Monetization Models for Mobile apps

Mobile apps are built primarily and most importantly to generate revenues for the company. Although there are different kinds of mobile apps made with different goalsets, there are still some common guidelines that they share, collectively known as monetization models. These models are a set of tips and tricks for a mobile apps to extract the maximum amount of money from their users. Monetization models are different for different kinds of mobile apps, and tend to focus majorly on money from these kind of apps. If you have an app idea who can generate more money for you, we are the only mobile app development company who can help you to make your idea into revenue machine.

What is meant by monetization models for a mobile app?

Developers of mobile apps want to get rewarded as soon as they can mainly in terms of interaction of users and revenue generation. A monetization model helps developers and companies to earn money through Mobile Apps in very different ways, other than just in-app purchases or advertising. One such example is the model used by Amazon, called the affiliate income monetization technique. In this model, where the company promotes and sells someone else’s products or services. In exchange for that, Amazon asks for a part of their revenue generation. It has been observed to be one of the most successful approaches in order to extract money from their users. Also, it is not necessary to think about these models as a one time decision for you company. A particular company can choose to withdraw any number of monetization models from its mobile app at any point of time. There also can be more than one models that are adopted by a particular mobile app at a certain time.

What are the monetization model for a mobile app?

Although there are different kinds of apps made with different goalsets, there are four broad categories of models for monetization for a mobile app. These are mentioned below:

Freemium for apps and games

Freemium apps are available for free to the users to download, and charged for subsequent premium content in the mobile app. This is one of the most used monetization models for mobile apps that have just started to enter theit respective field. Freemium apps are essential to increase downloads of your app.

One time paid mobile apps

One time paid apps include apps that makes users pay an initial amount of money for the starting download. Although this monetization model is generally preferred for apps that have invested a lot in their graphic design(or how the app looks) and their interfaces. For a user to download these kind of mobile apps and pay the initial amount, they need to be extremely attractive and easy to use. One advantage of the model lies in the fact that it does not lose its customers. Once a customer, always a customer.

Paid Mobile apps with added paid features

This kind of monetization model suggests mobile apps to pay certain amounts of money in parts. The first investment from the user comes at the point of download, and later for subsequent upgrades and other downloads of the content. An app developer must keep in mind that this monetization model needs to have new upgrades very frequently in order for its users to stick to the app. If that does not happen, the users tend to simply delete the mobile app after one use. Hence, the biggest drawback of this monetization model lies in the fact that it does not make permanent customers. A customer can, at any point of time decide to forget about the app, or not continue to pay for other contents/upgrades. Other advantages that the model possesses are that they tend to keep the customer involved by regular updates and addition of content. A user will pay for subsequent content downloads if he likes the app and will continue to upgrade the app every now and then, leading to generation of bucket loads of revenue for the company.

Free Mobile apps with advertising

This monetization model is better than the rest of the three, as it does not involve an initial insvestment from the user. The revenue or money is generated from these kind of mobile apps by the user interacting with advertisements displayed while the app is being used. There are several kinds of advertisements that can pop up on a user’s mobile screen while scrolling through the app. These kinds of advertisements increase possibilities of monetization, and are interstitial adds, native adds, offer walls, surveys and much more. There can also be many ways these mobile apps earn money. The three most common ways are per click Per user.

What is the need for monetization models for a mobile app?

A mobile app is generally put in a lot of effort into, to get rewarded as soon as possible. Basically, getting monetary rewards is the primary reason for a mobile app’s existence, or any app for that matter. This is where a monetization model comes into play. A monetization model helps to create strategies and guidelines in order for an app to function its best. There are many different kinds of apps, with different secondary goalsets, primarily being revenue generation or extraction of money which is common to almost all of them. Therefore, there are different guidelines available for each kind of mobile app.

Which Monetization model should be used for a mobile app?

It is difficult to say that a particular models works better than others because it absolutely depends on how a particular mobile app is designed. If a particular app is designed solely to extract a bucket loads of money from the user, it should follow ‘Paid app with other paid features’ model and keep the user indulged. In other cases, if the app wants to increase its brand name, provide entertainment to the user along with making money, it should most probably choose the Freemium app model. Similarly, different mobile apps need different prerequisites and guidelines to extract users money. Overall, A developer is required to pay attention to the kind of mobile application that is generated along with what it is required to achieve. A mobile app basically generates revenue by in app purchases and freemium models. Other monetization models, include subscriptions, sponsorships, affiliate income model for monetization and advertisements. Subscriptions means that users are required to pay for a particular content subscription, whereas sponsorships monetization model include getting sponsors for your mobile app just like it is done for any website. Affiliate income monetization model involves getting a part of another company’s revenues generated in return of a favor that is done by your company. Therefore a company needs to take care of all these factors even after giving in adequate effort to develop a mobile app. So, choosing A particular monetization model for a mobile app is one of the most important steps in revenue generation and should be done wisely.