Getting a user to convert is more challenging than ever. They can drop apps for no particular reason or skip over products with a price tag. Thus, nowadays, many app developers aim for less direct revenue-earning methods. Instead of requiring payments and charging users, they opt for strategies that slightly inconvenience the users yet give them plenty of freedom to use their applications. In other words, they manage to keep applications free of charge while sustaining a stable profit. Let’s discuss the main methods used to achieve this goal!
Earning through ads
Ads
are classics; no users are surprised to see them on websites or applications.
Yet, while interstitial, video, or banner ads are typical, users have developed
some expectations. For example, they want to see engaging ads that are not
highly intrusive (like depicting ads based on their activities outside the
application).
Additionally,
they want ads that won’t diminish their app usage. That could mean serving ads
as a way to receive some rewards or special perks within the application. So,
even if ads might be a simple way to earn money without charging users, developers need to integrate them by
attempting to preserve the user experience.
Microtransactions
You
might think that microtransactions don’t suit the need to earn money without
charging users. In reality, they do not prevent people from using the app.
Users can likely enjoy the app without needing to purchase some in-app
elements.
Yet,
microtransactions open a window for revenue from people who value your
application and wish to see or have more. So, you get to build a free user base
that brings you money from ads and the other users that spend some money. The
most common examples are mobile games that let you purchase in-game currency.
Then, you can boost your gameplay, receive rare items, or continue to play for
longer.
Picking freemium
Besides
offering your app for free, developers can consider including premium versions
for interested clients. Typically, it means that the basic version of the
application is available to anyone without any payments. However, if people
wish to have more or lift certain limitations, they must purchase premium
subscriptions.
Many
apps embrace this concept, but it can take time to get the balance right. For
one, you don’t want to offer too much for the free users to remove the need for
upgrading. On the other hand, you wish to keep it interesting enough so that
free users also continue bringing revenue through other means (like ads). So,
it might take a few iterations to see which combination works best for your
application.
More unique monetization
Developers
should take the time to explore the available app
monetization strategies. Suppose you aim to preserve user experience
and monetize your app more seamlessly. That could mean exploring opportunities
to earn via data-sharing (with great attention to consent and legal
requirements) or partnerships. However, you can also find unique SDKs (Software
Development Kits) that aim to improve your monetization journey. That could
mean choosing ad networks that specifically cater promotions to your targeted
audience.
In
other cases, that could mean offering users the chance to receive premium or
special perks by agreeing to share their unused internet bandwidth. The best
thing is that you don’t need to limit yourself to just one monetization
strategy. You can use multiple ones if you manage to integrate them
appropriately.
Crowdfunding and donations
Many
app developers have set up the option for users to donate money. This action is
voluntary, and not all users will choose to do this. Yet, people who see value
in your application and wish to see it maintained (and available for free)
might be inclined to support the developers’ journey.
Affiliate marketing
Only
some applications can use affiliate marketing successfully. An
example of a great integration of this strategy would be a fitness and health
application. It could include links to various services that offer products
from recipes or workout sessions.
You
can partner with different brands and earn money through sales completed via
your link. Of course, it’s also crucial to disclose such partnerships and stay
true to offering products of the highest quality.
Selling to other developers
Sometimes,
your application does not need to generate money from its users. You can profit
by selling certain features that suit other creators. In other words, you sell
parts of code to other developers who might not wish to spend time on building
it manually.
Conclusion
App
developers have a lot to consider. The development stage takes time and
requires extensive testing and alterations. Yet, deciding on the monetization
aspect is crucial. Of course, only some monetization strategies work for all
apps. Thus, it is recommended that developers conduct market research,
reviewing their competitors and market trends. That will showcase the options
to which users are most comfortable and can be the most successful.
