Having an app gives you an edge in the digital age. It’s a chance to build a relationship with your customers and create additional value for them. In addition, an app can generate revenue in several ways. But do you know there are several quick ways to monetize your app and start making money from it?
In this article, we will dive into how app owners make money and what are some robust ways to get started with app monetization
How do app owners generate revenue?
There are several ways app owners can monetize their app and generate substantial revenue, some of the key methods are:
- In-app purchases are among the most popular ways to monetize an app and sell digital goods and services.
- Running ads inside the app is also a popular way to monetize an app and generate revenue.
- Another way to generate revenue from an app is by selling premium features or content.
- And in-app subscriptions are another monetization method for app owners.
Here are the 10 best ways to monetize an app:
Among many app monetization strategies, we have picked the top ten methods you can try to earn revenue from your mobile application. Check out the list below:
1. In-App Purchases:
In-app purchases are those paid features or content available inside the app. It can be of broad categories such as gaming avatars, coins, levels, and lives, or unique features.
You can also offer a subscription to your app users, giving them access to all the premium content for a certain period. The future of in-app purchases seems to be headed towards microtransactions, where users can pay for small digital goods and services inside the app.
2. Sponsors and Partnerships:
You can collaborate with other brands or businesses and offer in-app sponsorships. For example, a gaming app can feature another business’s product inside the game. Similarly, a news app can feature stories from partners or collaborators.
It is a win-win app monetization strategy because it helps you get revenue from the sponsor while also providing value to your app users. Moreover, it helps app owners build a customer base that is interested in the products or services of their sponsors.
3. App Advertising:
You can run ads inside your app and get paid every time a user views or clicks on the ad. There are different types of ad formats that you can try inside your app, such as banner ads, interstitial ads, video ads, native ads, and so on.
Choosing the correct ad format that does not disrupt the user experience inside your app is essential. Moreover, you should keep track of the number of ads you show to the users, as too many ads can lead to user fatigue and, eventually you may lose quality users.
Also, ensure you use a reputed app monetization platform to show in-app advertisements.
4. SMS Marketing:
Most marketers overlook the power of SMS marketing. However, it is one of the most effective ways to reach out to your app users and promote offers, discounts, or new content. You can use an in-app messaging platform to send targeted messages to your app users and promote whatever you want.
The best part about SMS marketing is that the open rates are pretty high compared to other marketing channels. Moreover, it is a permission-based marketing channel, meaning the users have to opt-in to receive messages from you.
5. Running A Freemium Model:
Freemium is the most exciting and customer-centric way of monetizing an app. In this model, you offer a basic version of your app for free and charge users for premium features. This is a great way to let users try your app before they make a purchase.
The key to making this model work is to offer enough value in the free version so that users are compelled to upgrade to the paid version. Moreover, it would help if you also provided a 14-day or 30-day free trial of the premium version to let users experience the value before they make a purchase.
While building a freemium model, ensure you have a solid retention and conversion strategy.
6. Content Strategies:
You can use different content strategies to monetize your app if you have a content-based app. For example, you can offer exclusive content to users who make in-app purchases. You can lock certain pieces of content and only unlock them when the user completes an action, such as watching a video ad.
Another way to monetize content-based apps is to offer a subscription model where users can access all the premium content by paying a monthly or yearly fee. As your app gets popular and builds a loyal user base, you can start charging for premium content. Some key premium content options are infographics, e-books, reports, etc.
7. Subscription Models:
As the spending capacity of people worldwide is increasing, more and more app users are opting for subscription-based models. In this app monetization strategy, users get access to all the premium features and content by paying a monthly or yearly fee.
The subscription model is generally used by content-based apps such as news apps, video streaming apps, etc. However, it can also be used by other types of apps such as productivity apps, utility apps, etc.
The key to making this strategy work is to offer enough value in the free trial period so that users are compelled to subscribe to the paid version. Moreover, it would help if you also provided a variety of subscription plans so that users can choose the one that best suits their needs.
8. Data-Driven Apps:
Data-driven apps are the new trend in the app world. These apps use data analytics to offer personalized content and recommendations to users. The best part about these apps is that they get more accurate data and provide better content as time passes.
If you have a data-driven app, you can use it to generate leads and sell them to businesses. You can also use the data to improve your marketing campaigns and get better results. Moreover, data-driven apps can also create custom reports and analyses for businesses.
To make this strategy work, you need to have a good understanding of data and analytics. You should also be able to use different tools and platforms to collect and analyze data.
Crowdfunding is a great way to raise money for your app development project. In this model, you can offer rewards to people who pledge money for your project. The tips can be anything from early access to the app to exclusive content and features.
Crowdfunding is a great way to engage with your users and get them excited about your app. It is also a great way to raise awareness about your app and get people talking about it.
The key to making this strategy work is to offer attractive rewards to people who can bring you the most value. Moreover, you should also set a realistic funding goal to reach it without difficulty.
10. Connecting with Google AdX:
Google AdX is a powerful tool that can help you monetize your app. This tool allows you to connect with different advertisers and sell ad space in your app.
The key to making this strategy work is finding the right advertisers willing to pay for ad space in your app. Moreover, it would help if you also ensured that the ads are relevant to your app and do not disturb the user experience.
Using Google AdX, you can also create custom ad units specifically designed for your app. This way, you can control the ads’ look and feel and ensure that they align with your app’s design.
These are 10 of the best ways to monetize an app. As you can see, a variety of options are available to you. You can choose the one that best suits your app and business goals. Sortlist and try the best-fit solution for your business. Experimenting with different methods will give you a better understanding of which one works best for you.
The right app monetization platform or strategy can help you earn more revenue and reach your business goals. However, you must be mindful of the user experience and ensure you do not compromise.
The overall monetization should be seamless and offer value to the user. The higher the value, the better the chance of your app’s success. With these factors in mind, you can be sure to find the right monetization platform or strategy for your app.
I’m an experienced Digital Marketer, and Strategist, been in the IT Industry for the last 5+ Years. Currently working with AppBroda Tech – a mobile advertising platform that helps app publishers and developers reap and optimize ad revenue. Skilled in constructing a Digital Strategy, Growth Hacking, etc.