Whether you are a solo developer or an app development company, if you think launching an app is the last step of development then you might be wrong. It is necessary to consider app promotion and updates as an inseparable part of app development. App monetization models play a crucial role and decide the future of your mobile app.
If you have invested time and energy to build a great app, it is equally important to invest time and set predefined goals of driving revenue from it. Choosing a monetization model is a must. So if you are also thinking upon these monetization models, few of them are explained here, in brief, to help you choose one for your app:
A free plan is the one that allows its users to download apps and games for free initially. You might think: How this plan will ever help you gain revenue!? Well, this freemium monetization model actually offers basic features and functionalities to its users. So, if they like your app or game, they can go ahead and purchase its premium version.
In-app purchases refer to a purchase made by a user for getting access to the additional features, premium versions or subscriptions of the app/game. This is quite a popular monetization model. It allows a developer to generate revenue along with proving the value of their products.
One-time download charges
This monetization model demands its users to pay only for a single download in the beginning. Rest of the updates and additional features come for free. In this model, the apps need to provide significant value to its users at the first go itself followed by enhancements, design and usability changes. Mostly, utility apps adopt this type of monetization approach.
Displaying relevant ads on your own app or game for promoting others is also a favorable option of monetization. However, you must set a limit on the number ads displayed. Too many ads on your app/game might irritate your users and force them to uninstall it.
A service based monetization is a new approach offering required services to its users along with monetizing it. It is a win-win situation for both the parties involved with the service provider as well as the user.
Let us take the example of Facebook. It added the ‘order food’ suggestion in its messenger. This allows users to order food via Facebook messenger thorough companies partnering with it.
Tips to remember before choosing a monetization model
Know your audience
Before choosing a strategy, first understand your audience; their interests, choice preferences, and demographics. Analyze the data to finalize upon a perfect monetization model match.
Provide then with value
Try to provide them with a value through the products that allow you to gain more profitability. For this, you need proper consultation from a reputed app development company. The more value you provide them, the more they will lean forward to pay for your app.
Choosing a perfect monetization approach might be tricky and it may require several trial and errors. First work on listing out your business requirements and then take a monetization approach revolving around it. It may not work well in the beginning but you can customize it until it works best for you and your business.