The ways to monetize apps
Do you want to make money from your app? What’s the most practical way of making money from a mobile application development project? What are the best of the ways to monetize apps? These are the questions for which every mobile app developer or a business that has hired a mobile app developer, has to find suitable answers before implementing an app. Let’s ask from Rapidsoft’s mobile app development experts about the best of the ways to monetize apps. Here we go- “There are three ways — in-app advertisement, in-app purchase and paid – to generate revenue from an app. They all have advantages and disadvantages; however, not all mobile app developers are able to discover advantages / disadvantages of these monetization methods associated with a particular type of app” said Kalpana Verma, Head of Sales & Client Relations, Rapidsoft Technologies.
She explained In-App Advertisement is not the best of the ways to monetize apps.
Putting advertisement in an app is rewarding only if you can control it. Relevancy of ads showing in an app being used by users anywhere in the world matters. If ads don’t either correlate to users or to the app itself, they are totally worthless. These ads hardly make any money. Individual mobile developers often go with advertisement as the monetization method but a professional company will not recommend its clients to put ads in any app because of following reasons:
- Mobile devices have limited screen-room. It’s always difficult to set all the app-functionalities for 4-6 inches screen. Putting ads anywhere in an app further consumes space and leaves little room for an app itself.
- You can never have total control on ads showing up in your app. At some point ads do impact design of the app.
- An app showing irrelevant or scam ads annoys users and loses its credibility. Users often do not take an app seriously that has all its focus on showing ads that do not belong to the app itself or users.
Many times, irrelevant ads may appear like the part of your app. They can choose the theme-color of your app and look app’s own part. The good way of putting advertisements is that you add a custom banner that leads users to the paid version of the same app. “In-app purchase is a good way of monetizing. The app is free but some of its features/functions work only when users make a payment. This doesn’t bother users because they can use the app for free and if they want to use special parts of the app, they can active them by paying a little amount. An app with in-app purchase monetization method can bring a lot of money to the developer. Candy Crush is one of the good examples of in-app purchase method of monetization” said Supriya Chikara, Managing Director, Rapidsoft Technologies.
He explained three of the ways to monetize apps through in-app purchase
For an example, lives or special powers in a game can be purchased and consumed by users again and over again. This in-app purchase method has great potential to give high returns to users. Dedicated users running out of coins or lives or special powers certainly make in-app purchase for refill.
Many apps are based on durable in-app purchase method. In this method, users pay an amount to purchase something that they can always own. It can be a power or level that they will always own after making single time payment.
This method of in-app purchase is popular among magazines or video tutorial apps for yoga or exercise, online streaming-music app, etc. An app based on subscription in-app purchase provides access to the content for a particular period of time like monthly, quarterly, etc. and when the tenure ends, users require repaying for extending the subscription for another fixed period of time. “The best and problem-free method of monetization is that you make a paid app. A single time payment allows users to own the full app all through its lifecycle. Most apps are sold within the range of $2.00; however if an app has specific niche features, the mobile developer can charge a higher prices too” said Shantanu Deshmukh, Chief Operating Office, Rapidsoft Technologies.
He explained paid method as one of the ways to monetize apps.
Charging an app is decision of a lot of market research. The app you are going to offer for an amount, is supposed to be worth paying. Apps for specific purpose can be charged from 99 cents to $2.99. If there are other competitor apps, keeping price low is a wise decision. The paid apps should also return the true value of money spent by users. Also, if you are planning an app that will charge some money, users are more interested in paying the charge for single time in comparison paying it again and again as happens in in-app purchase based apps.