Want to know the best monetization strategies for your App? You are at the right place.
Developing apps is a tough job. You have to focus a lot of time, effort, and resources on your work. But how do you bear the fruits of your labor? By getting paid, of course.
For that, you need to monetize your app with services like Google Admob or Infatica, which is the best monetizing option for android app developers, provided you adhere to Google’s Monetization Policies for Publishers.
Well, monetizing an app isn’t an easy task. But with the right approaches, you can get the optimal result of all the hard work and efforts you’ve put into building your app, service, or a local business.
Best Monetization Strategies for Your App:
Broadly speaking, there are 5 different ways you can get paid from your app. Not all the ways are applicable to everyone, as it varies according to the type of the app. We will discuss them one by one, in detail. Check them out.
The Paid App Model:
You develop an app, set a price, and publish it to the Google Play Store. People buy it, and you earn money. Sounds quite simple, right? This works best for reputed developers and large franchises of apps that people already trust. But if you’re just publishing your first app, or your work is not well-known, this might not be the best option for you. However, that doesn’t mean you cannot make people buy your paid app.
The paid model is good to go if you are targeting people who love to spend money at once to get the full app experience without any in-app purchases. For a paid app to be successful, you need to position it to offer a premium experience through outstanding design, functionality, and marketing. Developers showcase their app’s title, icon, description, preview, screenshots, and other marketing communications to feature the premium aspects of their app.
The Free App Model:
In this one, you simply publish your app as a free app on the Play Store and run ads on it. By removing the price barrier, you increase the likelihood that users in your target market will try and download it. This can help raise awareness for your app and grow your user base. Do not worry about earning; this is a good apk monetization strategy. Most of the app developers opt for this option only.
The money will be generated based on the number of clicks your ad gets. A higher number of clicks equals more amount of money you’ll earn. But this is not the most effective way of monetizing your app, as your users might get annoyed with the ads. This could also lead to negative reviews on the Play Store, which is terrible for business. Nonetheless, if you are going the ad way, you should show ads relevant to your users and stay away from intrusive and low-quality ads, which reduce engagements.
The Freemium Model:
This is perhaps the most feasible and widely-used apk monetization model in the app industry. You list your app as free on the Play Store. However, your app comes with the option of in-app purchases. Users will have the ability to purchase various features of your app, or perhaps unlock new ones by paying real money. Now, of course, Google will cut its share of the money, but this approach is the most profitable one.
The ultimate goal of a freemium model is to provide an excellent experience regardless of whether they spend money on buying anything from inside your app. But again, if you develop an app that serves its purpose, you are bound to get loyal users who buy you a coffee or pay for other in-app stuff.
Types of Freemium Models:
- Apps with premium upgrades: Here, you can put up some unique additional features as a paid bundle inside your app. It can be an add-on or some add-free experience.
- Apps with subscription model: Here, you can offer some extra features on a subscription basis. Users can pay you monthly or yearly to access those features. It can be cloud storage or an exclusive perks section of your app for members.
- Apps and Games with consumable items: This works best for games where users can purchase in-game items like gems or coins or lives. It can be used once, and are deleted afterward. However, a user may decide to buy again if needed.
These are the ways developers can use a Freemium model on their app or game to gain some money.
The Paymium Model:
This is a combination of the paid and freemium model, which involves users paying for your app to download it and also have the option for additional in-app purchases. For this to be successfully implemented, developers have to offer premium design, functionality, and content, plus advanced features intended to complement the experience.
Well, this is quite hard to upsell, because you are already gaining customers who have paid to buy the app or game. They don’t usually expect to spend more. If you cannot implement it properly, it can cause a negative experience and may affect sales, retention, and reputation.
The Subscription Model:
We already talked about how you can implement a subscription model as a part of the paid model for your app. It is a monthly subscription you can charge from your users to offer them original content, services, tools, etc. for a fixed amount of time till the end of the subscription period.
Google also provides you with the ability of auto-renewable subscriptions. At the end of each subscription cycle, the subscription will automatically renew until a user chooses to end it. This model can offer in-app purchases that provide users with a wide variety of service levels and durations to meet their needs best.
As with the freemium model, developers should focus on retaining users by providing app updates that continually improve the app experience with feature enhancements or expanded content regularly.
Many services, such as Microsoft Office, Spotify, and Netflix, are thriving because of this revenue model. Recurring revenue models such as this one leads to higher revenues and stronger customer relationships.
As a publisher, your prima facie should be focusing on the development of your application and making the user experience as well as the content better for your audience. Your monetization strategies will only work if there are enough users of your product.
Also, you should continue experimenting. Set up A/B experiments with your traffic and you will be able to find out which strategy works best for you. Remember, everything is based on experiments. Your approach should be what works best for you.
So, these are different types of ways you can use to monetize your app. Let me know which one worked for you.
Thanks for reading. If you have any further queries, let me know in the comments below. I will be happy to help. Also, don’t forget to share this with your friends. I will be back soon with another exciting update. Keep visiting HiTricks.