Monetization Strategies for Mobile Apps that Pay Off

You had a Million-Dollar Idea and turned it into a fully-functional App that your users find worth their time, and you're wondering if they also find it worth their money. Monetizing your App to generate revenue and pay off the bills and earn an extra dime or two is the eventual goal.  

So, how is it done? How do you Monetize your App? Well, consider all the big Apps you can't go more than a few days without. Disney+ follows the subscription pattern, Spotify follows the freemium method, Gaming Apps leverage In-App purchases and so on.  

 
You need to know all the ways to decide which way you want to go.  

Here are the top monetization strategies Apps are already following to make money:  

In-App Purchases: If you already have a user base, in-app purchases are a way of making money by offering lucrative premium features, virtual goods, or additional content for a fee. If your users are invested enough in your App, they're most likely to put in some money or pay to gain an advantage, for instance, an extra life to get ahead of their competition in a game.  

Example: Offer virtual currency or extra lives in a game for money. 

Advertising: Once your App has a vast user base, Advertising becomes a key revenue generator. Impressions, click or conversions, you name it. You can find ways to integrate advertisements of various formats, including banners, interstitials, native ads, or video ads in your App to earn a dime. These ads help generate revenue without charging the users.  

Example: Games, such as Subway Surfers, offers to double up coins if the player watches a video ad. 

 
Subscription Model: Propose exclusive content, services, or features for a recurring fee to generate revenue through your App. The users are often willing to pay for better functionality, enhanced productivity and a personalized user experience, provided that the same isn't available for free elsewhere. Make sure you offer enough value for their money. 

Example: A yearly subscription to a video-on-demand streaming service, such as Netflix 

 Affiliate Marketing: A way of monetizing your App is to partner with companies to promote their products and earn a commission for each sale. It involves including affiliate links in the App, promoting products or services through advertisements or offering incentives to entice users to make purchases through the links. 

Example: A Travel App promoting hotel booking service within the App 

 
Freemium: In this strategy, you offer a basic version of the App for free to everyone to ensure you have a vast user base. However, users can upgrade to a premium version to enjoy additional features, virtual items or services, which are lucrative. The free version allows users to test the waters before committing to a paid version with more features.  

 Example: A basic, limited, ad-supported service for free and an unlimited premium service for a subscription fee, such as Spotify 

 
Sponsored Content: Again, promoting brands using immersive or engaging content through your App is a key revenue generator. It is different from advertising as the content is relevant and of high quality, and fits into the App seamlessly without appearing like a banner or a pop-up.  

Example: Ads for individual product listings on an App, such as Amazon 

Branded Version: If you want to monetize your App, one way is to create an App for a specific brand or company by tailoring it to their needs and branding. Customize the look and feel and add personalized features. Creating a branded App is a significant investment and can eventually help in generating revenue.  

Example: A dedicated App for a quick service chain. 

Cross Promotions: Apps that stick together; earn revenue together. Cross-promotions allow apps to promote each other's apps to their user base. It involves apps displaying ads for another app and offering in-app incentives or bonuses for downloading or using another app. It can be used to monetize your App through direct commissions or indirectly by expanding the user base.  

Example: Spotify Premium users could listen to music from their playlist in their Uber driver's car 

Monetizing an App is the eventual goal, and there are plenty of ways of doing so. The initial goal is to create an App that users find valuable enough to invest their time in, and then the money follows.  

For your App to pay off in the long run, you have to provide value for money through your App by ensuring your App offers a good user experience, security, privacy, high performance, enhanced functionality, and unique features and benefits. Only then the effort will translate into revenue. 

If you've got an App idea, discuss it with our team to turn it into a reality. 

You can also view our Extensive Portfolio of Mobile Apps and explore more about Our Mobile Development Capabilities!