Are you thinking about getting an app developed but stuck in thoughts about the revenue? That’s okay, there are thousands of people who are searching for app monetization strategies. Why?
With the technological growth and digitalization in the market, app development has become a kind of necessity. Whether your business is at the start-up stage or has grown beyond the limits – app development is a must.
According to Statista, there were 3.48 million Google Apps and 2.22 million Apple apps available for users to choose from in the year 2021.
However, before developing an app you should always figure out the mode of revenue.
- What monetary benefits will you get with the app development?
- How can you adapt that?
- And what difference will it make?
Before we start ahead with the app monetization strategies, let’s see what it is.
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What is App Monetization?
App monetization is generating income or revenue from the developed application with the help of techniques and strategies. Every application listed on the app store is earning revenue, yes, even if they are free to download and use.
Confused? Well, for example, take the PUBG mobile application. It is free for download and use, but it has in-app purchases. Yes, this is how the publisher or developer earns revenue from the app.
That was just an example. In the next section, you will read everything about the app monetization strategies. Shall we move ahead?
App Monetization Strategies
After analyzing the available statistics, we have rounded up these 5 best app monetization strategies. These techniques will help you in earning profit from the app development.
1. Paid App
One of the better ways to earn revenue from the app is to launch it as a paid application. For every download, you will earn a profit after giving the commissioned amount to the app store.
This isn’t the best one as it will decrease the number of downloads, and you will have to spend a lot of resources and finance on marketing.
In addition to that, very few people think about purchasing an app. The chances turn to zero when your competitor is providing the same application for free.
Still, if you provide a unique service or product, you can leverage a paid app’s benefit.
2. In-app Purchases
Another technique that can help you earn a profit is through in-app purchases. This technique is mostly used in mobile gaming applications. Just like the example, we elaborated in the above section about PUBG Mobile.
The users can see the in-app purchase tag near the name and install button. If you plan on allowing free downloading, make sure you have made the in-app purchases.
3. Freemium Model
Another most popular and the best tactic to earn revenue through your app is with the deployment of the freemium model. What is it? The most popular way is the subscription method!
If you develop an app with a freemium model, the user can download the application for free but has to pay to access the premium or advanced features. Shopping, entertainment, and educational applications prefer this model to generate revenue.
App developers are opting for the freemium model to leverage the benefit of user satisfaction and app monetization. According to The Verge, Google’s 98% revenue is through the freemium apps.
The easiest and preferred way of monetizing an app is through advertisement. How does it work? You get paid to display ads on your application. It can be banner ads, native, interstitial, playable ads, reworded video, direct play, and offer wall.
In-app advertising is the best option when you don’t want to add in-app purchases or any other charge to use the app. The ad will integrate into the application’s content smoothly without interrupting the user experience. (Depends on the app development!)
5. Transaction Commission and Sponsorship
This is the ideal strategy if you plan on developing a marketplace or app providing delivery and online transaction services. With every transaction, you will earn a certain amount of commission.
In short, you don’t have to have products to sell. Instead, you can sell someone else’s product and earn a profit from it.
Once the app is running successfully, brands might approach you for sponsorship. They may ask you to advertise their product on your app for better reach.
The 5 strategies mentioned in the article are not only the talk of the town but have also given the best revenue to many apps like Medium, Amazon, Uber, etc. What are you still waiting for? Hurry up and deploy any of these strategies or go with the hybrid option and start earning from the app.