Applications are usually developed for the purpose of either learning or earning. Monetization plays a vital role in order to earn monetary gains from the applications. There are various applications being developed but only a few developers generate a great amount of revenue. They advertise, market, and promote the applications to achieve the results which other developers can only dream of. Developers are lacking with the latest knowledge of advertising and media space to market the applications. There are few applications which are useful and could have been more popular; On the other hand, there are applications which are not so useful but still they are very popular. Developers could enormously earn through the strategies of application monetization. There are various strategies of application monetization and different strategies suits different apps. Appropriate strategy of apps monetization should be used to maximize the benefits.
Let’s discuss some of the most popular app monetization strategies:
1.Paid apps: Paid apps is a classic and popular method of app monetization. The revenue earned through paid apps depend upon the number of downloads. Developers sell the application through the market places or platform provided by Google, Microsoft, and Apple. Different operating system charges differently but usually they charge 30% of the revenue and 70% goes to the developers. Using this strategy, it is less likely to reach great number of users as compared to other strategies. Users expect free trial and avoid paying for the apps without knowing how the application works.
2.Free trial or Demo: Free trial or Demo lets the user know the working and the functionality of the applications. This helps to get the feel of the product and helps users to take the decision. Free trial or Demo increases the sale of the product, if it is worth using. Developers need to provide two versions of the product i.e the trial version and the actual product which have all the features of the product while the trial version contains limited functionality and it can be used for a limited period of time. Free trial or Demo also increases the visibility of the application as most of the users are likely to download the free version of the applications than the paid version.
3.Advertising: Advertising is a great way of generating revenue. It is specifically beneficial for the applications which attract users for a longer period of time. Even if the application is free, it helps generating advertising revenue to the developers and hence benefits both the users and the developers.
4.Freemium /in-App Purchase: Freemium recently has become one of the most popular app monetizing strategy by generating revenue. In this model of app monetizing, the application is freely available but users need to pay for accessing the advanced features and to get bonus rewards. This strategy benefits both users and the developers. Users can download the application for free. The users need to pay only when they are well accustomed with the application and want to use advanced featured. The developers need to create just one version of the product.
5.Let me Toggle the Price: Let me toggle the price is the strategy used by the developers in which they create only one version of the product and often make the product free. This strategy lets some of the users to be familiar with the application and enjoys its full functionality. The users of full version recommend the app through ratings and word of mouth. There are markets monitoring applications which list the apps available with changed prices and hence improves the visibility of the application.
6. Subscription: Subscription is an app monetization strategy through which the developer provides the content and keeps on updating the content regularly. Once the user is interested in the content he needs to subscribe and pay for the updated content. The content can be used to market other products.
Earlier developers were a bit concerned about the performance of their apps but nowadays there are various app monetization strategies that help them advertising, marketing and promoting their applications. Developers need to be familiar of these strategies in order to make the awareness among the users and hence generate great income.