There are thousands of mobile apps, and the total continues to rise every day. Making money from a mobile app is more difficult than traditional software because many people aren’t willing to pay that much for a mobile-based solution. Alternative strategies to upfront payments are used to make a profit, including in-app ads, sponsorships, in-app purchases, and in-app subscriptions. Continue reading to find out more.
In-App Subscriptions
Offering a free app is the best way to bring in customers from the start, but you still need to have the power to deliver a quality service, otherwise, users will leave just as quickly. A great way to keep people using your service while making money is to make in-app subscriptions, which grant access to premium features. To do this well, you need to make your basic app functional but limit it heavily in terms of the number of times it can be used, etc.
When you’re offering subscriptions, you need to have the capacity to take payments and remain compliant with the law. If this isn’t your area of expertise, you can turn to Envestnet | Yodlee ACH payment solutions, which can take care of everything from ACH deposits to bank verifications. Envestnet | Yodlee ACH payment solutions have been in the industry for over 20 years and bring together financial institutions in their thousands, all of which can be used to offer speedy transactions and low service fees to your users.
In-App Purchases
In-app purchases are similar to offering subscriptions, the only difference is that users are paying for a temporary object that will benefit their experience. There are typically two different types of in-app purchases:
- Consumable. These types of purchases are for temporary features and services. The best examples are for game items that can only be used once.
- Non-consumable. These purchases only need to be bought once. For example, in racing games, you can buy new tracks, and they only have to be paid for once.
When you’re putting your monetization plan together, you need to make sure that every aspect you charge for benefits the user somehow. However, you need to make sure that the app can function without the premium service.
App Ads
Nobody enjoys countless ads and popups when using their mobile, but they’re a necessary evil and cut the cost to the consumer down. When choosing which ads to show on your platform, you need to make sure they’re relevant to your clientele. If your ads have nothing to do with your service, you will notice an extremely low click-through rate.
Sponsorships
Collaborating with developers and businesses is a great way to secure additional funding for your project. Sponsorships are a win-win because two or more businesses get to benefit from them. Partner up with businesses that share your business vision, so that you can better add value to your customer base. Monetizing an app is essential to making money, but you need to find the right way of doing it. Whichever of the above you choose to use, you need to make sure any purchases add value to your users.
