A mobile app can become a good source of passive income. To achieve this, you need an efficient monetization strategy. You can use any of the existing ones – paid download, paid subscription, purchase of virtual goods in a free app, programmatic advertising, etc. Below we take a closer look at the most beneficial options.
Monetization strategies for Android and iOS apps
One of the most widespread strategies is to offer the users a choice between a paid and free version. The latter will have a limited set of functions; in order to enjoy the full range of features, users need to pay. This is a rather lucrative strategy, as the user has a chance to get to know the application before buying the extended version. In-app purchase means that the application itself is free of charge, and the users have access to all the tools and features; however, they will need to pay if they want something extra. A good example is a game where you would have to buy something from the store if you want to move to the next level faster. The further the players move in the game, the more obvious it is that they won’t do without buying additional tools.
Paid subscription means that the app is free of charge, but the content should be paid for. Users usually pay monthly, get their subscription and enjoy the app. This strategy is not feasible for gaming apps but is widely used in service applications.
The paid download is not a very efficient tool, but it should be mentioned. Its main advantage is that the strategy provides you with instantaneous revenue – users pay and download. However, at the moment users are very reluctant to pay for anything online, as they basically don’t know what they will be paying for, especially if we take into account the fact that every app now has a free version.
Programmatic advertising as a monetization tool
Yet, you don’t always have to make your users pay you. You can monetize your Android or iOS app via programmatic advertising services. You need to register on a special platform and your product becomes an advertising spot.
The advantages are:
- Users do not pay for anything;
- You obtain quick revenue from the advertisers;
- You do not need to look for advertisers, the process is automatic;
- Users only see the ads they are likely to be interested in.
The software collects information on the users and, on the basis of this data, shows them the ads for goods and services that might be interesting to them. All you need to do as the app owner is to find a reliable programmatic advertising platform, and register, and set up your personal account.
