An app can serve different purposes: connect, inform, entertain, or introduce convenient functionality. With an idea that addresses people’s concerns and needs, you can create a product that potentially attracts millions.
However, the expertise necessary to produce a software application is not the only necessity. Your goal is likely to make money, which requires the right approach to your customers. Some apps have a natural inclination for some monetization strategies, arising from users’ positive reaction to them.
So, let’s see which monetization strategies suit your app the best.
No-code app development
Introducing an application has been a right reserved for professionals skilled in programming. However, even people with limited expertise in this field can turn their ideas into reality. This has become possible due to app builders, which serve pre-made templates that users customize based on their needs.
How to land your application at stores
You might have a product nearly ready for launch. In that case, you should submit it to Google Play or the Apple App Store. With Google Play, you need to follow these steps:
- Create an account at Google Play Console (one-time payment of $25) and Google Merchant.
- Fill out the form to add your application to the Google Play Store. This step also involves preparing your application for release. You can do this through Android Studio to generate an AAB (Android App Bundle) file.
- Prepare everything necessary, such as a privacy policy for your application, as Google requires these details.
- Upload your AAB file to Google, check if everything is correct, and publish.
The meaning of app monetization
Monetization is your approach to making money from something (such as a product, service, or even a YouTube video). But what is monetization in terms of apps? Similarly, it focuses on converting your app and its promised service into revenue for you.
You make money from people who download and use your app immediately or over time. While seemingly straightforward, app monetization requires in-depth knowledge of the market and users, as well as choosing strategies that don’t feel invasive.
6 approaches to take for monetization
As mentioned before, every app is different, and your competitors already shape users’ expectations regarding monetization. For example, streaming services traditionally opt for subscriptions, while mobile games are free or require one-time payments.
1. One-time payment
One-time payment monetization means users pay a set price before downloading the application. It’s suitable for general utility applications that offer a clear-cut advantage.
However, convincing users to purchase without trying out the application is challenging. Thus, it’s less adopted unless you can showcase apps’ substantial upfront value.
2. Freemium
The freemium monetization strategy focuses on attracting both free and paying customers. The app likely operates in two versions: limited and readily available as soon as users download it, and the other locked behind a subscription plan or a one-time payment.
However, this doesn’t mean the free version cannot generate money. Different in-app advertising strategies, such as banner, interstitial, affiliate, native, or reward ads, can be employed here.
3. Subscription
Subscriptions yield long-term relationships with clients and are highly suitable for various applications. However, getting people to commit takes some convincing, usually through free trials or money-back guarantees.
Additionally, businesses pursue those long-term users by offering discounts for yearly plans, making them more worthwhile than monthly subscriptions.
4. Paymium
Paymium refers to applications that require one-time payments to use the application. This will be enough for some users, but others can enhance the app functionality through additional purchases. Thus, paymium introduces in-app purchases to an already paid application.
It’s crucial to showcase the value of purchasing the app and later upgrading its features. Since users have already paid for the application, they might feel less motivated to continue purchasing unless convinced of increased value.
5. Free
Free applications make it easier to convince users to download them. App monetization also starts after users install the app.
You can consider ads, in-app purchases, affiliate marketing, ethical data monetization, or sponsorships. Typically, free applications combine multiple monetization strategies. The perk is that most users of free apps have grown accustomed to things like ads (consider rewarded apps for additional engagement).
6. In-app purchases
In-app purchases mean you make money when people buy features or other components for your app. Of course, this approach is widespread among mobile games (and games in general).
However, users are disappointed when the app is too dependent on them committing to a purchase. The key is that the app should be fully functional without payment, but the experience is elevated if users decide to spend some funds.
How to choose the monetization path for you
Selecting the monetization with the highest potential for your business comes down to the following factors:
- You know your app the best. Thus, research which strategies work best with your application type, and which receive the best reactions/conversions from users.
- Your competitors are the leading examples of how to implement monetization for your app. Look at the most successful applications and learn from them.
- Remember that you don’t need to pick just one app monetization strategy. Hybrid models combine multiple ones, giving you more revenue options.
- Monetization might be the goal, but don’t let it take the spotlight. User experience drives your app further; without it, you simply see people refusing to return to your application.
Building and retaining user relationships
Mobile app marketing is just as critical for your success. It consists of several stages:
- Getting users aware of your product. This stage can include running promotions for your application. Furthermore, ASO (App Store Optimization) can help your app rank higher in stores, giving your app more visibility whenever people use related keywords.
- Having users explore your product and its capabilities, and convincing them to get it. Additionally, it relates to app presentation, such as eye-catching app icons, descriptions, explanations, etc. For more engagement, create demo videos revealing app usage and interface.
- After getting users, retaining them for as long as possible is crucial. This goal consists of keeping customers happy with the features they receive. Furthermore, it’s vital to stay updated with the latest changes in the market (like matching competitors with new features). Besides that, retaining users could relate to offering fast and helpful support, creating online communities, and boosting engagement through push notifications and email marketing.
Conclusion
App monetization is relevant for anyone interested in releasing a digital or physical product. The proper selection can make your users more inclined to spend money (or more of it), while others could demotivate them.
So, don’t blindly embrace inevitable monetization only because it is widely used. Your final selection highly depends on your app type and target audience.
