Ways To Monetize Your App that are used by almost every app owner | by Allurive
6 methods
IN APP AD
In-App Advertising The main aim of this strategy is to bring as many users as it can to improve the hit ratio of the app. This data afterwards can be shared to another company who wants to place add in the platform. Thus, you get paid for placing the advertisement and generate the revenue. As compared to the website it is easier for the user to get the app and use it, so a vast pool of the audience can be gathered if the application is able to solve the problems of the user.
contd.. The drawback of this concept is that users get annoyed by the numbers of add-ons that get popped up. Your app can sometimes get hampered due to advertising as there is a limit in screen size. This can be used only for the general purpose apps, for the app that is designed to solve the specific purpose advertising cannot prove to be useful.
2. Freemium In this strategy to monetize your app, the basic function of the app is available for free, while to upgrade and enhance the further function user needs to pay for it. For e.g. some games have the function like to upgrade the weapons and stages so, for this user has to pay the fees and get the update.
contd.. This marketing model helps in enrolling the large base of the user, where the developer tries to addict the user and hence makes a user to purchase the further premium. It can work as “Trial before Buying�, so user gets the app on trial base and is then more likely to convert into the subscription model of the app. As it can be said as a trial, developer cannot provide many features or if he provides various features his app get churn up. Too many features make it difficult to make purchase further.
PAID APPS
3. Paid Apps This is the simple format of generating the revenue where a user needs to pay first to download the app. The developer can get instant revenue for every download. Once the user makes the purchase, he gets engaged using the app continuously. As being a paid app, there is no advertising content in it so, a user gets the good experience of using the app without any disturbance.
contd.. But the problem of bringing the user on board becomes difficult and it also incurs a huge cost. Also, developer has to give commission to the app store so there is a revenue shrink for the developer. Number of download in the paid apps is limited only to a few per day.
4. In-App Purchasing In this model, products are sold in the forms of advert pop-ups. Mostly the goods that are sold are consumer goods. For e.g., you can sell some of the amazon’s product in your app by popping up the amazon landing pages. This model works for e-commerce and m-commerce brands. It can prove to be a good source of revenue generation. Huge margins on every sale that is achieved. The developer gets the cut in the revenue as commission needs to be paid.
5. Subscription Portal This is the excellent source of revenue generation. In subscription model, repeat sale can be easier. The user can subscribe as per his need and solution. It is a good model for the developer who wants to enter in the service-oriented apps.
contd.. There is less churn in the app and user get wonderful experience as it remains focused to solve the particular problem only. Subscription can vary from 1 day to 1 year period so, a user who wants to enroll for longer period get tons of discount offers. It is mostly suited for the service related to data, news and lifestyle contents.
6. Content Strategy and Sponsorship You can board large pool of users if the content quality is good and provide all relevant information to user. Sponsorship is the newest strategy that has entered recently. In this model, you can partner with an ui/ux development agency which can fund you in developing the app and also backs you in marketing purpose.
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