As the world goes increasingly mobile, so too do our money-making opportunities. In 2021, mobile app revenue reached an all-time high of $34 billion dollars, and by 2023 it is estimated to balloon to a whopping $935 billion.
With numbers like these, it’s no wonder that so many people are interested in learning how to monetize their own apps. If you’re one of those people who are confused about app monetization, don’t worry – this article will clear things up for you.
In this blog post, we have covered:
- What is mobile app monetization?
- What are the benefits of app monetization?
- Tips to monetize your mobile app
What is mobile app monetization?
Monetization is simply the process of making money from your app by offering goods, services, or content to users. Because people are spending more and more time on mobile apps, this provides a great opportunity to engage them with your content and make some profits.
There are many ways to monetize your mobile app. However, the most important factor is engagement – if users are regularly using your app, they are more likely to be willing to pay for features or content. Keep this in mind as you develop your monetization strategy.
What are the benefits of mobile app monetization?
Below are some of the major reasons why you should monetize your mobile app:
- It opens a new door for revenue for you.
- You can cover your mobile app development & maintenance expenses.
- You can spend more on marketing & advertising your mobile application.
- You can also consider selling your mobile application at a premium cost if your app is already making money.
Now that we know what is mobile app monetization and why you should monetize your app, let’s have a look over some of the best ways to monetize.
The 7 best ways to monetize a mobile app
#1 In-app advertising
This is one of the most common monetization strategies that most app developers and entrepreneurs use.
By placing advertisements that don’t interfere with the user experience, you can make some extra money without annoying your app’s users.
For example, banners and native ads placed at strategic locations within your app, such as an exit ad when people are leaving or at the bottom of an article, can generate revenue without being obtrusive.
Suppose you are reading a news app on your mobile device and come across an article you want to read. After finishing the article, you may see an exit ad before being taken back to the menu to explore other options. This is just one example of how in-app ads can be used to generate revenue without disturbing the user experience.
#2 In-app purchases
In-app purchases are an effective way to monetize your app, especially if you have a small audience. By creating some additional value for people who’ve already downloaded your app and are active within it, you can encourage consistent engagement by offering new content in exchange for a small fee.
In-app purchases create a sense of loyalty and specialness around your brand — customers see you as a company that cares about their needs and wants, rather than as just another business trying to earn money from them.
Another most popular method to make online through the in-app purchase model is to offer paid content. Yes, you can write premium content and encourage users to subscribe to your content.
You can also seek the assistance of your app developer to get more ideas about the in-app purchase business model.
#3 Selling goods or services
This is perhaps one of the very basic and no-brainer ideas to make money through your mobile app. You can sell your products or services online through your app. Just like building an eCommerce website, you can create an eCommerce app that will allow you to sell your products or services online.
This kind of mobile app is not very time-consuming and can be developed at an affordable cost. You can hire an affordable app development agency and get this job done without breaking your bank.
If you are on a budget, you can also consider hiring Indian app developers who can help you to save more than 30% of your overall app development cost that you would have paid if you hired a local app developer.
#4 Subscription-based services
You can also monetize your mobile application by offering subscription-based services. For example, you can build a useful mobile application for accountancy & finance management for the users who need it. This app can make their lives easier. Your customers will be happy to pay you on a monthly or annual basis to subscribe to your mobile app.
These kinds of mobile apps take time, expertise, and cost to build. Therefore, you must make sure that you hire only professional app developers to build this app. Otherwise, you may end up losing your money, time, and energy in working on a project that will never be successful.
This is yet another popular method to monetize your mobile application. You can build a marketplace app that will allow the sellers to signup and post their products or services.
At the same time, this app will allow the users to browse the products or services on your app and purchase them. The sellers get their money after the deduction of a fee or commission that the mobile app owner will charge.
A marketplace app is an extension of the eCommerce mobile app. The only difference is that in the case of a marketplace app, different sellers can publish their products and sell them online while in the case of a basic eCommerce app, only one seller can upload the products.
Do you also want to build a marketplace app? Hire a mobile app developer now!
Affiliate marketing is a great business model to monetize your mobile app. You can join an affiliate program, showcase it on your mobile app, and send referrals to the merchant’s website to start earning a commission. This is a great way to make money from your app without having to sell ads or in-app purchases.
#7 Freemium service
A freemium product or service is one that is offered for free, but with the option to upgrade to a premium version for a fee. This business model is often used for apps and digital products.
The idea is to offer a basic version of the product or service for free, in order to attract users and get them hooked. Once they are using the product or service and see the value it offers, they will be more likely to upgrade to the premium version.
This can be a great way to monetize your mobile app, as you can generate a passive income from users who upgrade to the premium version.