In the realm of mobile app monetization, there exist various pathways one can explore. This article will delve into 5 well-received app monetization strategies, shedding light on their potential effects on app development and user engagement.
The Free and Paid App Versions Model
A commonly used method to make money with apps is to provide both a free and a paid version. In this strategy, developers may restrict some features in the free version, prompting users to upgrade to the paid one. Alternatively, they can generate revenue from the free version through in-app ads.
This strategy has dual advantages. Firstly, it offers users a free way to access the essential functions of the app. Secondly, it helps the app developer build a larger user community, which can be leveraged for earning money through app upgrades or in-app ads.
The Free App With In-App Purchases Model
Another widely-used app monetization approach is through in-app purchases, often abbreviated as IAP. The app itself, along with its basic features, is typically free. However, users can choose to pay for additional advantages, such as gaining extra lives in a gaming app or accessing premium features in a dating app, to progress faster within the app.
In some instances, users may still access premium features without payment by being patient for certain features to unlock or by engaging with the app regularly, allowing them to use the app for free indefinitely. However, in other cases, certain features are only available through in-app purchases, and app developers may offer a limited number of features for free.
The Free App With Subscription Model
Some developers opt for the creation of free apps with a subscription model. In this strategy, the app is available for free download but provides limited access to its content or services. Users are then prompted to subscribe to a plan to unlock the app’s full benefits. This monetization approach is commonly observed in service-oriented apps, like the meditation app Headspace, or content-focused apps such as news applications.
This method allows the app to be easily discovered in app stores as a free option when users search for related content. It serves as a valuable tool for developers to establish an initial user base and convert that user base into paying app subscribers.
The Paid App Model
In certain instances, developers choose to release their apps exclusively as paid versions. Typically, these apps provide distinctive value that is not easily found elsewhere. This monetization strategy is most prevalent among productivity apps.
It’s important to note that if you pursue this approach, the apps you develop must deliver sufficient value or unique functionality that fulfills specific user needs. Otherwise, building a user base to generate revenue for your app may prove challenging.
The Partnership Model
If an app gains significant popularity within a specific niche market, companies operating in that space might approach the app developer for sponsorship opportunities, aiming to showcase their brand to the app’s users.
Therefore, when contemplating your next app, consider the potential user base it might attract and the kinds of brands interested in that audience. If the user base is substantial, monetizing through brand sponsorship, partnerships, or even acquisition could be a viable option.
At Props, we specialize in intelligent and straightforward ad technology implementation, ensuring our clients achieve the maximum return on their advertising investment. Discover how Props can enhance your ad revenue and optimize the ad space available on your website or app for optimal performance and profitability.