Analyze the mobile app idea before creating the application
Before we determine how you can earn money from a mobile app, you must analyze whether your app or app idea has the potential to get conversions.
The app market is crowded and competitive. For this reason, market research is imperative for getting the desired app idea. Depending on your app idea, its capabilities, and the problems it can solve for your targeted audience, you can decide whether to create an app for it or not.
Evaluate every app idea that inspires conversions, choose the best one, and consult experienced mobile app developers to create the app using the best tools and technologies.
In most scenarios, successful apps have a user-friendly design. Confianz, an experienced mobile app development company awarded by Clutch, can create that for you. Our company empowers you to achieve the desired results.
Best App Monetization Methods for iOS Apps and Android Apps
As an app owner, you can use the most common and proven strategies for app monetization to quickly start making money from your mobile app.
Now, let’s deep dive into the best ways to make money from mobile applications:
1. Having a free app versus a paid app to earn money
A free mobile app means the app is free to download and does not ask users to pay for it. Most of the apps available for mobile devices on Google Play Store or Apple App Store are free of cost. On the contrary, only a small percentage of apps are paid ones. As per the October 2023 analysis, close to 97% of apps available on Google Play Store are free. Offering an app for free always attracts users.
You can also keep in mind two considerations before you decide whether you want to offer your app for free or not:
a.) Offer a lite version of your app to its users: Free apps make money. If you want to make money from free apps, you can offer a lite version of your app for free for all users. It will help them to use your app and understand that the premium app content is available in the original version of the application if they pay for it. It is one of the ways to make money from an app and attract more customers. These apps are also called freemium apps.
b.)Analyzing if monetizing your app now is feasible: If your company has less brand visibility for your target audience or hasn’t been in business long, it is ideal for them not to have a paid app now. Also, companies that are more established and have a broader customer base have more chances of gaining customers through this strategy.
2. Mobile ad or In-app advertising methods to earn from your mobile application
Once your application has launched into the iOS App Store or Google Play Store, it is a good idea to display advertisements for it. It is also one of the popular app monetization methods:
a.) Mobile Advertising
Showcasing commercials on apps is a great way to make money without asking users to pay anything. This is why mobile advertising has become a popular technique to earn money from apps like mobile game apps, streaming apps, etc. It is possible for the users to click or view the ad or merely install the mobile application by looking at it. However, you must analyze whether it is an in-app video, interstitial, native, offerwall, push notification, or banner ad that suits you most.
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- In-app video ad: In-app video ads reward users. For example, by watching the ad, they can unlock new stages in a game or be rewarded.
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- Interstitial ad: This kind of ad tries to grab the attention of an app user by showcasing an ad covering the entire screen with a pop-up.
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- Native ad: Native ads never appear prominently like a pop-up but merge naturally into the app page and do not offend a user using an app. Because of this, they are good at user engagement and driving revenue. Native ads are also a good choice for affiliate marketing.
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- Offerwall ad: Offerwall ads reward users with features, virtual money (like coins) when they make a purchase, upgrades to new levels, etc. This monetization policy works best with game apps.
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- Push notifications ad: A push notification ad pop-up appears if mobile app users have subscribed to the application for promotional or special offers, notifications, or news. Once the user clicks the notification, he will be redirected to the relevant page to buy a product or read information. This way helps to market your products or services to the target audience and earn through it. Push notifications are an effective strategy to earn money. It will likely make your app earn well as it has a good CTR (click-through rate).
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- Banner ad: Banner ads do not occupy the whole screen. It uses a part of the screen without disturbing the user’s current operations.
You must also check the kind of ad and its duration before you promote it on your app. These factors are vital to consider as the user may or may not be interested in seeing it.
1. You can earn by asking your users to pay for the ad-free version of the app. This strategy provides users with an enhanced user experience by providing them with the app without ads.
