Making money with your mobile app is possible. But only if you know the right techniques for mobile app monetization. Read on to learn the best mobile app monetization methods
Studies and data suggest that the average cost of a feature-rich mobile application can be $70,000 to $100,000. For groundbreaking apps, the cost can be even higher.
And it takes an average of 6 months to get a mobile app live on the App Stores.
Now, if you are spending so much time and money on getting a mobile app developed for your business, you are definitely expecting returns, right?
These returns can be in the form of high customer loyalty, more user engagement, or increased brand awareness. But what about money?
To keep your business running and to make sure that your investment in the mobile app is worth it, you also need to monetize your mobile app.
The simplest way to do that is to sell physical or digital products or services via your mobile app.
But that’s not the only way to monetize your mobile app. In this blog, we will be exploring 8 other methods of making money from your mobile app.
8 ways of mobile app monetization
Remember: All these methods of mobile app monetization may not be suitable for all businesses. And selecting the right monetization method is the key to making more money from your mobile app.
If you are not sure, which way will be suitable for you, consider getting in touch with experts to find out.
Schedule a free consultation with our mobile app development experts today!
1. Freemium model (Free and paid versions)
The freemium model is one of the well-known ways of making money with a mobile app. The concept is simple. You launch an app that can be downloaded for free. But some features can only be accessed upon the payment of a premium.
These features could be free delivery for a food ordering app or extra bonuses or levels for a gaming app.
One of the popular examples of an app operating on the freemium model is Tinder. The popular dating app was launched as a free app in 2013, but in 2015, the premium model was adopted wherein users could pay and get special features like Super Like, unlimited swipes, and location change.
2. In-app purchases (Feature upgrade)
A popular type of mobile app monetization method, in-app purchases, is often used in gaming apps.
Remember how you could unlock extra moves in the uber-popular game Candy Crush Saga for $0.99?
That’s the in-app purchase model.
The basic app and all its features are free. But with purchases made within the app, users can extra moves, more lives, customization capabilities, skins, etc.
A pile of gems for $4.99 in Clash of Clans is also an example of the in-app purchase model being used to make money.
3. Gated content (subscription model)
If your app is primarily driven by content, having gated content is a great way to get users to pay for the app.
In the gated content or subscription model, some content is available for reading (and downloading) for free. However, to access the entire content, users have to pay a monthly subscription fee.
For example, Umano is an app that helps you stay updated with the latest news by converting them into audio stories that you can listen to.
The app is free for download and use, but only till a certain time. Later on, you need to upgrade to Umano premium to continue listening to news stories.
With this gated content model, you can begin by engaging users with your app, and then when they are ready, you can get them to pay.
4. Paid app (Pay before you download)
Paid apps, where you pay before downloading an app from the App Store, are one of the most straightforward ways of making money with your mobile app.
With these apps, users have to make a payment right before they download the app. For example, the Office Suite Pro + PDF app or the popular online game Minecraft.
An important point to note with pay before you download apps is that users need to know what value your app will offer. Only then will they be willing to pay for the app even before downloading it.
5. Partnership model (App sponsorship)
A lot of businesses feel that instead of running ads inside apps or launching their own app, sponsoring an app is better for their mobile marketing strategy.
For example, Subway sponsored the PrePlay football game app and engaged fans during Super Bowl XLVI.
So if you develop an app, you can look for corporate sponsors who can partner with you. This not just helps you make money with the app, but also get support from big brands.
6. Advertising (Ads in the app)
Running third-party ads within your app is one of the most widely used methods of monetizing a mobile app.
You can run ads that display as a banner within the app, show up as pop-ups, video apps, or even ads that let users get rewards or upgrades.
And in turn, you can get paid per ad view or per click or any other conversion metric.
Spotify running audio ads to give users 30 minutes of uninterrupted audio streaming is an example of ads in the app for making money.
7. Data mining (Selling user data)
When you develop an app for your business, you have the opportunity to collect a lot of user data from these apps. This data could be users’ email ids, phone numbers, or their behavior and preferences.
You can either utilize this data internally to make data-backed business decisions and boost revenue. Or you can sell this to other organizations and get paid for that.
However, remember that if you are using user data to make money from your mobile app, you need to maintain data privacy and also have proper permissions to use and sell the data.
8. Code white-labeling (Letting others use your app code)
Often it happens that you get a mobile app developed that can be used by others too (of course, with some modifications).
Selling the code of your mobile app and letting others customize it or add skins over is also a great way to make money.
But this method should not be used if you feel that competitors might misuse it.
Get a money-making app developed with SynergyTop
While there are several ways for mobile app monetization (as we have already seen), to be able to actually make money with your mobile app, you need
- A seamless user experience
- Quick load speed
- Valuable features and content
At SynergyTop, we have designed, developed, and deployed 50+ apps so far, for businesses from across the globe and in various niches.
We have the required skill, technology, and experience for developing apps that will help you make money for your business.
Want to get started and make money with your app soon? Contact our team of mobile app developers today!
