Creating an app that users appreciate brings it one step closer to success. The next step is using an effective monetization model. In simple terms, monetization refers to the method through which the app creator earns revenue from its users. If you want to monetize your app, we suggest reading this mobile app monetization strategy guide written by Topflightapps.
However, not all monetization strategies might work for you. One must design a monetization model that yields the best results. This article will help you find the best monetization model for your app.
Best App monetization strategies
There was a time in 2008 when the only method to earn revenue from an app was through pay-to-download. But as time passed, more strategies to get revenue have been introduced. It has helped the app creators to select a method that gives optimum results.
In this monetization method, we can sell digital products. Commonly referred to as IAP, this method is widely used in numerous apps. IAP includes paying to unlock all the app features, block ads, or purchase in-app currency. IAP is one of the best methods of app monetization, irrespective of the kind of app.
The only drawback is that in-app purchases are subjected to refunds. It means that if a person makes an accidental purchase, then it has to be refunded. The best way to avoid this problem is by using a UI that does not allow unintentional purchases.
Subscription monetization is when users need to pay a fixed price weekly, monthly, or yearly to enjoy additional features like blocking ads, downloading content, and more. Spotify, iTunes are some apps that use this model of monetization.
It is ideal for apps that are continuously introducing new and useful features. The best way to motivate users to buy a subscription is by offering free trials, allowing more flexible features like three days or weekly subscriptions, etc.
However, when one customer decides to unsubscribe, one cannot offer a counter suggestion to convince the user to keep his subscriptions.
Paid business model
This model is providing two versions of the same app, one free and the other paid. The free app is like a trial app that the users can use for a limited time and with limited features. To use the app entirely, users need to download the paid app.
The tricky part here is deciding what should be the price of the paid app. So, it is best for apps that keep adding new features. If you have created the app for a particular segment of people, it can be hard to build interest in the first-time user in buying the paid version.
In-app advertisements are the third most popular monetization model. There are numerous methods you can incorporate ads in your app through banners, videos, and interactive apps. However, one needs to ensure that the user-activity tracking is done appropriately; otherwise, the ads will not be efficient.
Most free applications like Spotify, Instagram, Pinterest, and many other apps use this model. Although, it is recommended to add other in-app purchases along with advertisements.
Best Monetization models for Android or iOS
Compared to iOS, Android has a humongous market share of approximately 75 percent, but Apple is still ahead in producing revenue. This might make one concentrate more on monetizing in the Apple store. But, you can maximize the revenue if the app works on both platforms.
Monetization Model for Android apps
The most obvious and straightforward monetization model is by using in-app advertisements. Moreover, one great advantage that Android has that, unlike iOS, Google allows more freedom in payment options in in-app purchases. With this, the user can make the payment via their credit cards, outside Google Play, allowing greater flexibility.
Monetization Model for iOS
For iOS apps, the recommended monetization model is in-app purchases and subscriptions. In case you want to use advertisements, one thing to keep in mind is to know when to show advertisements and how frequently. This is because Apple users are used to an interference-free and premium experience that cannot be maintained with ads.
Deciding on the monetization model can be a demanding task. However, doing extensive research and developing a strategy based on the trends will help you find a strategy that can provide a favorable result for your app.