2. Running social media ads for your app for a limited period can help bring people and produce income from the app.
3. In-app purchases technique inside the mobile application
In-app purchases are a great technique to earn through your app. In this technique, you can attract customers by offering a free version of your app that they can use and then ask them to pay if they wish to access more features. One of the most famous examples of a mobile gaming app is Candy Crush Saga. This game provides extra moves if you want to pay for it. In addition, apps like Clash of Clans are also popular due to their in-app purchase feature. Thus, an in-app purchase feature is also one of the ways to earn through your app because if users love your app, they may not mind paying to access additional features.
4. Subscriptions help make money with mobile apps
The subscription technique is another clever way to earn money through apps. This technique often gives users a free trial period to explore the app. Once the duration ends, users must pay to access the services. To keep the subscribed users engaged, app companies must try to keep creating fresh and user-friendly content. If your offerings are eye-catching and beneficial for the users, they may be willing to pay the subscription fees repetitively, gaining you loyal customers for the subscription apps.
5. Sponsorships
Finding a sponsor for your app can help you gain customers. The sponsor must be the one who wishes to invest in the same target market as yours. In addition, your developer must make changes to the current app by taking inspiration from the sponsored brand. Generating revenue from the app can be done in the following ways:
1. The revenue generated by your app can be divided between the sponsor and your company based on predefined terms and conditions.
2. Paying monthly sponsorship fees to sponsors will give your brand more visibility amongst prospective customers and increase your online presence on different social media channels.
6. Selling products and merchandise
One of the effective strategies to earn through your mobile app is to sell your brand’s products online through the app. You can also try selling by email marketing, which generates revenue and creates awareness about your brand. It is especially helpful if you have an e-commerce app to display and buy products. However, attracting users to download the app is the biggest challenge. That is why the app should be free to download. It can help with brand visibility, revenue generation, and repeat customers if they love what you sell.
7. Affiliate programs
By joining affiliate programs like the Amazon Associate program, your application can earn by referring services and products of the affiliate company to your users using the app. In return for the sale, your app will earn a commission based on these affiliate marketing models.
a.) Cost per action: This means you can earn by promoting an app, or advertising other apps.
b.) Cost per click: The number of clicks received on any ad promoted by your app can help you earn through it. Many popular networks provide advertisements to generate income by showcasing the ad on your app.
c.) Cost per view: This model enables your app to earn through ad views. Interstitial ads or video ads are great ways to advertise offerings.
d.) Cost per install: In this model, your app gets paid for every install of the advertised app.
8. Crowdfunding
In this process, you can present your app idea and request a group of individuals to donate to your app through an online platform. If the response is positive, and people or companies are ready to fund your app, you can go ahead with your plan to develop it. If the response is not in your favor, you can weigh whether you wish to go ahead with it or not.
Drawbacks of crowdfunding: Though crowdfunding can help you with funds and learning about your consumer choices and preferences, it may also be risky.
1. Suppose you approached individuals or investors to fund your app but did not reach your fund target. In this case, you may have to return the money.
2. Building trust in your audience could be difficult, as crowdfunding is prone to scams.
9. Transaction Fees
Apps can earn by charging a transaction fee in return for the commercial or financial services they provide to their customers.
Which app monetization model helps you make money from your mobile app?
Though many app monetization strategies are available, the best one for your business depends upon your market research. By exploring other competitive applications, you can know which app monetization model fits best for your app. You can start step-by-step with one app revenue strategy at a time and assess its success. It will help you analyze how much money you can make from the above strategies for app monetization.
Can you have a mobile website for your app?
Creating a mobile website can complement your app to help you reach a wider audience and market your offerings. On the contrary, building an app serves a specific purpose.
Let Confianz create your mobile app with our Mobile App Development Services
Monetizing your app can help you gradually build your brand image and know your customer choices and preferences. This is why apps play a vital role in making your business successful.
Our team at Confianz can build a mobile app tailored to your business needs that you can monetize after launching it on the iOS App Store or Google Play Store. Connect with Confianz today!
