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There are several business models you can pick to monetize apps. As an app developer with a finished product, you are now looking for returns on your time and energy. You want to pick the best monetization model for maximum profit. Read ahead to learn about 5 business models to monetize your app. This way, you can earn big profits from your digital products.
Advertising
Advertising is an effective, conventional method of monetizing apps. You should consider advertising in your app as a way to make steady cashflow. There are several forms of advertising you can allow on your app. You can display non linear ads, native advertising, ads for related apps, videos and banners. You should choose the form of advertising based on how intrusive it may be to your audience. You want to ensure good ad revenue without alienating your audience. This business model is good for generating passive revenue with minimal input. You also have a high amount of control in what is displayed to your users. That makes app advertising monetization strategies highly popular among many developers turned entrepreneurs.
Freemium
Freemium monetization may be optimal based on what kind of app you have built. You can entice your users with the freemium model by having a strong base app. With the freemium model, you offer basic functionality and keep premium features behind a paywall. This model can entice users that might not spring for subscription or upfront paid apps. You can make a large profit, especially if you have a gaming app like Quake Live. One of the major advantages of the freemium model is that it is non intrusive. This is a major boon based on your audience. You can eases users in, then offer them a choice to pay further. This makes the user more amiable, making them feel as if they are supporting you, the app creator. Freemium app monetization models are one of the most popular among today’s top app developers.
In App Purchases
In app purchases are currently the largest revenue source for free apps. You should use in app purchases for monetizing apps if you have virtual goods in your app. In app purchases are especially profitable with gaming and commerce apps. Just by naturally using these apps, the consumer will want more in-game loot or real life goods. If your app naturally garners a lot of use or play time, in app purchases are a good source of revenue. However, you should also consider that marketplaces take a portion of your revenue. In-app purchase models leave you a lot of considerations to weigh during your decision making process.
Subscription
The subscription business model is a good way to monetize alternative apps. If your app is based one providing new content every day, like ToDoist premium, you can entice consumers with subscription. This means that the subscription model traditionally pairs well with music, news or book apps. Similar to the freemium model, you can entice your users to upgrade to subscription by providing base content. Alternatively, you can make the app free to download, but put your content behind a subscription paywall. An effective way to get users to subscribe is to offer a limited time free trial of subscription services. Keep in mind that subscription models are not very effective for gaming or social networking apps. Depending on what type of apps you hope to develop and monetize, the subscription model may or may not be your best choice.
Sponsorships
Sponsorship monetization blends the business models of advertising and in app purchases. You can reward in app actions with prizes provided by a sponsor. Sponsorship has several benefits. It feels less intrusive and increases time spent using the app. People are always motivated to earn free goods, and it can provide useful market data as well. Though potentially profitable, sponsorships can be tricky to implement. Your biggest challenge will be finding the right sponsor for your app. As long as those possible hurdles do not dissuade you, sponsorship monetization models can be one of the most lucrative monetization models for apps online.
Picking the right business model to monetize apps can be a tough choice. Consider the benefits of sponsorships, advertisements, subscriptions, freemium and in-app purchases. Then, you can make the best decision when it comes to picking the right model for your mobile application. To pick the right business model, consider your user base and the nature of your app. After some time has passed, you can assess your app profitability and make changes if necessary. Or, if you did things right, you will be able to just sit back and watch the money roll in.
