Ways To Monetize Your App

Ways To Monetize Your App

Apps are all the rage these days and if you are looking at developing an app, undoubtedly you have thought about how you can monetize it. There are 3 main ways that you can use an app to generate revenue.

Single Purchase: In this model, you would sell the app to the end user for a set fee. This would be a single transaction and once they have paid for the app, they own it and there are no further transactions.

Benefits: With this model, it is quick and easy. Users just have to make a decision if they want to spend a specific amount of money right now and that is it.

Cons: The downfall is that this requires mass appeal or a high value to generate significant revenue.

Freemium: With a freemium app, you give the app away for free in hopes of being able to up-sell the users with add-ons and upgrades once they begin using it.

Benefits: Getting adoption of your app is easier because it is free for people to download and kick the tires.

Cons: You are reliant on getting users to buy upgrades. It is a fine line between giving the user enough features in the free version to make it enticing but not giving enough so they have to buy upgrades.

Subscription: Often times looked at as the holy grail of monetization is a subscription model. This is where often times the app is free but requires a monthly or annual subscription that is paid for the app to be useful.

Benefits: Most businesses love this model because it generates recurring revenue and, while can be small at first, over time it compounds to build a nice revenue stream.

Cons: This is often the hardest to sell as it requires a user to make a monthly commitment to pay a certain amount.

Hopefully this is helpful to show various ways you can monetize your app. If you have an idea that you would like to discuss, give us a shout at 810-695-0001.