App Monetization – You Choose To Win Or Lose

Posted: Jun 13 2016, 7:40am CDT | by , Updated: Jun 13 2016, 8:48am CDT, in News | Latest Business News


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App Monetization – You Choose to Win or Lose
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There is no one way to properly monetize a mobile app. However, if you choose the wrong path you are bound to lose – avoid these mistakes.

Usually there are two ways of doing things – the right way and the wrong way.

When it comes to the world of app monetization, that conventional wisdom goes right out the window. As far as mobile app monetization goes, there are a few ways of doing it right and many, many ways of doing it wrong. It's up to developers to figure out which method will lead to success while avoiding mistakes that will deem their app to obscurity.

Apps Monetization

The key to monetizing success is remembering that there is no one-size-fits-all answer to monetization. It is therefore vital to really consider what your app does, your target users, and your marketing strategy in order to come up with the right way to monetize your app. Not doing so is perhaps the most common mistake, and one of the biggest mistakes to avoid.

By far, the easiest way to monetize is to simply charge for your app. This is often a good strategy for developers and publishers whose apps are targeting towards B2B users or other, specific customers. You will be able to market to them directly through various channels like trade magazines and websites and see a return on your marketing investment.

Although charging for an app is a great way to earn money on the front end, as you basically 'sell' your app, it is a dangerous path for developers who have much more general target markets. 9 out of 10 apps on Google Play or the App Store are offered for free; and of charged apps, only 10% of them are priced at more than $0.99 – a price point which is hard to recoup until your sales go into the millions. With so many free apps out there, it can be incredibly difficult to convince people to pay to for an app up front.


One way in which you could essentially charge for an app, but still drive downloads by offering the app for free, is to pursue a freemium model. With a freemium app, you offer basic app functionality for free, and then encourage users to purchase additional features and functions. These can range from micro-transaction game power-ups to cloud storage subscriptions, for example.

There are many pitfalls of the freemium model, though. The biggest one is finding a balance between what content should be free, and which paid. If you offer too much free content at the beginning, it is almost impossible to then adjust the model later and make users pay for things which were once free. On the other hand, offering very little free content initially can turn off users and prevent further purchases.

It is however possible to effectively monetize an app without every making your users pay for it. Instead, through the use of in-app mobile app advertising, you can have advertisers and other app developers pay you to advertise their apps within your app.

While there is a danger of turning off users by interrupting the app experience with an ad, most mobile advertising companies are able to seamlessly integrate ads into the app without detracting from the experience one bit. Although revenue depends on how many users you have, by offering the app for free you can much more easily build a user base which will allow you to win the monetization game and consistently bring in app income.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]




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