7 Best Strategies to Monetize Your Apps

The approach to creating income from a smartphone app without involving a download fee is called mobile app monetization. This procedure contains several strategies, like how some apps focus on a specific area of app monetization, some apps are more suitable to particular app monetization techniques than others, and some have numerous elements. Most of the users are very unwilling to pay for any application because of the day-by-day increase of free mobile apps in the digital ecosystem, whether it is gaming or any other app. Monetization involves multiple strategies because the developer needs to generate revenue from the app, which can be challenging unless the developer has funding for the app. App developers have distinct app monetization strategies like commercializing a user base to generate revenue from a mobile app, in-app advertising, in-app purchases, etc.

7 Strategies for App Monetization

STRATEGY 1: SUBSCRIPTION MODEL

The subscription model involves charging users a monthly or annual fee to use the app after they download it for free, and it is a very prevalent app monetization strategy. Many developers create free apps with a subscription model because, with this strategy, the app is free to download but users have limited access to the content or services the applications offer. The revenue generation from the subscription model made this strategy one of the most popular for an app publisher. It needs users to choose a subscription plan to access and enjoy the full benefits of the application. This app monetization strategy is commonly used by service-oriented apps or content-centric apps. This strategy is a great help for developers to create an initial user base and grow that user base into paid app subscribers. With this technique, the app can be easily found in the "free" app columns when users search for related content in the app stores. Some product owners have said that a subscription-based app monetization strategy has had a positive impact on their business by increasing their user base and revenue. The subscription model attracts free users, and it can keep those users engaged before turning them into paid ones. A subscription strategy should communicate the benefits by updating the app and continually offering new content and features to existing users.

STRATEGY 2: IN-APP PURCHASES

Offering in-app purchases is a great monetization method because in-app purchases allow users to use the money to buy features or items while using the app. In-app purchases can be introduced at any point by analyzing user behaviour in the app to monetize strategically. Also, the Google Play Store and iOS App Store have made the process of making in-app purchases extremely simple.

There are four categories of in-app purchases:

In-app purchases are a major source of revenue for gaming and non-gaming apps because they are very convenient for users and because they allow developers to offer a wide range of content and features for users to purchase. App developers use this monetization strategy to understand if its unique features and techniques are suitable. The in-app purchase feature should enhance the user experience and let customers interact directly with your product.

STRATEGY 3: PARTNERSHIP

The more popular the app is in the market, the more companies approach the app developer for partnership or sponsorship opportunities to get their brand in front of your app users. Some apps do not work with every app monetization strategy. Your apps can attract the same type of brands that have the same target user base, and that user base can help you monetize through brand sponsorship. Brand partnerships can seriously ease your monetization game. You just have to find a partner with a similar customer base who can enhance the experience of your users. A perfect partner can greatly help your consumers and your businesses.

STRATEGY 4: AFFILIATE MARKETING

Affiliate marketing is convincing your app's users to download other apps or purchase products. It is also a very widespread app monetization strategy where you can do affiliate marketing by partnering with other companies to market their products. Affiliate programs allow the insertion of specialized links in your content, and when users click on those links and purchase, you get a cut. Affiliate ads are used to convince users to download other apps, and you get paid whenever someone leaves the app after seeing an ad for another app and downloads that app. Affiliate marketing works best when you have a large audience that trusts your brand and content enough to follow your product and app recommendations.

STRATEGY 5: IN-APP ADVERTISEMENT

Digital advertising in mobile apps has enhanced communication between advertisers and consumers. The best-case scenario for your app is to make it free and utilize in-app advertising. Advertisers create ads that are used in apps and realize the value of mobile apps.

These are the five types of ads:

STRATEGY 6: SMS MARKETING

By collecting email addresses, you can send notifications for app updates, reminders, contests, and promotions directly to users' mail. This marketing strategy is a way to boost engagement in the app because it pushes users back to it. SMS messaging is used to gain and retain high-value users, so it can enhance customer engagement. It can target users who have not used the app for days or weeks and reactivate them to achieve an impressive response. SMS marketing can be an adequate way to reach out to users and offer them discounts on in-app purchases. SMS marketing is easy to implement and very effective at retaining users.

STRATEGY 7: FREEMIUM

The freemium app monetization model is a mixture of paid apps and app subscriptions such as in-app advertising. The freemium model offers some features for free but charges either a one-time fee or a regular subscription fee. The freemium model is scalable since it attracts a big user base by allowing users to test the software before buying it. This can help you generate income from users who would not otherwise pay for your app.

To Summarize

App monetization is important because the app needs revenue to grow, and the business model of apps is adjusted to reflect this. Developers change their revenue model to generate money. It is also crucial to take the time to design a strategy that ensures your users have a relatively good user experience with apps that generate revenue. Mobile app monetization affects the app experience, so it is as important as revenue maximization.