If you’re building an application for your business, driving more revenue should be your goal. The huge size of the mobile market represents a capitalization opportunity for all entrepreneurs. However, the strategies and opinions when it comes to monetization are always varied. For that reason, we’re going to show you how to monetize an app in this article.
Subscriptions are quickly becoming a hot trend in the app market. If the people used to pay to own the content once, they can now subscribe to a service and access an endless stream of content for a recurring fee. This strategy is commonly used by streaming services like Netflix and HBO GO. Delivering fresh content is the key to this approach. Your users will want new content and app updates in exchange for their subscriptions so, make sure to deliver.
This monetization method is most commonly found in apps. It is the strategy that you’re most likely to stumble upon as many businesses utilize it. By allowing such purchases, your app becomes another sales channel. You’re able to sell services and tangible goods through a mobile application. But, you can also use paywalls to unlock new features, content, and benefits. This is very common in games and professional tools.
The efficiency of this mobile channel is dependent on a large number of factors. Make sure your app runs smooth and that the user experience is high. Integrate as many payment gateways as possible to make the process more convenient. Otherwise, the user might find it too unclear and end up flocking to one of your competitors.
If you’re an internet user then you’re most certainly familiar with the ad economy. Advertising it’s what enabled many independent creators and content platforms like YouTube and Facebook to survive. Ads are at the base of the online economy and the internet is filled with them.
Due to their notoriety, you must be cautious when considering this monetization method. Choose your advertising platforms, and the frequency of ads cautiously. If you’re overwhelming your users with ads, their experience will be ruined and they will end up leaving.
In case the other methods are not a good match for your business model then, partnering up with sponsors might be a good decision. The advertisers will provide your users with valuable rewards and the generated revenue will be split between the two of you. This model can increase engagement by ensuring a high user experience through the highly-relevant ad targeting.
If you’re passionate about building great apps and not about the monetization part then, the white-labeling model might be for you. You can create the structure and code of the app and sell it further to a business that only has to insert its brand. Such a business model is also often used in the cosmetics and food industries.
Every mobile application is different from its competition. With different features, goals and target audiences, the best monetization model is also very different. You need to find the strategy or combination of strategies that work best for you. Don’t forget to keep in mind the five monetization strategies mentioned above when looking to capitalize on your mobile application.