Modern businesses require some touch of technology to as a marketing and growth strategy. As a business person, you will inevitably need to develop a consumer-based software in the form of mobile apps so as to reach more customers. A user-friendly mobile app will significantly boost your business. However, you will need to make additional income from the application to reduce the costs of software maintenance and still make some profit. This brings in the idea of monetization which you must implement strategies to avoid failure. Basically, you can monetize your mobile app by charging the users for downloads. In this case, the chances of success are very slim due to competition from similar applications that do not charge download fees. But that’s not the end of the road for you, we have analyzed for you 10 monetization strategies that pose no risk to your business.
This is the best strategy that you can apply to monetize your app. While developing the mobile app for your business, you can add the advertisement functionality for third-party users who pay you depending on the number of views. You can implement this strategy by sourcing for third-party advertisers and come up with advertisement formats that they can use to promote their business on your application. Additionally, the advertisers will pay you depending on the formats which might be banners that appear on the edges of the application interface or interstitial ads that cover the entire screen to attract the attention of the users. Third-party ads may also appear as capture forms and native adverts that even collect user data and provide suggestions to visit the advertiser.
Implementation of In-App Purchases
This is an effective strategy to monetize your application without necessarily charging for downloads. Basically, this functionality allows the application to include additional premium features that the user is required to purchase. The In-App purchases may also be implemented such that the users can access the information on the app to a certain extent only. As a result, they will need to subscribe for advanced access. For example, the mobile gaming industry make money through In-App purchases by asking users to pay real money to get extra gaming features and capabilities.
This is a monetization strategy through which includes developing good applications that optimize the user experience then vending the application to third-party businesses whose products do not even appear on the application interface. This is basically sharing a similar application functionality among many product brands as long as the application has received a good market review. This will in-turn help the other business to sell more while earning you some money.
As we have stated earlier, mobile applications that charge for downloads are an imminent failure due to competition from similar free apps. However, you can still develop Paid-Only applications for popular product brands that can still receive positive feedback from the subscribers. Some mobile applications such as the anti-virus software will still earn the profit as Paid-Only applications since they offer the customers with essential services on a daily basis. Additionally, well-designed applications that are secure and flexible have higher chances of earning you more profit by proving users with a regular service.
Using the Freemium Model
This is an important strategy that you can use to monetize your applications. This implies that your application is designed with basic functionality that is free for all users while still implementing additional premium features that the users will need to pay for. As long as you design the application with optimal usability features, the users will be more willing to upgrade for premium access to the additional features of the application as they will have more value for their money. GPS and fitness apps are among the most common freemium apps.
Affiliate marketing and lead generation
This is an important app monetization strategy that you can use to earn profit from your application. This includes integrating a functionality through which the application can promote products by other business for a fee. However, this strategy is different from others such as advertising since you will earn a set commission for every visit or download to the affiliate companies. Lead generation can also be implemented in this strategy to attract potential businesses to spark customer interest. In this case, you receive a payment for every transaction that is initiated through your application.
You can also monetize your app by designing it such that it collects and sells big data to other businesses that need it to understand the market environment. For instance, you can design your app with functionality that collects data regarding customer needs, product preferences, and habits to help other businesses to understand their market dynamics. Third-party businesses that buy big data normally use it to make important business decisions while earning you profit.
In case your niche involves an online marketplace where people buy and sell merchandise, you should design your app to securely process transactions on behalf of the customers while you earn from the transaction fees. This venture is quite profitable as long as your app gains positive user-approval based on a set of security and flexibility parameters.
If you design your application such that it requests every user for personal data such as emails and mobile phone numbers, you can earn profit from the app by using the information for SMS marketing. This happens by sending the contacts messages to advertise new products and services.
User-subscriptions is another strategy that you can apply to effectively monetize your application by integrating the free download access feature with the enhanced access feature. Basically, you will allow the users to access some basic information to help them to understand what products and services are offered by the app. Armed with the sufficient information, the users will then decide whether to subscribe or not. If you design a good app, the users will subscribe, and you will make a profit from the app.