What’s your purpose for developing and releasing a mobile app? For some, you might want to gain some traction in your industry by raising brand awareness, but we all have one common goal—making a profit. But let’s not get ahead of ourselves. It would be wise to think of the different ways you can capitalize on your project.
There are numerous proven ways mobile apps can begin raking in the green. Today, we’ll discuss the top five ways to make your app earn you a living. Please keep in mind that no single monetization model is 100% foolproof, so it can take some trial and error before you find the model that best suits you and your users’ needs.
1 | Pay to Download
Perhaps the simplest way to capitalize on your app is to force users to pay before downloading your app on Google Play and App Store. There’s a huge upside to this model—you begin making money when someone taps the download button. However, Google takes 15% off the top per download for the first $1 million, and the App Store takes a consistent 30%.
Is this model worth it? Ask yourself: were you willing to spend $3.99 on an app that you haven’t used yet? Most of your target audience might be unwilling to shell out cash, especially if your competitors offer a free version of theirs. This is the most sensible business model in the sense that you get paid for what you make, but looking solely at the numbers, that might not be the case.
2 | Free and Premium Versions
The freemium model is what you’ll encounter most of the time when scrolling through Google Play and App Store. In short, you offer both free and premium/paid-for versions of your app. While first-time users get to download and use your app for free, functionality is limited. The tremendous upside is that you can reach a broader market with your “free” app.
But let’s address the elephant in the room: will people pay for premium content? Builfire’s statistics show that only a tiny percentage actually pays. However, there’s another revenue-generating strategy you can implement in the freemium model, which we’ll cover next.
3| In-App Advertising
In-app ads are pretty annoying, right? As infuriating as they are to look at or watch, users know that it’s a small price to pay for content that your mobile app offers free of charge. And the best part is that every time an ad appears, you, the app developer, get paid.
So, how do you go about implementing in-app ads in your mobile app? You could rely on monetization agencies and ad networks, or you could opt to work hand-in-hand with a supply-side platform (SSP). The main benefit of choosing an SSP is that you are in control of the monetization process. SPPs provide their users with all analytics and optimization settings, which helps developers monetize their apps independently and without paying additional fees to intermediaries.
4 | In-App Purchasing
In-app purchasing is another widely used money-making strategy for mobile app developers, especially in the gaming sphere. Users pay to purchase unique aesthetics (skins, weapon models, accessories) or additional resources. Over the years, in-app purchases have become one of the greatest sources of income for game developing companies.
But the main question is: what incentive does your paid-for content offer to users when they can enjoy the same or similar content without spending a single cent? The trick is to find the perfect balance between paid and free resources.
5 | Subscription-Based
Why not put your app up for free? Don’t have your users spend any money to download and use your app. Let them enjoy all of its content absolutely free of charge… for a limited time.
Subscription-based apps lure users in by offering free, sometimes ad-free, content to their users for a specific timeframe. When it expires, your users will be asked to pay to gain unlimited access to your app for, yet again, a limited time (monthly, yearly, etc.). If you subscribe to Spotify or Netflix (in the past), then you probably know what we mean.
The primary reason for making your app subscription-based is to generate stable income. Over time, as your user count grows, your app can create enough money for you to live comfortably. Obviously, people will only pass subscription-based apps if they provide a meaningful service, so think carefully before settling on this monetization strategy.
Ready to Start Making Money with Your Mobile App?
While planning your next app development project, you should think about your target user and what appeals to them most. This is usually more than enough information to determine which of the monetization above strategies will work best for your app. Remember: many of these strategies are not mutually exclusive. Feel free to combine two or more of them and slowly shift away from the non-money-making strategy if necessary.
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