Monetize Your App While making Your Customers Happy!

Our mobile phones are truly smart with a myriad of apps available frequently. Though mobile apps are posing a serious competition in the market, many entrepreneurs are eager to develop new apps because they believe that a solid strategy of app development can make money efficiently.

For a successful profitable app, there are three major monetization models. They are:

Free apps – which supports in-app advertising

Freemium apps – which supports in-app purchases

Paid apps – which relies on one-time payment of a fee

While you plan for developing an app, it is critical to choose the best suitable model to monetize your app. Say, for example, Paid apps can be a risky endeavor – your app features should be worthy of what users are paying. Free apps have to target more downloads and installs. Freemium apps have to design with improved app experience that is smart enough to increase in-app purchases. Therefore, select a business model that suits your business requirements.

Moreover, not every user is willing to pay either to buy an app or to block ads. The willingness to pay also varies based on the type of app developed.

app monetization

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App Monetization Facts

  • 67% of users won’t pay to block ads
  • eMarketer estimates 50% of UK ad spend will fall for mobile by 2016
  • 50% of app downloads are lead by search ads
  • 3 out of 4 people are expecting apps to be free
  • Video streaming apps drive the revenue in Q2 of 2015
  • Around 90% of customers abandon an app if it failed to engage them
  • App usage peaks on Sunday
  • First 30 days are vital for user engagement


Different Monetization Models

Free apps (In-app advertising)

In this model, you provide the customer with free purchase and download of the app. Your goal is to grow an enormous user base and acquire information about the people interacting through your app. This data helps you get paid by the app publishers, who place targeted ads in your app.

Say, for example, Facebook doesn’t cost anything to download or usage. They leverage their data to profit through highly targeted ads.

Free apps monetization

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As people love free apps, it allows you to attain users quickly but users can get disturbed of ads, which may lead to app churn.

Freemium apps

This model is purely based on ‘try before you buy’ concept. Through this model, a customer can use basic features for free but they will be charged for proprietary features. The goal of the freemium model is to attract people and engage them until they are willing to spend for further in-app tools.

We can consider Angry Birds game for example. The Rovio team hid additional levels and certain features until users upgrade to full version.

Freemium apps monetization

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However, app marketers must be careful while providing free features in the app. There should not be too many or too fewer features for free. Your app experience has to be superior that can convince a user for an upgrade.

Paid apps

This model refers to the direct sale of apps. A user can purchase the app directly from the app store with a one-time fee. Finding success with paid apps is based on your ability to exhibit the perceived value of the app with an exhaustive app listing that includes screenshots, a detailed description of the app, five-star ratings, etc.

For example, Calendar 5 costs $4.99 in iTunes store. The app listing page of Calendar 5 display rich screenshots with a sleek design, description of important app features, and reviews about functionalities, which can convince a customer that it is better than their mobile’s default calendar.

Paid apps monetization

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As you encounter a tough competition from free apps, selling an app is so hard with minimal app experience. To monetize from paid apps, you must provide the customer with killer features that justify their pay.

To monetize your app successfully, choose a business model that is more appropriate to your app requirements. There are lot more things to consider while developing, advertising and marketing an app. Hence, we are here to help you in maximizing the potential revenue.

Vmoksha has a proven track record of developing and managing mobile apps that generate greater value for the business. Our professionals work hard to design a truly great app and deliver robust application maintenance solutions that improve ROI from your applications.

About Surya Baby

Surya baby works at Vmoksha Technologies as a Digital Marketing Executive. She is passionate about exploring Digital marketing trends. Apart from work, she likes listening music and sketching.

2 comments on “Monetize Your App While making Your Customers Happy!

  1. Vijay

    Good. Superb

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