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How To Monetize Your Mobile Apps?


From finding directions on Google maps to playing AR games like Pokemon Go, Mobile Apps have come a long way in the consumer and enterprise software industry. Entrepreneurs and experts have found solutions to some of the most complex problems in our lives. However, still, a lot of Mobile App publishers struggle to thrive in the continuously growing app economy.

So, how to monetize your app while dealing with the ever increasing competition?

Feature-based pricing

under this approach, the app publishers should focus on the elements that have a direct impact on the pricing of the app. This involves understanding the engagement level of the app and the various interaction points/features within the app. Furthermore, the utility of the app in the target consumer segment is another relevant factor to consider under feature-based pricing.

Advertising in free apps

This is mostly used by the free apps. Advertisements are placed in various slots inside the app interface. This method works well for apps with a significant user-base and a large no. of downloads.

In-app purchases

This one works like a charm for gaming apps. For example, consider sniper fury for Gameloft. As a part of the gameplay, users may receive advanced weaponry by purchasing game credits in form of in-app purchases

Subscription-based purchases

The subscription model works well for selected categories of apps such as high-quality magazines, news dailies, and comic-book rentals. Under this monetization scheme, the users receive access to the content of the apps for a limited duration. For example, Marvel Unlimited app provides access to over 20,000 comic book titles with a validity subscription plans on a monthly and yearly basis.

 Pay once and use

This monetization model is suitable for apps which are made as a tool or a utility to solve a problem or improve the experience of the user. The future updates in this monetization model are considered to be free. It is a perfect choice for apps which don’t have a lot of users and are low in the engagement factor.

Pre-bundled with device purchase

This basically refers to the pre-installed app which comes along with a device purchase. Usually, this is a part of an agreement between the manufacturer or the telephone carrier. Furthermore, app publishers should try not to make the bundled app appear as ‘bloatware’.

The Takeaway

The aforementioned approaches are the basic ways of monetizing a mobile app. In addition, a  hybrid approach combining any of the above leading to a new monetization model is also possible.

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