Designing and developing a great mobile app, with thousands of users is great, but unless you are creating an app for product or company awareness, you will want the app to make you some money!
We dive into the 5 best ways of monetising your mobile app.
1. The Freemium Model
The freemium strategy involves creating a free version of your app, and a premium version of your app for which users would pay.
The free version of your app could include reduced features and advertising, and encourages maximum uptake on your app, to get the word out and create a larger user base from which to promote sales of the premium version of the app.
The premium version could include more functionality and no ads, and could be paid on a subscription basis, or a once-off payment. For the premium app, it is even more critical to provide an excellent user experience, to ensure the customers are getting their money’s worth.
2. The In-App Purchases Model
In this model, the app is usually offered as a free app, and customers are encouraged to make in-app purchases.
This is particularly popular in gaming apps, where customers can pay to advance quicker through the game or gain extra lives.
This option can also be used to unlock certain functionality in an app (Similar to the freemium model) for example in a dating app when you would unlock certain features via in-app purchases.
3. The Subscription Model
Using this strategy apps are free to download, with additional functionality being unlocked with a monthly or yearly subscription. This option is particularly popular with apps that involve content. (For example, the Headspace Meditation App or news apps)
These content apps often offer a certain amount of initial content at no cost, and then require a subscription to unlock all content.
In content apps, there is usually an actual cost for generating the content, and these costs can be off-set with the subscriptions paid by your customers once your user-base has increased.
4. The Paid App Model
These apps are usually apps that offer features that a customer is unable to find elsewhere, and is most popular with apps that offer productivity related services that may save the customer time and money.
If a customer finds that the app is saving time and money, they are much more likely to agree to purchase an app that offers unqiue productivity tools.
5. The Transactional Model
Transactional apps, such as FinTech related apps, earn money through percentages of transaction volumes, for example an app involved in purchasing Bitcoin or currencies using a block-chain.
These apps may also take a small percentage off the exchange rate in exchange for the functionality of the app.
In summary, these are the top app monetisation strategies we use in our apps. There are many other app monetisation strategies available such as data monetisation, (Selling anonymised customer behaviour insights) and the app partnership model (Where you partner with a brand), but the 5 mentioned above we feel are the most popular and effective.
Give us a shout here to chat about how Refresh can help monetise your mobile app.