Making money is a basic and necessary part of application planning, development, and maintenance. Even if you have a newly developed app, you can monetize it. The app monetization model is not a simple concept. There are several ways to generate revenue from an app. We've created this comprehensive app monetization strategy guide to assist you in successfully monetizing your software and increasing the return on investment. This guide's strategy will walk you through the most common mobile app monetization strategy, which will help you decide which option is best for you.
What is Application Monetization?
Application monetization means literally converting your app into a money-making machine. You can convert app users into paying customers and generate well from your app. It is not as easy as putting on a "Pay Now" button and waiting for the revenue to come in. You have to understand the needs of app users and provide them with all the things they are looking for, only then they will pay. Different methods to monetize your apps include in-app ads, in-app purchases, subscriptions, and one-time payments.
How Do You Monetize a Mobile App?
After completing the mobile app, you need an app monetization strategy to monetize your app successfully and generate revenue. Whether you have created a paid or free app, you must develop an app monetization strategy that will satisfy your users while ensuring your company's profitability. News applications, for example, are better suited to subscription services and gated content, whereas mobile gaming apps benefit from in-app purchases. This article will guide you in every aspect of things you should know about app monetization, including different app monetization models and definitions for key terms.
How Much Money Can You Make from A Mobile App?
Mobile app development in the United States and its market share are growing daily. According to data from 2014 to October 2018, the revenue generated by global mobile e-commerce increased dramatically from 184 billion US dollars to 699 billion US dollars. The top 200 applications on the Play Store earn around $82,500 per day. On the other hand, this drops precipitously, with the average income in the top 800 applications falling to around $3,500.
According to Buildfree.com, the two platforms account for 99% of the market share, with Android accounting for 81.7%. As a result, 16% of Android and 25% of iOS developers earn more than $5,000 monthly from their mobile apps. Do downloads generate revenue for applications? Free applications do not earn revenue per download. Unlike paid applications, subscription-based mobile apps make money for each purchased subscription. Checking the application price in the Software Store or Google Play will allow you to calculate how much revenue it makes per download. Various valuable ways to monetize Free Applications include advertising ads, in-app purchases, sponsorship, and affiliate marketing.
Can A Mobile App Monetization Make You Rich?
Who doesn't want to be rich in today's age without investing money in creating software? To be a successful businessman nowadays means that you should keep moving with the times; mobile apps development is an essential tool for improving the business. First, you need to understand the needs of the users, then think out of the box and come up with the idea that forces your potential customer to download your app. Take an example of Instagram, TikTok, and Snapchat. These apps are easy to use; people are just a click away from each other and have an amazing user experience. Plus, not just entertainment, these apps are helping people grow their business and revenue by reaching their ads to the max targeted users. So, the answer is: yes, mobile app monetization can make you rich. There are several ways to monetize your app, but be careful; you should go for your monetization strategy per your requirements.
What Are the Five Ways to Monetize Your Applications?
There are numerous mobile app monetization models available. Let's throw some light on the five main popular app monetization strategies. And discuss how they may affect software growth and engagement.
In-App Purchases
This model takes several forms:
- A premium system feature.
- A new free user experience such as level or reward.
This app monetization model is applicable to both free and paid applications. The best example of leveraging in-app purchase models is mobile gaming apps. Once the user becomes addicted to the game, he purchases paid features of the games such as game diamonds, maps, clothing, weapons, vehicles, etc. for example, PUBG is a popular game that gained popularity during a pandemic time. People can earn handsomely from this app monetization model. ECommerce mobile apps, like mobile game apps, can have this strategy and monetization models. Users' purchases also fall into this category.
In-App Advertising
The most profitable app revenue model is in-app advertising. Mobile app owners use this monetization model to make money from their apps without disturbing the user experience. An in-app advertising strategy is easy to implement; you only have to display commercial ads inside your mobile apps and get paid from the ad networks. While using this model, ensure the advertisements are relevant and targeted to your audience. In-app ads are available in many formats described below.
- Interstitial ads: This popular monetization model display ad on an entire mobile screen. Many top publishers leverage this model and make money from their apps.
- Banner ads: This monetization strategy doesn't disrupt the user experience. It occupies only a small area on a mobile screen mobile. These ads must be visible enough to target the audience and high in quality.
- In-app video ads: The most effective mobile ad format. You can convince potential customers to download your app or convey your message through your video ad—many brands such as YouTube, Facebook, Instagram, and much more use this strategy.
Freemium (Free and Premium)
As the word described, Freemium is the combination of Free and Premium. App service providers offer some basic free features to the user, and some advanced features are premium. Users must have to pay for application premium features. In order to generate revenue through this monetization model, app features should have user-engaging features. Most users don't upgrade to the premium features easily; app developers should offer a free premium version for a month. So that users experience the extended features of upgraded versions and continue to use the premium version.
Subscription
This subscription app monetization model is similar to the Freemium monetization model. App developers can earn subscription fees monthly or annually. Many brands are working under this monetization model, such as Netflix, Amazon, Adobe, Apple Music app, and many others. This model is successful as well as popular; once the user subscribes to the app, he will be charged even if he is using it or not, plus the user has the flexibility to freeze the subscription for a month or more if he is not using it for that time. This monetization model is steady to earn, but it works for the long term, and app owners can earn monthly or yearly continuous revenue.
The Paid Download App Model
This paid app model suggests that one has to pay the fee for downloading an app. This is a little tough as most people don't pay for an app download. App developers should set the range of affordable download fees so that people don't hesitate to download your app. This model is very successful in gaming apps, such as Minecraft, GTA, and many others. Not just games but many other useful apps are paid, and people download them as per their needs. This model falls under the direct monetization strategy.
How do I monetize apps without ads?
You can monetize your apps without using ads by applying one of the following methods:
- In-app purchases and the freemium business model (This is an excellent app monetization strategy without displaying ads.)
- Affiliate marketing.
- Sponsorship models.
- E-commerce and software merchandise.
- Subscription models.
Bottom Line
A number of well-known platforms or tools allow you to monetize your app. As a beginner, app monetization model selection and working on your selected model could be challenging. But first of all, you need to be sure with your product. If you have doubts about your knowledge in code developing mobile applications and need any help regarding developing a mobile app, you can search for easier ways to start, for example, no-code mobile application development. Choose the right platform, and you will get your mobile app monetization soon. AppMaster is a perfect no-code platform for you to start your journey. It has the best mobile backend to provide you with the best user experience possible.
