0.01% were estimated to succeed at the end of 2018, that is an estimate of 9,999 out of every 10000 and as time goes by, it not getting easier in the app market. Many factors can cause this drastic data, but one that stands out is finance.
Developing and maintaining an app can be financially tasking, especially when you have a whole business revolving around the app. And with high costs of maintenance, figuring out how to make an extra source of income from your app is a key factor for business owners.
App monetization is less complicated than some would think. And there are different app monetization strategies for your Android and iOS app. We will look at them briefly.
1. In-App purchase:
In-app purchase can come in the form of extra features in an app, extra or extended life span in a gaming app. It is selling premium features to users. App owner offers in-app purchase to give users an added experience when using your app, that means your app should already be delighting your users before they can consider going for an added value. In carrying out in-app purchase for your app, there are certain things you should consider so your in-app purchase features will not affect your users’ acceptability of your app.
2. Paid Download
Although less than 20% of apps in the app store are paid apps, paid apps are earning billions of dollars in a year. So offering as a viable way of bringing in revenue for your app. Offering paid apps means there is something worth paying for, that means your app should be worth what you are asking for. For apps that are just new in the market, and brand names just entering the market, publishing paid apps in the market means you need to show your, potential user, what your app is about and why it is worth their time and money.
3. Free and Premium Apps (freemium)
The freemium strategy is a bit different from In-app purchase. You can release a basic version of your app available on the app store for free and adding the premium version for users who want to get more value from your app. Offering the basic version of your app is a way to allow users to interact with your app and see the value your app is providing and will provide when they go subscribe to the premium version of your app. Unlike the in-app purchase, a freemium purchase is mostly a one-time purchase for all premium value of your app.
4. In-App Subscription:
In-app subscription is another way to make money from your app. Offering the availability of premium content for a continuous fee. This strategy works like In-app purchase, but instead of just a one-time payment, users pay either weekly, monthly or yearly. This strategy is good for apps that frequently update their content and offer a wide range of quality services available at all time for example news and magazine app or design app e.g. Canva
5. In-App Advertising
In-app advertising is another viable way of earning extra revenue from your app. Since 2018, Digital advertising has moved from desktop to mobile, making the mobile industry to be commercially viable. With the amount of time people spend daily on their smartphone, advertising on mobile is a good and profitable business for advertisers. 3 out of 4 people use free apps than paid apps, so offering your app for free can increase your app’s usage, and putting ads in your phone can increase your revenue. They are different types of ads you can use in your app, banner ads, video ads, native ads, interstitial ads etc and metric to measure ads are Click-through Rate (CTR), Cost Per Acquisition, conversion rate etc
6. Affiliate Marketing
You can offer affiliates services for companies related to your industry, by selling or referring people to a product or services. In affiliate marketing, You are given a percentage for every referral you make, so the higher the number of people you refer purchases the product, the higher your money. The income gotten from every affiliate success is most times more when compared to in-app ads, a major disadvantage of this strategy is that the people you are referring to must make a purchase through your referred link unless you don’t get your affiliate profit, but the income gotten from affiliate marketing is very profitable.