An app has always been a useful one in connecting with the customers. Without any doubt, smartphones have proved to be a highly engaging medium for connecting the customers. Apart from that, an app creates additional value.
Yes, there is a number of ways through which you can monetize your app.
Check this video to know how you can monetize your app in few easy steps:
https://www.youtube.com/watch?v=l-WIrPrnL7Q&t=2s
For that, you need to choose a monetization model. It is essential to develop a cost structure before you create your app. You are not required to offer all your products and services all at once. One of the most effective ways to gain more customers is to sell in parts, series or extensions of your products and services. This is a common practice followed by smart developers.
Monetization methods also include in-app purchases, freemium and ads. Various monetization model comes down with two options: attracting advertisers to pay indirectly via mobile ads or directly selling your app to the end users.
Let’s check out the best monetization methods for apps which the developers follow:
In-app ads are the best way to earn revenue because they come with an option of free app downloads without actually charging the users.
This is one of the best options for both the new and experienced app developers. As the users remain glued to the app, the developers collect valuable data, which they later use for analyzing the user base and connect with the advertisers.
In-App Purchase is a viable option for those who are selling their products and services through an app. Online retailers are now developing their own apps which are helping to gain good revenue from in-app e-commerce stores.
You don't need to run an e-commerce enterprise for implementing the in-app purchase in a particular app.
The affiliate/ sponsored model is mainly about forming partnerships with the interested advertisers, charities and brands for starting a reward-based model for the users. This type of apps attracts the users as they get rewards once they accomplish a task.
If you are new into the world of app development, then this monetization method may be a good option for you. The sponsor may also include advertisements in the app for generating awareness of all the products and services.
Premium or paid Android apps are generally not available as free downloads. For that, the users should get it from the store after paying a charge. The paid models require an innovative marketing proposition for persuading the users that they are paying for something worthy.
This task is not that simple, as people generally prefer downloading free apps. But that doesn’t mean that paid models are impossible. Few app ideas work better with the ad-free paid models, thus creating direct value for the users.
As the name suggests, the freemium apps are the combination of paid and free models. Here, the basic app is offered for free while asking for charges for unlocking and navigating the additional features.
Subscription and freemium apps are the effective ways of getting two different kinds of monetization model in a single app. The users who are highly interested will download the app for free and will be automatically motivated to unlock the extra features by paying a charge for it.
Planning to develop your monetization model? Go for it!
Do not limit yourself to a single option, as it will decrease the chances of your app’s success. Smart and experienced developers often opt for more than one model. By completing the trial process, they decide the best ones, and then they go for the mobile app development process.
So, while you develop your monetization models, focus on the general business model first. The model must include information about your target audience along with the product overview. Your money-making model should be intuitively instilled within the app idea and the user experience.
Swarnendu De is the Co-founder of Innofied Solution, an Award Winning Apps, and Game Development company. Founded in 2012, Innofied is one of the fastest growing Software Development companies headquartered at Kolkata, with an extended R&D center in Pune and a client proximity center in Sacramento, CA. Innofied also owns two award-winning products AllRide Apps and MCommerce Apps that helps transport and retail industry with competence. Here, Swarnendu manages the Technical and Business Development Operations at Innofied. With over 10 years of industry experience, Swarnendu has also authored Backbone.js Patterns and Best Practices, published by Packt Publishing, UK.