Monetisation strategies for your mobile app
If you have come up with a great idea for a mobile app, you are likely hoping to make some money from it. This process requires expert strategy in order to be successful. It is crucial to establish this strategy and to back yourself with the right people supporting you from the start. There are a wide variety of app monetisation strategies you can use to generate income from your app. Here are five of our favourites to get you started with monetising your app:
1. Clipping the ticket
A very common strategy employed by app giants like Uber and AirBnB, is simply charging a fee or a percentage of transactions. It’s clever and not really a conscious thing that consumers notice, so it works very effectively. It’s like the ‘booking fee’ you get when booking a concert ticket or a hotel. Or the ~30% that UberEats restaurants pay back to Uber for taking an order through their service (the percentage varies from city to city). As marketplace apps are very popular, so is this method of monetisation.
2. Paid apps
This is one of the most basic ways to monetise your app. To do this, you simply charge users a small fee, typically just a few dollars, to download your app. However, in order to be successful with this method, you’ll need to have generated some level of trust with your customers so that they are comfortable spending money on an unknown app. You may also have to compete with free apps offering similar services.
3. In-app purchases
You can also achieve app monetisation through in-app purchases, also known as ‘Freemium’ content. With this model, users can download your app and use its basic services for free. However, more advanced services or add-ons require payment. This way, your customers feel that they have already achieved some value from your app before having to pay anything. They already enjoy using your app, making them more likely to pay for additional functionality.
Depending on the type of app you have created, the subscription model may be the best app monetisation strategy for you. If your app is something that you expect your customers to use frequently and on an ongoing basis, charging them a small monthly fee can be a great way to make money from your app. These ongoing payments give your app the potential to generate a lot of income. The subscription model works well for apps in areas like fitness and nutrition, productivity and other business services, and entertainment, to name just a few. This model works because customers are willing to pay for the ongoing benefits that they get from using the app.
5. Partnerships and advertising
If you don’t like the idea of charging your customers to use your app, you can also monetise with ads. Those who wish to display advertising within your app or sponsor specific aspects of the app will pay you for that privilege. The more users your app has, the more advertisers will be willing to pay. It is up to you how many companies you choose to partner with and how much advertising you want to include in your app. Keep in mind, though, that your customers want to use your app with ease, not be bombarded by ads. You may wish to consider offering an ad-free version that your customers can choose to pay for.
6. White labelling and licensing
If your coding and technology is unique and could be valuable to other companies and app developers, you may wish to consider licensing your source code. When you create the app and allow other organisations to use it, it is known as white labelling. In some cases, a larger organisation may even wish to purchase your entire app outright. Depending on the value that the company places on your app, this could generate a windfall payout for you, allowing you to work on your next mobile app.
Dapper Apps can help
This list is by no means exhaustive, but it provides a general overview of some of the most popular app monetisation methods. There are many more ways to generate revenue from an app. Whether you plan to employ just one of these strategies or hope to use some combination of them all, Dapper Apps can help you achieve your goals.
We can advise you on how to make money from your app and guide you throughout the entire process. Our team of experts will be with you every step of the way to answer all of your questions and ensure that you are on the right track. We have experience working with a variety of different app styles and monetisation strategies, so we understand what it takes to be successful in this business.
Don’t just take our word for it; get in touch with us today to learn more about what we do and how we can help you take your app to the next level.