Enjoy yourself
These strategies can be applied to every aspect of the business, and your app is no different.
What is app monetization?
It's precisely what it sounds like. It is a way to generate revenue from an app. Since people spend a great deal of time using their smartphones, companies are investing in creating apps to cater to their needs. It provides the opportunity to reach a wider audience. So as a business owner, what could be an easier way to make money?
Do you see dollar signs yet? It’s time to capitalize on the potential of your brand’s mobile app. If you are having doubts about how you’ll be able to charge users for using your app and still make a profit, you definitely need to read on.
Effective ways to monetize your app
Wouldn’t it be wonderful if you launched your app and money just magically started flowing in? Well, it’s not quite that simple. First off, you need to design an effective app that draws traffic and engages the users. 19% of apps don’t generate any revenue. Therefore it’s imperative that you employ the services of a reliable and experienced app developer like AppVertical that can manage multiple aspects of your app.
There are currently several ways that you can monetize your app. Here are some strategies you can explore to determine which is best for you.
1. Pay per download
It’s a straightforward concept. To use the app, consumers will need to pay a one-time fee to download it. So your revenue is directly correlated with the number of apps that are downloaded. A paid app may seem like a way to scare off customers especially since, in 2018 alone, 94% and 88% of the apps were free on Google Play and App Store respectively. Be prepared to face stiff competition from these freebies.
But don’t sweat it; people will download your app even if you ask them to pay. By converting searchers into users, you have a chance to maximize revenue right away. Customers tend to be more loyal to apps that they spend on. It’s all about implementing the right techniques. You need to focus on the following:
- Persuade people to try the app
- Provide customers with a great user experience
- Develop a great marketing plan
- The value of the app should equate to the price that customers are paying
- Provide better value than similar free apps on the market with enhanced UX, extra features, improved functionality, etc.
2. In-app purchases
There are ways to make money even if the app is initially downloaded for free. To get your app off the ground, you must provide valuable content so that users return to the app often. Substandard content or poor quality is a sure way to lose them. There are several in-app monetization methods, and providing products that can be purchased separately is one of them.
A majority of apps are free. But there are opportunities to purchase items within the app to improve UX, such as extra lives in a game, a one-time cheat to pass a level, additional services or products, etc. It’s also one way to boost a user’s loyalty. You should keep the following points in mind:
- The app must be functional without any purchases
- The purchase must deliver something of value to the user
- Encourage the user to return for further transactions
- As with paid apps, Google and Apple will take a percentage of your share
- Some customers may request refunds due to accidental purchases
These models offer free downloads but provide users with premium features that can be accessed after purchase. It’s a great way of attracting users with an initial free product alongside additional features that can enhance the experience.
The most significant advantage of implementing this strategy is that users have a chance to try the app before making a long-term commitment. You have the opportunity to take advantage of these benefits by:
- Providing a basic portion of the app for free that persuades users towards the premium part
- Delivering an engaging experience to promote positive reviews where revenue is linked to successful engagement
- Build trust with customers by providing quality and value
- Attract a large, active consumer base
Subscriptions focus on gating access rather than providing features through purchases. Users can use the basic app for a free trial but will be prompted to make payments through a subscription to continue using enhanced features of the app. This model offers developers the possibility of recurring revenue every time a subscription is renewed. It works best:
- When the app is oriented for news and entertainment (music, videos, movies, etc.)
- There is repeated and frequent use of the app
- Subscriptions remove interference from ads on the app
5. In-app advertising
You’ve all encountered in-app video ads. Mobile apps use in-app advertising for monetization more than any other method. App developers are constantly searching for new ways to attract a consumer's attention while keeping the app completely free. Users understand that this is the trade-off for not paying a penny to use an app. You can increase revenue by displaying relevant or valuable ads.
However, you must understand that there is a fine line between advertising and spamming. Employ the services of notable companies offering effective advertising solutions such as AirG Spam free services to start off on the right foot. Keep the following in mind:
- Ads can clutter the user interface, making it difficult to navigate.
- They may distract the user from making a purchase.
- They can reduce UX if the ads are displayed at the wrong time or wrong place.
- Disruptive tactics hurt your brand because consumers have learned to avoid clicking on spam links or malicious ads while browsing.
- Users may abandon the app.
Some popular ads you can implement to monetize your mobile app as follows:
It’s a quiet way to grab the user’s attention. By employing those ads that are relevant to your app, there is a greater possibility that users will click through them and increase your profits.
They appear in between pages, articles, levels, etc. as a display or a short video. The ad usually takes up the whole page and always has an ‘X’ to allow viewers a quick escape route.
They are customized for your app, so these ads flow with the overall look and feel. Native ads are positioned within the content of your app to enhance a user’s experience rather than distract.
Rewarded video ads
Users are encouraged to view video ads by providing an incentive, such as extra coins in a game.
But if you’re hoping to reel in substantial ROI from your mobile app, you should lay out a plan before launching it. What works for one may not necessarily work for another.
About Ashley Rosa: Ashley Rosa is a freelance writer and blogger. As writing is her passion that why she loves to write articles related to the latest trends in technology and sometimes on health-tech as well. She is crazy about chocolates. You can find her at twitter: @ashrosa2.