Monetize Your Mobile App in 8 Proven Ways

Many goals are pursued in the development of mobile applications. While some developers may see a mobile app development as a test project, others may want to use it to build their brand, but most developers have one common objective in mind: profit. It is preferable to consider potential fixes for this problem before beginning the project.

While there are other ways to commercialize your product, I will focus on the primary methods for mobile app monetization in this post. They may also be used for your project. Although there has never been a perfect revenue plan, there are many alternatives available.

How to Profit from Your App: 8 Tried-and-True Monetization Techniques

In actuality, there are several ways to monetize your software. But if you exclude the too restrictive and perhaps illegal ones, you could come up with the eight most adaptable and reliable models. Let’s examine them in more detail.

1. Cost per download

Paying customers to download your software from the software Store or Google Play is the simplest and most traditional approach to make money off of it. For developers, this is a terrific strategy since it allows them to be paid right away when customers download their goods. The developer receives 70% of each purchase’s revenues, with the app store receiving 30% of the total.

However, because of its many drawbacks, this strategy is becoming less and less used. The first, and most apparent, is that fewer downloads and a smaller audience reach result from consumers who aren’t prepared to pay. Additionally, marketing expenses rise, particularly if your rivals provide a free alternative app.

Such a monetization strategy is doable provided you sell a product with characteristics that make it distinctive or marketable, you have a big marketing budget, and no one else is providing the same features for free.

2. No-cost

According to the Freemium business model, customers may download and use your program for free, but its functionality is restricted. Users have the option to pay to access more premium material or enhanced capabilities. Then, your app becomes a kind of hybrid marketing strategy.

The strategy offers a favorable chance to expand its user base and boost download volume, both of which improve the app’s position in store rankings. After having the chance to test out the app’s functions for free, users may decide whether or not to purchase the more sophisticated features.

Freemium may also have the following drawbacks:

Users will not be motivated to purchase more functionality if you give them too many options; conversely, if you give them too few, they will be forced to pay almost immediately, which also deters them from purchasing more. You must demonstrate a clear value to users, give them a positive experience, and encourage them to make a payment.

Mobile app development packages help businesses select a package that best suits their needs and budget by providing a variety of services and features that are designed to meet the various needs of their clients. These include options for app design, development, testing, deployment, maintenance, and ongoing support.

3. Purchasing in-app

It is one of the most popular methods for making money off of mobile apps, and game developers utilize it a lot. For example, players may purchase more ornamental items (weapons and clothes) or resource batches (in Clash of Clans, money).

Finding the right mix between premium and free content is crucial to having consumers feel comfortable using your app for free while also encouraging them to make purchases.

4. Advertising inside apps

For many applications on the market, the primary source of revenue is advertising impressions. To include such a model into your app, you have a variety of alternatives to select from, including text, native, video, and graphical (banner) formats.

Here, the software is made available for free download, and this strategy significantly broadens the app’s user base. Google AdMob is one of the ad networks you may join to in order to have advertisements appear on your screen automatically. You may even combine many monetization techniques like this and allow users to eliminate adverts in your app for an extra charge.

The two primary drawbacks of this model are that it requires a high user base to provide significant profits and that you must exercise discretion when using aggressive advertising since it may irritate customers to the point where they delete the app.

5. Content with a Paywall or Subscription

Essentially, this model allows people to download and use your app for free, but the quantity of material that is available for free is restricted. Users will have to pay once for access to a somewhat expanded package or pay to have unlimited access for a certain amount of time (month, quarter, or year) in order to access bigger or better content.

One well-known example of a paywalled content monetization approach is Medium.com. Among the services that need a membership are Netflix and Spotify.

Subscriptions have been more and more popular in recent years, and as time goes on, more and more developers will utilize this kind of revenue to support their products.

Because of its major benefit—a consistent profit whose volume will expand gradually with the expansion of the client base—developers will turn to this income-generating pattern.

6. Sales of Own Products or Services

Using your mobile applications as a sales channel for your own products or services is an additional strategy to make money off of them. For example, to improve client flow and database size, a food delivery business might create an app in addition to a website. Moreover, by joining the expanding e-commerce sector, an online business that makes use of this instrument may expand its audience reach.

7. Commissions on Transactions

In addition to selling your own items, you may earn a solid living by brokering the products and services of others in exchange for a commission. In particular, this concept is used by the well-known firms Uber and AirBnB. This business model is presently used by taxis, reservations, delivery services, medical providers, and other online-related businesses.

Based on this monetization strategy, aggregators and internet marketplaces are an intriguing kind of company. An app for meal delivery that facilitates ordering from nearby eateries is one example. This software serves as a single window, combining offers from several providers and taking commission fees from each purchase.

In order to enable businesses to leverage global talent and maximize efficiency in delivering high-quality software solutions, offshore development services entail outsourcing software development tasks to a team located in a different nation or region. This team is typically chosen for the project because of its cost-effectiveness, access to specialized skills, and ability to scale resources according to project needs.

8. Partnership/Sponsorship

If other brands or businesses in a certain niche are eager to get in touch with your app’s user base, you may want to think about this option. As the owner of the app, you have the option to charge for ad impressions or leads generated by your users in exchange for products or services offered by another business.

Examples include compensated job offers, event announcements, and sponsored content in media applications.

Which Mobile App Monetization Model Should You Use?

I cannot give you a definitively proper response to this topic, but it has always been a pressing problem for every developer. Because the mobile app industry is evolving, so too are the approaches for monetizing mobile apps.

Numerous considerations, such as the product subject, the preferences of the target audience, the objectives of the developers, the resources at hand, and so forth, impact the decision to choose one alternative over another. The majority of developers take a novel solution to this problem, integrating many revenue strategies into a single program to cater to a diverse user base. Others test out different approaches to see which is the most lucrative.

At Linkitsoft, you must understand that app monetization is one of the key elements of your future project’s business strategy. If you do not devote the time and resources required to develop a lucrative mechanism, even a successful product may end up losing money.