Software developers and entrepreneurs sometimes get caught up in the belief that building an amazing app is all it takes to be successful. In a perfect world, this might be the case. In the “if you build it, they’ll come” scenario, an app that’s good enough sells itself, generates its own marketing craze and gets people to use it. Also, users will be so happy with the app that they’ll pour money into you – and you’ll earn more in ambiguity and uncertainty.
But in reality, these waking dreams did not come true. There may be hundreds, if not thousands, of well-behaved apps that perform an important function that don’t actually generate a steady stream of revenue.
If you want to be successful, creating a great app is just the beginning. You also need to find a way to monetize it.
monetization strategy
Apply monetization strategies There are many flavors. Some forms of monetization are more direct, asking users for money directly to keep the app running smoothly. Others are more indirect, using in-app behavior to generate revenue passively.
Here are some of the most common options:
- Paid apps. Some developers offer their applications for an upfront fee. It effectively earns a guaranteed income for every download.However, this strategy can be limited; 50% of smartphone users Never pay for an app.
- subscription. If you offer ongoing service, you can also charge a flat monthly fee for an ongoing subscription. This generates steady revenue, but don’t expect to turn every user into a paying subscriber.
- In-app purchases. Additional features, in-app currency, transaction fees, and cosmetics are just a few examples here.
- advertise. Traditional ads and affiliate links may degrade the user experience slightly, but it is a proven method of monetizing your app.
- Data monetization. You can also collect detailed data about your user base and then sell this information to third parties for money. Be sure to be clear and candid with your users about how you plan to use their information.
How to effectively monetize your app
Here are some of your most important strategies if you want to monetize your mobile app effectively:
- Know your target audience. different target groups There will be different monetization preferences. If your target customers are children or teens who may not have much purchasing power, then you are better off monetizing those audiences through ads or other passive streams. On the other hand, older viewers may be less tolerant of ads and more willing to pay a few dollars for an ad-free experience.
- Consider a hybrid approach. There is nothing wrong with pursuing multiple profitable strategies at the same time. In fact, it’s usually worth it to do so. Arguably, pursuing many different forms of monetization is one way to diversify your income portfolio. If one of your sources of income is threatened, you can turn to other sources of income. You can also compare these different monetization methods against each other to see which ones work best for your brand.
- Prioritize user experience (UX). In search of greater revenue generation, many developers ignore user experience. They are willing to sacrifice ordinary user experience to make more money; for example, they can generate thousands of dollars in extra revenue by sending annoying pop-up ads that interrupt the user’s experience with the app. This is always a mistake. User experience has to come first, otherwise your churn rate will be so high that the revenue stream will be wiped out.
- Increase user engagement. More attractive apps tend to be easier to monetize. Active and attentive users are more likely to make in-app purchases, click ads, and continue subscriptions. Be sure to regularly measure engagement metrics and make positive changes to your app to further encourage it.
- Measure and analyze your monetization strategy. Always take the time to measure and analyze the effects of different monetization strategies, especially when using multiple methods at the same time. Only objective analysis can tell you whether you are making a profit and whether your revenue stream is at its best.
Monetization is critical If you want to be a successful mobile app developer or mobile app entrepreneur. But don’t put too much pressure on yourself; it’s not something that has to be perfect from the start. In fact, most mobile app developers spend a lot of time trying different monetization strategies, changing their approach, and tinkering with formulas to get better results. It may take you months or even years to find the perfect balance for your application. It’s important that you make it a priority and take it seriously, not just start with a good idea.