Nowadays, apps have a huge potential of becoming profitable, but that doesn’t mean that you will get a return on investment as soon as you launch yours. Competition is huge and app monetisation only works if it is based on a solid strategy. Sadly, half of the apps released for mobiles end up failing for reasons that have nothing to do with quality, so you must talk to your team of software developers and marketing experts to establish a solution that works for your niche and long term goals. There are plenty of ways that you can make money from apps and a number of aspects to keep in mind. But first, as yourself the following questions:
Who is the app for?
Establish the target audience and develop your monetisation strategy based on it. In terms of regions, the two big categories are Europe/USA/Japan and South America/Asia. Also, establish the average age of app users, as well the predominant gender.
What type of app do you have?
Each app category works with a certain monetisation model. For example, if you develop a game, you should be thinking of a freemium or in-app ad model, whereas if you launch a business-grade finance app, you can use a trial or subscription-based system.
What strategy does your competition use?
A wise thing to do before you launch your app on the market is sit down with a team of experts and analyse what your competition is doing. Are they offering free or paid apps? What kind of ads do they incorporate and what results do they have? Looking at the example of the competition can inspire you and help you avoid monetisation mistakes.
The most effective monetisation strategies
Once you’ve answered these questions, it’s time to analyse the most popular and effective monetisation strategies and choose the right one based on your app category and target audience.
- Freemium: if you have a complex, feature-packed app, you can use the freemium model, meaning that the user can download the app for free, but, to unlock all its features, they need to pay.
- Trial: this method allows users to download the app for free and access all its features, but only for a limited time. Recommended for business apps or for apps whose target audience consists of mature users, with above-average financial possibilities.
- Paid apps: the user must pay a price to download the app. A profitable, but sometimes risky option, because you need to make sure that the app is really worth the money and that you have a marketing department to make it famous.
- In-app ads: they can be used for free applications and they are recommended if you don’t want to rely on users for revenue. Recommended especially for games and lifestyle apps, but you should make sure the ads aren’t intrusive.
- Paid subscriptions: these are suitable for apps that change content regularly, such as magazines or news apps. With paid subscriptions, you need a large pool of users that access your app regularly.