Top 3 strategies to monetize your app

Are you thinking about developing a mobile app to increase sales or improve the customer experience? Or maybe you’re a successful fitness blogger who sees a mobile app as a perfect tool to receive an additional income? If one of the cases is yours than you are not mistaken – mobile app is a powerful booster for each business. All top world companies have own apps and constantly upgrade them to stay competitive on the market.

However how exactly an app helps businesses to earn more money? The answer is simple, they all use a smart mobile app monetization strategy. There are several types of strategies and we’ll uncover the most popular of them:

  • In-app advertising
  • Freemium
  • Premium

But first, let’s look at the goals you might want to achieve by monetizing your mobile app. Since there is enough proposition on the market (App Store and Google Play host over five million apps in total), how to find a place for one more app?

We suggest you defining the goal of your app first. Try to answer the following questions: what value proposition your app can offer; what strategies your competitors use; and how to encourage users to use your app and even pay for it.

We suggest you defining the goal of your app first. Try to answer the following questions: what value proposition your app can offer; what strategies your competitors use; and how to encourage users to use your app and even pay for it.

Sure thing that your app has to offer some kind of value to the users. Don’t try to impress them only with hi-tech features and detailed descriptions. Just explain them in simple words what benefits they will get while using your app or how your app can solve their needs.

Discovering your own value proposition will be easier if you get familiar with the strategies of your competitors. By studying their methods and business models you can take their advantages and learn from their flaws.

Let’s imagine that you’ve already released your app, but how will you acquire users? The best way to make your app visible is to use social media. Advertising and app store optimization will also help to attract more users.

In-app advertising

And now let’s focus on the monetization strategies themselves. We’ll start with in-app advertising. As the name implies this method refers to the ads user sees while using an app. The ads can be native or appear in the form of banners, pop ups and videos. In this case you receive money for posting someone others ads on your platform. This strategy is profitable but tricky at the same time: users can delete your app because of annoying ads.

Freemium

The second most popular monetization strategy is freemium. This means that the app is free to download, but if users want to get rid of the ads or receive more features they need to pay additionally.

Premium

In case with premium mobile app users have to pay to download an app. This type of strategy can be used by large companies, as they are confident enough to know that their customers are ready to spend money on the application. However if a startup company is planning to use premium model for monetizing an app, it should first develop a free or lite version in order to catch the interest of the prospective users.

 

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