If you have had your big lightbulb moment you need to not only share it with the world in the form of a groundbreaking app but also be able to generate revenue from it.
It seems like every app is free and it’s hard to compete with that when you have a startup to run. Every app that you download, even if it seems free, is not, and we don’t just mean those in=app purchases and premium subscriptions, advertisements are a form of revenue-generating mechanism for apps as well. When it comes to how to make money from an app, there are plenty of monetization strategies that you choose from.
Contrary to popular belief there is no one size fits all apps ad template. Apps have to implement them differently. Some of the common ad types include banner ads, interstitial ads, native ads, affiliate ads, and reward ads.
This monetization technique is super easy to implement. The only downside to it is that in order to secure advertisers you need a broad audience that has downloaded your app. So this model is for those who are ready to wait a considerable amount of time before they can break even on what they have invested to create the app.
The Freemium App
Obviously, no one wants to pay for an app, especially if they are convinced they can get an alternative solution for free. So apps with the freemium or subscription model allow you to download it for free and use all of the app features for a certain period of time. After that, the app asks you to subscribe with payment.
Users who notice a direct benefit of the app do subscribe. This model works for services that have a key function such as offering daily content that you begin to rely on such as music, video streaming, and workout classes.
The best thing about this model is that the startup gets a steady stream of revenue and the best part is that you dont have to showcase ads to disrupt the user experience.
There are plenty of different ways you can use this model to make money with an app. You could sell a product or service via the app, or have a currency system that is purchased with real money.
This model works excellently with e-commerce apps, gaming apps, and marketplaces for various services.
If you do go ahead with this model remember that your goal becomes to engage users and scale your customer base. You won’t just need more downloads but also more active users.
This app monetization strategy depends on collaborating with different businesses and offering cross-promotions. In order for this to work you need a broad user base so as to attract lucrative partnerships.
The way it works is that you offer a reward to your user for completing an action. The reward can be a voucher from a local brand, and the action can be something like leaving a genuine review to add to your trusted platform that offers authentic ratings.
There is no hard or fast rule about how you go about your monetization strategy. You can always mix and match and get creative with how you engage your customer base and where your revenue is being generated from.
User experience defines the quality of your mobile app. It is easy for monetization to get in the way of this. You can always manage and reduce this by drafting a flawless strategy where every kink is ironed out.