Now that you have created a great mobile app, and that your users are able to better engage with your brand, it’s time for you to discover how to transform that app into a money-spinning tool.
Here you have some advice about how to monetize your app:
Build Email Lists
You might want to consider this as the first step. Email strategy is a fantastic means of engaging your customers, which subsequently generates you more income.
The rationale behind this is while people change their devices as technology advances, they rarely change email. This means they can see your content and engage with your brand. A research conducted by Wiselytics stated that the total lifecycle of a Tweet is about over an hour, a Facebook post is a few hours, but email has about 12 days lifespan. How do you gather emails? Your best approach is to embed an email subscription in your app.
The in-app subscription not only provides your app with a big boost, but it also prompts the user to log in their emails, especially when you promise them some values for subscribing.
Use In-App Purchases
Most applications we download are free, but that doesn’t mean the app users may not spend money while using the app. In-app purchases enable you to make extra income off your free app while users engage with your product. Examples of such apps are freemium apps like mobile games where users don’t pay before using but only pay for premium features. This is a perfect business strategy and quite popular among app developers.
Although it also has its down points, such as the coding effort behind integrating a billing system, it usually pays off quite fairly: on the one hand, users willing to spend money have the chance to do so, and on the other hand, the rest of the users will still have the opportunity to use your app. You’ll also have to pay a commission for such billing system; 30% in the case of Google Play. Anyway, some billing systems, like Catappult’s one offers a zero effort integrating method (it’s fully automatized) and quite a fair share for the developer: 75% of each purchase.
You might be undermining your chances of making money if you are not adding ads to your apps.
Digital advertising via mobile apps has enhanced data sharing between advertisers and consumers. This is based on the amount of time an average person spends on the phone- this is about one and a half-hour daily or 23 days a year.
The annoying thing is most people don’t pay to use the apps. The excitement to download an application with a $9.99 price tag weans as soon as they see another alternative that is free or cheaper. So how do you provide a free app and also make money? Leverage app advertising!
Sponsors and partnerships
You can collaborate with other brands to monetize your app. However, it is crucial to search for a partner that has a similar fan base as yours that can contribute to the user experience.
A partnership can be of immense benefit to your brand and customers if you establish an integrated experience between the two parties.
When a user sees your logo on an app they are using currently, he or she could be convinced to download your app instantly. And if advertisements have been included by your partner, which features your apps, users will end up clicking those ads linking your ads. This action is called click-through rate or CTR, of which in some cases can be up 12.5%.
Provide Free or Premium Versions
As stated previously, it costs users nothing to download these apps, but most times they incorporate in-app purchases that generate residual income for the owner. But there’re more ways to monetize!
You can also create a special version of that app and include features that provide more experience. A free version is like a teaser that shows users what they gain from using your apps. As soon as they are used to the apps, and they are addicted to them, the apps subsequently become a necessity in their lives. At this point, they don’t mind paying an additional fee to enjoy the premium versions. A clear example for this is Wikiloc, an app for users to discover hiking trails. You can see the trails and many details, but a subscription gives you access to many other features like navigation or record the hike.
Don’t forget, if they eventually pay for the gated version, you have to give them the value for the cash. This is how they will become your app evangelists that will invite their friends to download the app.
Which of the strategies will you adopt to monetize your app? Let us know in the comments!