When it comes to generating income from your mobile app, there are many routes you can take. In this article, we will look at five popular app monetization strategies and discuss their potential impact on engagement and growth.
Free and Paid App Versions Model
One popular app monetization strategy is to offer both free and paid versions of your mobile app. By utilizing this approach, app developers will either limit specific features within the free app in order to motivate the app user to upgrade to the paid version or monetize the free app with in-app advertising. In-app advertising was the preferred monetization model in 2019.
The benefits of this strategy are never-ending. On one hand, it provides a free option for users to experience the basic functionality of the app at zero cost. On the other hand, it also provides the app developer a growing user base for potential monetization via in-app advertising or app upgrades. On Android’s Google Play Store, almost 97% of apps were freely available.
Free App with In-App Purchases Model
A very popular monetization strategy is to utilize in-app purchases or IAP. With this approach, the app itself, and usually its basic features, are free. However, if app users would like to make the most out of their app experience, say extra lives in a gaming app, then they enter the pay-to-play world.
In some situations, users can still get access to premium functionality without paying. If they use the app frequently enough, they can unlock certain features. In other cases, such options won’t be available and the app developers would only make certain features free, and others only obtainable by making in-app purchases.
Free App with Subscription Model
Some developers create apps with subscription models. With this model, the app is made free to download with limited access to the services or content that is offered. The app requires users to opt into some sort of subscription plan in order to reap the full benefits. This app monetization strategy is usually seen among service-oriented apps, such as meditation app Headspace, or content-centric apps such as mobile news apps. Using this approach is great for developers to accumulate an initial user base and cultivate those consumers into paid app subscribers.
Paid App Model
In some cases, developers can make their app only available in the paid version. Usually, these apps offer a one-of-a-kind user experience that’s hard to find elsewhere. Unique apps call for unique designs and flows, and industry-leading app developers such as The App Bros make sure to make every opportunity count when working on your app creation. The paid app monetization strategy is commonly used among productivity apps, such as SQRL App. When going this route, the apps you create should provide significant value or unique functionality that meets the user’s needs.
Partnership Model
If an app is popular among a certain niche market, companies in that area may approach the app developer for sponsorship opportunities to expose your app users to their brand.
So when you’re thinking of creating your next app, you can also consider the target user base the app may attract and the types of brands that may be interested in that audience. If that user base is large enough, monetization through partnership, sponsorship, or acquisition can be a good option.
The App Bros
Want to generate income from your app? The App Bros can help.
The App Bros pride themselves on developing both Android and iOS apps that garner maximum downloads on Google Play and the App Store. From conceptualization to launch, we utilize the best UX/UI designers, app architects, and software engineers.
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