Developing apps can be both time-consuming and costly, but the financial rewards can also be quite significant. This is why the app marketplace continues to increase as developers strive to create the next Angry Birds, Viber or Evernote. If you are thinking of creating an app and are wondering how you will turn it into dollars and cents, look no further. Here are a few strategies for app monetisation.
1. An app with a price tag!
The first strategy is also the most obvious. When you introduce your app into the marketplace, give it a price tag. The thing to bear in mind here is that the majority of apps out there are free and of course, people are loathe to part with their money.
Ask yourself the following questions: does my app offer a real, useful function? Is it addictive? Is it unique? If your app has a free competitor that provides the same function or if people can take-or-leave it, you will not get very far.
2. Free version and a paid version
A great way to take advantage of both worlds is to have a free, trial version of your app and a paid version. Again, the success of this strategy is dependent on your app and its attributes. Namely, you need to decide whether your app is addictive. If you give your users a taste, will they want more?
3. In-app purchases
What is an in-app purchase? Think about a game you have downloaded and played on your phone. Were you given the option of purchasing intangible game money or weapons? Or maybe you wanted to unlock a new game level but had to pay for it? This is a popular approach for game and news apps and once again relies on the addictiveness or usefulness of the app’s content. In-app purchases can be once-off or reoccurring.
Mobile in-app advertising is another common strategy employed by developers who are confident that their app will rake in the views and clicks. How does it work? Choose a mobile advertising network such as AdMob, iAd or AdColony and download the relevant software in order for ads to appear in your app. Alternatively, you could get an online advertising company such as Brus Media to do all the work for you!
Each time a user clicks on an ad, you will be paid a certain amount; the amount of money you receive depends on the cost-per-click rate you have. While in-app advertising does work, the financial benefits are small unless you have enormous traffic. Don’t expect to be a millionaire overnight.
Based on the cost-per-click concept of advertising, cost-per-install marketing involves advertising other apps and receiving a certain amount of money for every resulting install. You will probably have seen this while playing a game; just as you finish a level, an ad pops up asking you to check out another really cool game!
Approaching a company and asking them to sponsor your app requires real confidence, so this may not be something that a first-time developer would be comfortable with doing. However, if successful, this is a fantastic way to turn your app into a cash cow.
Not only will you receive money for actually creating and delivering the app, but you will benefit from having brand credibility and even possible free online marketing from the sponsor. This will of course lead to increased traffic, which we know can result in financial profits.
Hopefully you’ve found this article informative and helpful. What are your thoughts on app monetisation? Let us know by commenting below.