Statistics tell that by the end of 2017, Mobile App revenue will reach as high as $76.52 Billion, comprising paid app revenue of up-to $1.95 Billion and In app purchases up-to $28.9 Billion.
Reasons for building a Mobile App might vary from Passion, popularity, fun, utility, realization, need creation and many more, but wouldn’t it be great if your hard work paid off exactly what it deserves?
Let’s look the monetization strategies implemented by Mobile Developers to generate revenues for their Apps.
Apps that have to be bought by the users in order to be downloaded from the store. If paid app is not your thing then keep it to the cheapest like Rs. 50/- or 0.99 $
Example Apps: Automatic Call Recorder, Mind Games, Limbo, etc.,
Advantage: Direct cash earning for every download
Disadvantage: Users do not prefer buying apps as there might be a lot of similar apps freely available in the store.
Niche Premium Paid App:
App offering unique service and utilities like exam tips, medical apps, law related etc. are considered to be Niche Apps.
Example Apps: 4th grade science glossary, OSCE skills, etc.
Advantage: As it is provides Unique Service, users will find value would be interested to pay for these Apps.
Disadvantage: There is a tough competition in Niche apps too that offer their service for less money leading to no traction for users.
Alternative App Stores:
Google play store or App store are not the only stores for app developers, there are many other stores to display your app on.
Example Apps: Opera Mobile store, Amazon appstore, Samsung apps, LG smart world, SlideMe market, 360 Market etc,.
Advantage: Your monetization strategy of the paid/free application will have a wider reach by displaying it on multiple app stores.
Disadvantage: Maintaining the application on multiple stores is difficult and there is a risk of security on third party app stores.
Freemium method gives an opportunity for users to download the app and use it for free, but they cannot use the full features of the app without upgrading to the paid version.
Example Apps: Magisto, Headspace, etc,.
Advantage: This method makes initial user acquisition easy and helps in creating more loyal users.
Disadvantage: It is mostly suitable for games and there is a high probability that the users would not be willing to purchase the paid version due to the competitors free model or less priced model.
In App Advertising:
Most of the top mobile developers use in app advertising to monetize their applications. It is the most common and successful way of making money with an application.
Example Apps: Way2, Netflix, Color Switch etc,.
Advantage: This will have a wider reach and makes you earn money while the user is still using the app for free.
Disadvantage: This might compromise on the user experience as it will be disturbed due to the ads and videos displayed which might lead to uninstalls, bad reviews and fall in install rates.
In App Purchases:
This method lets you sell additional features/ content of the application to the users for availing the service in the application.
Example Apps: Barneys Bowlrama, Farmville, Clash of clans etc,.
Advantage: More chances of in app purchases happening.
Disadvantage: The users would not be willing to pay for the upgrades
Subscription is similar to in app purchase but only for a particular period of time, like purchasing the features or service of an app for a week/month/year to use.
Example Apps: Headspace, Saavn, Spotify etc,.
Advantage: It is a recurring income and will be profitable if the app services are good. It increases the ARPU and boost the long term engagement of the users.
Disadvantage: This method of app monetization hasn’t gained as much popularity as the other options have, so there are less chances to succeed in subscription method.
Mix And Match any of the strategies:
Most of the successful applications follow the blended approach of monetization. A combination of popular idea and revenue making idea gave the best result in all the top charted applications.
Advantage: It boosts the revenue potential and popularity.
Disadvantage: If not strategized properly they can lead to losses, uninstalls, bad reviews etc,.
There is a 9th way, which is DropX and ad network that uses its smart recommendation systems to help the users save money by displaying deals, coupons and price comparisons only when the user is purchasing something on the merchant apps like amazon, ebay etc., and whenever there is a transaction happening, you generate money. This way, you will not be displaying any advertisements that will annoy the users but instead, you will help them save money for which you will earn. Interested in knowing more? Register here http://www.getdropx.com/signup