In most cases, the end goal of every app publisher (apart from having fun while building their product) is to monetize their mobile app, right? Monetizing apps is not that easy. It’s a challenging step in the business planning process and it requires a lot of thought in order to make sure you choose the monetization strategy that best fits your specific mobile application.
This blog post will guide you through the most common monetization strategies for mobile apps. We really hope that by the end of this reading you will be able to answer the question: How I am going to monetize my app?
Monetizing apps: what are the options?
Opt for a Freemium plan
This is one of the best ways to attract new users and increase both customers acquisition and retention rates. With a Freemium plan, you basically allow users to have free access to a set of basic features within your product. That way, customers will have the chance to start browsing your app, familiarize with your service and learn about all the advanced capabilities they would be able to use by upgrading their plan (usually a Premium or Business paid plan). In a few words, with this monetization strategy, you offer something for free to build an interest in your product and then push users to upgrade their plan in order to access all the cool features.
Embrace a Subscription strategy
For content based mobile apps, the Subscription plan is equivalent to the Freemium plan for product based apps. With this monetization strategy, you ensure your users a free access to some of your content, but you ask them to subscribe to a paid plan to gain access to more content.
Display Advertising within your app
Similarly to the Freemium Plan, this monetization strategy keeps the app download completely free. Revenue will be generated by selling data previously collected from your app users to advertisers willing to publish targeted ads within your app. This strategy can help you monetize your app in a very easy and fast way, but make sure you are not overdoing it: avoid bombarding users with ads and keep the risk of app churn as low as possible.
Sell something (in-app purchases)
If you plan to build an m-commerce, then your app revenue will be strictly depending on the amount of sales you are going to make. This is the most intuitive of monetization strategies.
Opt for a paid download
If you think your app has a really unique selling point and provides users with very special features/services (advanced capabilities that none of your competitors provide) you might decide to ask people to pay for your app. User acquisition is going to be very challenging if you choose this monetization strategy, but if you put all your efforts into massive marketing campaigns you will hack your business to success.
In conclusion, monetizing apps is possible via different strategies. Finding out the most appropriate strategy for your mobile app can be very easy, provided that you have clear in mind the design of the app you are building and who is going to be your target audience.