Put Your Best App Monetization Model into the Business Pipeline for Success

Must Read

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Google Warns Users To Update Their Chrome Browser Right Away!

If you are an active user of the Chrome browser, Google wants you to stop all the...

Indian-Origin IT Firms Woo Donald Trump Amid Re-elections And India Visit!

Amid the United States going through the presidential election, major Indian-origin biggies such as TCS, Infosys and...

You may have big plans for that app you’re building. Maybe you want to create brand awareness, grow your mobile customer base, cultivate loyalty, or something else. Regardless of the many reasons that may have motivated you into app development, the one expectation you do have from your app is for it to be a steady source of revenue, unfortunately, not many apps developers are able to get that. In one of our earlier analysis, we discussed how 73% of independent app developers are able to make only less than $1000 monthly, while the average monthly app revenue stands at $1,500 globally. In contrast, the overall global monthly average app revenue varies from $5,000 – $11,000. For this to happen, app developers have to monetize their business plan by choosing the right bankable business model, which will help their app make handsome revenue.

There are different mobile app monetization models you can consider when it comes to making a profit. While you can always adopt the paid app business model (which means your app isn’t free to download), selling an app can be difficult, particularly in an overcrowded store where some of your best competitors are offering their apps for free. Since this is the case, the following are the top two free app monetization business models you should consider.

Freemium Apps

Freemuim is definitely among the most dominant business models, especially for mobile app developers. If you’re not familiar with this term it helps to know the freemium definition. Freemium is a type of pricing strategy. A product or service that falls under this particular business model is provided free of charge but if customers would like to access the product’s or service’s full features, functionality or virtual goods, they will need to pay to obtain the premium content, tools, etc. The term combines the words “free” and “premium”.

Advertisements

Many smartphone app developers tend to take the Freemium route because it gives user’s free access to the app’s basic functionality but charges them if they want the premium or propriety feature. In essence, it lets users sample the app, giving them a rich preview of your product so they can see what it can do without giving them everything. The goal of this model is to accumulate users and engage them until they are willing to pay for the additional goodies.

Mobile App Revenue Growth 2012 vs 2013
Mobile App Revenue Growth 2012 vs 2013

In 2013, Freemium apps received record 211% growth surpassing all other app monetization models. However, making freemium work effectively can be easier said than done. You need to find the right balance to convince your users to buy. Offering two few features for free will turn users away, so will not being upfront with users about only certain parts of your app being free. No one likes to be surprised with a hidden fee. The other issue is offering too many features for free as this can make it difficult to convince users that they want more than they already have. Consumers love to try before they buy but they need to feel that what they’re going to purchase is worth it.

However, choosing the better fit for monetization doesn’t necessarily mean adopting the freemium business model. Another popular model for free apps is in-app advertising.

In-app advertising

Apps that use this model are free to download but they have ads, which is how you remove the cost for the user. Your goal when using this model is to obtain information on the people who interact with your app. This data is stored and sold to app publishers who in turn pay you to place targeted ads in your app.

Advertisements

The one major downside of this model is that users can quickly become annoyed with ads if they’re not strategically placed in the app, such as after a natural break in a game (ex. between levels). If ads are too intrusive, like banner ads, users will quickly delete your app. Therefore, In order for this model to work well, ads need to be limited, interesting and appeal to your app’s target audience.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Digital Payments in India: UPI Stands Triumphant Over Debit and Credit Cards

UPI or the Unified Payments Interface has become one of the fastest-growing payment platforms in India and...

Backed By Narayan Murthy, Jeff Bezos To Go After Zomato And Swiggy!

Just when Zomato and Swiggy thought that after the acquisition of UberEats by Zomato, the food delivery market in India is going...

India Wants A Bigger Chunk of $100 Billion In Global Taxes Levied On Google, Facebook and Amazon

It has been reportedly found out that India is adamantly pushing for a huge change at Organisation for Economic Cooperation and Development...

Facebook May Have To Pay $3.50 Per Month To Millions of Users?

Almost every internet tech giant, be it Facebook, Google or Twitter, has flourished by optimising and channelising their strategies that are largely...

Google Warns Users To Update Their Chrome Browser Right Away!

If you are an active user of the Chrome browser, Google wants you to stop all the work and update Chrome browser,...

TikTok Owner ByteDance Gearing Up To Challenge Facebook, Apple And Amazon!

ByteDance Inc. doesn’t want their massive success to go downhill after its blockbuster video app TikTok blew up in the social media...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This