Ways to monetize mobile apps

Published On March 24, 2018 | By Robbie Garner | Technology

There are no altruists among successful businessmen: if you waste your time, then it makes sense to compensate time consumption. Development of mobile applications is the main activity for many programmers, and the question of how to make money on a mobile application is a high-priority issue.

Free mobile apps with a platform for advertising.

Free applications are used in those cases when making the application popular and in demand is in priority over immediate earnings. Also, some companies offer free applications for the ease of use of their main product. This is the way that was chosen by the developers of many popular social networks (including Facebook): downloading and using the application on the phone is free for users, but there are placed in-margin display advertising posts and videos in video clips and articles. Such places for advertising are paid by customers, and the developer makes a profit for providing an advertising platform.

Freemium — crippled versions of the apps.

The key point of the method for obtaining income is that the limited options in the application are provided to the user free of charge. You will have to pay for the more advanced and convenient options. An example can be cloud storage of data with limited volume in the free version and a multiple increases of it for a surcharge, as well as computer games, the initial levels of which are free.

 It is important to keep a balance between supply and demand: if too many options are provided to the customer at once, he may not get interested in the additional ones, and if there are too few options, the application may not gain popularity.

Free Trial — an application which is free for a specified period.

It’s an attempt by the developers to combine the advantages of free and paid mobile products. The application is made free for use for a certain period of time: for example, a month from the date of download. During this time, the buyer can evaluate the real merits of the application, so he has the reasons to buy a version for a longer period.

 Subscribe — paid subscription for the content.

Subscription is an intermediate step between a free and paid version of mobile applications. An example can be one chapter of an e-book in free access, and the rest – you will have to buy. In addition to books, such applications can be training articles, videos and access to news. Developers have a task to make the content as much interesting as possible to attract the buyer. The disadvantage of it is that the method works only with a certain type of applications.

In-app рurchase — purchase the game.

They give the opportunity to obtain virtual and real products or services during the game.
Paid mobile apps.

Monetization of mobile apps is a double-edged sword: on the one hand – you have a steady income, on the other – difficulty in persuading potential buyers to purchase the product, the real advantages of which he has not yet appreciated. To increase sales, you need to boost applications, which requires an initial investment.

When choosing a way to generate income from a mobile application, it is important to evaluate its special features and real merits, maximize its utility for potential buyers, and estimate your time frame: what payback period can you afford?

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