Do you know that 2.8-million applications exist in the play store? All of these applications have unique features, identification, and authenticity that sets them apart from their competitors. While some applications are under the initiation process, other apps have reached the brink of their success. Statistics show the development of more than 6-thousand apps every day, and the percentage of monetized apps ranges to more than 25%.
What is app monetization? App monetization is a way for the app developer to generate income. Earlier, you had to pay for the applications to download. Now, you get free access to more than 90% of the apps in the market. So how does an app developer generate money? It is how several ways of monetization come in use. For this, you need to strategize the usage of apps and create smart techniques that will lead you to gather revenue without hindering the reach of your application.
What do you mean by a monetization strategy?
A monetization strategy refers to a way you can turn your idea into a business. As per the recent market surge, one fact is clear, that is, the reach of a free application is 100-times higher as compared to paid apps. But for a developer, it is a loss. They have spent hours and months and years over an application, they have spent their money, they have given their entire work to this application, and are getting nothing in return. So how should he make-up for this loss? They need to strategize or think of ways to make money out of it.
What are the five ways of monetizing an application?
We have selected some of the best methods that you can apply to monetize your application:
- The free plus paid app version model
this is one of the popular strategies that the application developer applies. In this case, the application is free to download, and the user can use fundamental features. But other attributes are limited to use as the consumer needs to pay for those features to get activated. In this model, you can also allow advertisements that will monetize your account as well.
The benefit of this model is two-fold. The first factor is that the users will get to enjoy the basic functionality of the application, and then encourage the customer to pay for upgraded or premium features. The other factor of importance is that through the advertisements promoted on your app, you get money on every click that occurs from the client whom you have allowed promoting on your apps. You can also use smart and inducing advertisements by offering them discounts or showing them features of your app that will convince them to get the upgraded version.
- The free app with an in purchase model
the in-purchase model or the IAP, the model in which the application itself and some features of the app are free to download, but you need to pay for premium features. For example, if it is a gaming application, then you will have to pay for extra lives, or you will have to pay for further rewards. In some cases, the users get access to these features if they are patient enough and use the application with utmost consistency. But these are rare opportunities as the user needs to be extremely loyal to the organization and the app.
- Free app with a subscription model
you must have come across several content applications, such as television-related applications, applications that provide news, or OTT applications. These are the applications that allow free content for a limited time frame, and then you need to pay for a full-time entertainment. Many such apps exist which permit you to test the application with all the features that they have to offer, or the limited features for free for a short span. Once you are satisfied with the usage of the product and feel like you want to continue using the resource, you can pay for the subscription of the application. These applications also offer monthly, quarterly, half-yearly, and annual payment model. The price ranges depending upon the time frame for which you need the app. So, they provide you with a range of options.
- Paid app model
you can create an application for which you have to pay to download. It is one of the rarest options you should go with because consumers these days rarely every download application for which they need to pay. Remember that if you create an app that needs money for a download, then the app must be of top-notch quality. You need to realize that the application should be authentic, and should have extensively creatively constructed features, that make your app worth paying for, in the long run.
- Partnership model
you must have come across several applications that advertise for different brands that belong to either the same industry or contrasting industries focusing on the market that you have control over. If you have a niche market, then other brands might want to collaborate with you to put forward their brand in the eyes of your users. This method has distinct methods of earning, as well. Sometimes the collaborative organization might charge you for effortlessly posting about their brand on your application. Sometimes they might pay you for the number of clicks and user interaction you can provide to them.
Each of these models has its advantages and disadvantages. If you are looking for a strategy that best suits your requirement, then we suggest you conduct research and find out all the affirmatives and pessimistic factors about each of these models. Once you have concluded the option to corroborate in your application, you can then create your app accordingly to get the best possible result.
Making money through an application is possibly the easiest and yet the hardest thing you will ever come across. If you remain patient and calm, you can get substantial earning and rewards out of your invention.