According to Statista, as of 2019, over 2 million apps were available for download on the Google Play store and 1.83 million apps on the Apple App Store. App development has become a popular money-making venture and there are apps for every industry–from gaming to travel.
However, just like businesses, not all apps make money–some make none at all. Therefore, you must develop an effective app monetization strategy before developing one. If you’re not sure about where to start, here are some tips.
Use a Subscription Method
Popular apps such as Netflix and music streaming platform Spotify have perfected the use of the subscription model. Spotify has a solid global subscriber base. The platform had 56 million monthly active users and 158 million premium subscribers at the end of the first quarter of 2021.
Its premium plans cost between $4.99 and $15.99, helping the platform to earn a lot of money. Build your app with this formula. For the subscription model to be effective, make your app free to download then charge a monthly fee to make money.
Use a Freemium Model
Apart from the subscription model, you can monetize your app using the freemium model. You can provide some app features for free and make users pay for a top-tier plan to access the full service. A multi-tier pricing model allows you to add extra features and make money. After users have seen how good your app is, they won’t be worried about spending their hard-earned cash.
Add In-App Purchases
The median cost for building an app is $171,450. If you’re short of money, you can search for auto title loans online and get a quick loan to speed up the process. With a great monetization strategy, your app will bring in good money and you’ll pay back the loan quickly.
Most apps make money through in-app ads, so you should try this strategy. If you already have an existing business and a website, you can add features to the app that allow users to purchase products directly.
In-app purchases earn a lot of revenue for most gaming apps. Users buy features or items that make their gaming experience much better. So, if you want to make good money with your app, incorporate paid features.
Advertise on Mobile
Mobile advertising is a big deal. According to the Interactive Advertising Bureau, in 2018, 65% of digital advertising earnings came from mobile platforms–apps, browsers, and text messages.
Most free apps have adverts. To get rid of the adverts, users have to pay a fee. Apps that offer in-app purchases also feature adverts for monetization. The good thing about app adverts is they help you make money without your customer having to pay.
An app needs a monetization strategy to make money. Before you even introduce it to the market, develop a pricing model to avoid making losses. The app-building niche has high returns if you adopt the right strategy.
Table of Contents