Monetization of apps involves lot of effort, huge amount of time & substantial financial resources. It is a difficult task to convince users to pay for download of a mobile app as most of them are accustomed to download free apps only. However, monetization is inevitable for app developers, who want their mobile app to be a revenue generating business. The truth is that you will have to find new & innovative ways of monetizing mobile app even before launch of the mobile apps development project.
Please find below various methods of monetization of apps:
Freemium model means releasing an app in both free and paid versions to users. The main intention of freemium is to allow users to try out the free version of the mobile app & then encourage them to buy the paid version. If users get convinced and require more features than what is available in a free version, they will definitely download the paid version.
This is one of the best ways of monetizing mobile app development. In this method, mobile app developers charge a one-time payment for full-version of a mobile app. However, the market trend has to be analyzed before deciding the price you should charge for downloading a mobile app.
Mobile apps using in-app purchase is generally free to download. With in-app purchasing, users can improve their experience by buying additional features offered in the app. This model is popular among game developers, who can ask users to pay to skip levels, level up, or gain a life in the game.
In the subscription model, a certain price is charged for accessing a digital channel like newspapers & magazines through the apps. Thus, by providing users with content or support services such as extra memory storage, businesses can monetize their apps.
In this method, a developer can offer the full version of the mobile apps for free to users for a limited period, say 30 days. The user is then encouraged to buy the full version of the apps after the trial period. This is another way of monetization of apps.
In-app advertising is a business model to directly generate revenue from your app. With the help of in-app advertising, you can generate revenue from your apps by showing ads to your users.
In-app advertising in free apps offer the users the ability to remove ads by paying a fee using in-app purchasing. However, use of in-app advertising in paid apps should be avoided as users expect that these apps will be ad-free.
Affiliate & Referral Model
Affiliate or Referral marketing is a popular monetization strategy for apps ( both, paid and free). This strategy is not only effective for app developers, but also provides a better experience for users. You have to place affiliate links or banners in the apps and the developer gets paid once a user clicks through and a conversion happens.