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Free apps usually do not have a major method of receiving money back as a reimbursement for your investment. But you can still make money through an app. Your immediate question would be, ‘How do apps make money?’ Whether it is an iOS app or Android app development company you ask, both have the same answer.
The answer is app monetization. There are several techniques, and anyone can use them in their app.
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Monetization methods are how apps make money without having to become paid to download (Paid app) directly. However, you should note that a sizeable user base is required to start earning well from these monetization methods.
These various techniques offer your app alternative methods to receive returns from your free app. Take a look at all the ways your mobile app can become a fruitful investment and return the money, even if it is a free app!
If you are wondering how apps make money, this is perhaps the most common way of earning from a free app. Advertising is the best way to use up vacant space while still being able to earn money for it.
In-app ads can appear in several modes and it is up to the app owner to choose what type of ads to use and where exactly to place them. Various ads available to the app owner are Interstitial ads, Banner ads, Video ads, Native ads, and Text ads.
This monetization model works by displaying ads. However, these ads only become monetized only after a user clicks on the ad. Before this, there would be no reason for the advertiser to pay yet!
Most apps start off as free but still have extra features that will be paid for, this is the Freemium model. The app usually offers a short trial period to new app users through which they can test out the features. After this, the users can decide if they want to pay for the extra features or not.
Examples of premium & freemium features include:
You are most likely to see the paid subscription monetization plan present in software-as-a-service (SaaS) products.
In such monetization schemes, there is the opportunity to pay for the upgraded subscription on a weekly, monthly, or even yearly basis! Regardless, the option is constantly available to users who are looking to gain access to the app’s services at any given time.
Examples of applications that have paid subscription plans are Netflix, Spotify, and Disney Hotstar to name a few.
If searching for the best online app to make money, SaaS products tend to be the top-ranked in doing so.
Also Read: Best Ways To Earn Money From Your Android Apps
An affiliate partnership harnesses the power of two brands (apps) to fulfill monetization purposes. If the two apps were able to advertise the other brand, it would lead to conversions as your app would be presented to a wider audience.
That said, the more apps you partner with, the higher the chances of increasing monetization revenue.
Affiliate Links
Affiliate linking has long been used as a beneficial SEO activity that helps a website benefit from a website with better statistics.
The same strategy can be applied to a mobile application as well. Instead of using a link, you could alternatively use an image or video ad.
Using crowdfunding as a monetization technique actually requires you to start the process before you develop a fully-fledged mobile application. It can be especially useful when you don’t have enough funding to develop your app.
Make an MVP and launch it on one of the platforms mostly utilized for crowdfunding software startup ideas. These platforms act as a launchpad for startup ideas to be sponsored and anyone has the ability to donate a certain amount for the MVP to be developed into a full app.
You can choose to leave the MVP app up for however you like and the donations can continue to stream in. They could stream in faster if the audience is really enjoying your MVP and wants to see the full app soon!
You may find this concept more common in mobile game apps where there is a greater incentive to play a game than to watch a video or install an app.
Incorporating limited edition objects and limited time to earn them can increase the number of players accessing and using the app during these times.
This would undoubtedly contribute towards the amount earned through the gaming app.
Talking about play to win, Check out these Free Money Earning Games like Callbreak
For a first-time mobile app owner, navigating the world of monetization can be tricky and confusing, to say the least! But, this doesn’t hide the fact that you need to include some sort of monetization method to make owning an app more financially rewarding.
Before jumping into a monetization strategy, you should probably take a look at what app niche you want to develop. This could be a game, messaging app, or eCommerce app. However, the same monetization method may not be as effective for all types of apps.
Thus, a monetization strategy must be customized based on the type of application that is to be developed. Certain app and monetization strategies perform better than others.
The target audience plays a great role in deciding the fate of your monetization strategy and possibly your app as well.
Target user age, gender, location, and spending ability all contribute to the likeliness of them paying and committing to your monetization attempt.
What products or services are your target audience most prone to spend on? What other interests does your audience have?
The above questions will go far in ensuring that you know exactly what could lead to higher financial gains using various monetization strategies.
Using the concept of ‘trial and error’ you will have to test a few techniques to see which is the most effective (i.e. most rewarding.)
Don’t feel disheartened if the very first attempt doesn’t yield the best results! App owners can chop and change as per their needs to fulfill their monetization requirements.
You may even find it worthwhile to test all the monetization methods available to you during the first few months of your app’s launch. This would find the best one as well as put to rest any regrets or doubts you may have.
To make monetization attempts more successful you must take a look at a few more factors that will influence pricing. These factors include the user spending capability of the target audience, competitor pricing, and the size of the user base.
After considering all of these factors, you should be able to arrive at a more than appropriate pricing plan for certain monetization methods and arrive at one that’s just right!
Based on certain data derived from assessing your app, you will probably be able to find some valuable data. This data will be enough to give you insights into what monetization method will suit your app best and provide the best monetary returns.
Ignoring the data will work against you and may be a leading reason why the monetization strategy isn’t working. Checking the metrics before and after you implement your monetization strategy is essential!
The reason is that the addition of these ads will definitely contribute to the user experience of the app. It may positively or negatively affect the user experience provided. Based on the before and after values, you should make a decision on whether or not you want to keep this specific monetization strategy.
As you can see, there are several methods by which an app owner is able to make money from a free app, any mobile app development services provider will tell you the same. The best online app to make money usually makes use of a mixture of monetization methods, the most rewarding in terms of price being video ads.
Now you know how apps make money you can implement them. But don’t have your mobile app yet, you can develop a mobile app (Android / iOS) with Artoon Solutions. Just Contact us to start.
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