How to monetize an app you've developed

Published Aug 11, 2017Last updated Aug 13, 2017
How to monetize an app you've developed

An industry of mobile apps is continuing to grow. Apps still remain a profitable source of income. According to App Annie research, the mobile market showed a decent growth in downloads, usage, and revenues in 2016.

Comparing to the year 2015 downloads both across the Google Play and iOS App Store have reached the mark of 90 billion, wherein total time spent in apps is about 900 billion hours in 2016. Such enormous amount of time reflects also on revenues. Publishers were paid about 35 billion. Although there were more downloads from Google Play, the biggest chunk of the revenue pie took iOS apps (about 70%).

Raising money on mobile apps seems to be very attractive, isn't it? Before you start uploading your app to the app store, you need to understand how to monetize apps. The app development company TheAppSolutions reveals strategies that help apps make money.

Paid Apps
Such monetization strategy means that the user pays fixed price to download an app. The cost of this purchase defined by its owner and can vary from few dollars to few hundreds of dollars.
Such model causes some risks, as the owner needs to show the value of an app. Despite the fact that the total revenue of paid apps tends to reach the mark of $29 billion by the end of the year 2017, this model can be not the best option.

Ad in Free Apps
Having an app for free, of course, is the most attractive option for users. In turn, the app owner gathers the information about users and the user base itself. When the base is strong enough, publishers can select an app for ad placement.
The advertisement has a form of a banner or pop-up that appears randomly while using an app. It can be quite annoying and may cause refusal to use an app. Also, note that having a place for an ad limits the space for the app on the screen.

Inbuilt purchases
Mobile app monetization strategy that allows customers to use an app for free, but provides a better experience with additional paid features. There are some benefits of this approach. First of all, the possibility to try an app for free acquires a broader audience. Secondly, in a long-term perspective, it helps to get a deeper experience.
Also note, that according to the statistics, only 5% of users spend money for in-app purchases.

Freemium model of App Monetization
This model is quite similar to the previous one. By downloading an app user gets access to an app, wherein some of the best features are unlocked and need to be paid for. This model is very popular for games.

Subscriptions
Another model that combines free and paid approaches. It is very popular for content projects. The essence of the model is that user can get a part of the content for free, but to receive the rest he needs to pay.

Takeaway
All of the above are the most traditional methods. Among other strategies, you can find partnership, data monetization, white-labeling, etc. However, every app needs a unique monetization approach. Be creative, combine few methods, segment an audience and provide different offers for different groups and don't be afraid to experiment.

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