Ideas are perennial, but they come to life when we turn them into a practical happening, and the best part is to make something profitable out of them.
Creating an app has been revolving as an idea to many people out there, but the place where we step up is when it becomes profitable.
Reading this, a question pops up, isn’t it? How do we do it, i.e., HOW TO MONETIZE AN APP? So, here we are to guide you in a better way.
The first step essential to monetize an app is analysis. A mobile is always incomplete without an APP, but not all apps are either being recognized or being used, so we analyze the needs of the user.
There are two smart monetization strategies which are direct monetization and indirect monetization.
Monetizing apps always have various methodologies. To summarize, we have the six main methods that are being followed maximum.
- Paid Downloads: This is the simplest way of earning money which is all about charging the users fee for downloading. According to a study in 2020, the majority of the paid apps cost less than 1$. The advantage is, the more you command, the more you earn, but there is a negative part of everything. We should ensure that the cost is compatible with what we deliver.
- In-App Purchases: The in-application buys adaptation model can be utilized for both free and paid applications. Downloading a free app will attract considerably more users at the start and increase their app usage. For example, In Gaming app clients playing a portable gaming application could go through cash to open another vehicle, weapon, guide, or something like that. Though the app is loved by many, some will never purchase anything, so there will be a revenue fluctuation.
- Memberships: Subscriptions are a brilliant method to create repeating income with an application. Clients need to pursue a membership once, and they’ll keep on getting charged routinely until they physically drop the membership. Subscription apps are mostly built every month, and you can also set up annual or quarterly billing cycles. To attract more, we can offer a better monthly rate for a more extended subscription. For Example, An excellent subscription-based app, called Pep Talks, was recently built using Build Fire’s platform. App users pay a monthly fee to receive motivational words delivered to their devices via push notification daily.
- Freemium Model: The term “freemium” comes from combining the words “free” and “premium, which insists on the straightforward method of it. To make it clear, it’s the mix of subscriptions and in-app purchases. These subscriptions provide you with recurring revenue; not unpredictable one-off buys. But, ensure that it’s continuously updated with fresh and relevant content. For example, have a look at the Pandora app Subscriptions.
- Advertisements: Ad revenue is a viral app monetization strategy. This is a medium where we can reach a broad platform of people. Ensure that the ads don’t intrude on the user’s experience where people may abandon the app altogether.
- Product extension: This is an excellent method to generate revenue for your product, service, or business, but the money won’t be tied directly to actions within the app itself. It gives a free allowance for specific apps if subscribed to this. For example, Quick Books, which is paid software, has an advantage. The person who has subscribed for that is allowed to use the iOS and Android mobile app for free.
App monetization is not that difficult, where making money becomes comfortable in this case.
This may be a complicated one for others, and you would have got clarity from this guide. The thing is just don’t be overwhelmed with too many monetization models.
Thus, utilize this guide as an asset for the other processes.
Reference and Research By : Moazzam is a digital enthusiast writer having 10+ experiences in digital industry. His publications are live on Hackernoon, E27.co, Yourstory and more. Currently heading digital marketing at TechIngenious a group of mobile app developers in Jaipur, website development, software development and digital marketing services backed with skilled app developers and marketers.