Top 5 proven strategies for monetizing apps
Whether you own apps or just planning to create, one thing is for sure, you have decided to earn money from your apps. You are having your first step towards success. Learning things before taking action on monetization is important.
The app development industry comes along with the potential of earning millions of dollars. You might be wondering how successful app owners earn passive income or make a living through their apps. If there are lots of people who are making revenue from their apps, then why would you become an exception?
You can make money through these top 5 monetization strategies:
1. Selling products/services
This is one of the main reasons why businesses make apps. They sell their products or services using it in order to reach their customers more conveniently.
Let’s say you have food cravings and it would be a hassle for you to come to their restaurant because you have lots of things to do at your office, then a food delivery app could be your perfect solution.
You don’t have to go there physically, get stuck in traffic, or waste time in a long queue. You can easily place an order on their app and a rider will deliver it to you. The delivery app gives you a hassle-free experience in ordering food. Using an app improves the chances of making an online sale.
(Also see: How Websites Make Money (that works!))
2. Sponsorship
Developed apps that have regular users usually used this strategy. Businesses do all kinds of sponsorships in order to have an opportunity to be in front of their target market, to promote their brand, and attempt customers to purchase their product or services
Reaching out to businesses to launch an app on behalf of them could be a great starting point to make revenue. Both parties could benefit from this monetization strategy. App owners usually equally divide revenue or set a monthly sponsorship fee with their sponsors.
3. Advertising
According to App Annie, mobile ad spend is predicted to reach $290 billion by the end of 2021. More and more people are using apps and that is why businesses do advertising on them. Some app owners use ads as their major strategy for making revenue.
App owners showcase ads within their mobile apps. These include banners, commercials, autoplay videos in a game, and more. Through ads, businesses were able to expand their market and boost more sales. App owners are paid based on the number of clicks when the user completely watches the ads.
4. In-app purchases
Free apps mostly use this strategy. The concept of in-app purchases is where a user would purchase something from the app. This could be premium functionality, latest app features, blocking ads, and more.
There are lots of games that use this strategy. The app is offered for free. They let their users experience the game for free. The app will offer him extra lives for a specific amount of money once the user has ended his life on the game. Transactions from in-app purchases are managed by the app store/play store.
5. Paid apps
The four monetization strategies mentioned above are usually done on free apps. Free apps are the ones that you can download on the App Store or Play Store for free.
Paid apps are basically creating a great app, charge your customers for downloading your app, and you’re done! App Store and Play Store both let app owners set how much money they want their customers to get charged on purchasing their apps.
The cost per download depends on the app’s functionality, chosen platform, monetization type, and more.
Monetizing apps is a serious business. Consider your app as your business. Whether it is a free or a paid app, you can make a lot of money from it if you do these monetization strategies correctly. Always keep your customers happy and satisfied in order to keep them coming back.
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