App Monetization Strategies: A Tool to Check Dwindling App Revenues


Has it ever happened that users flock your app, but money does not flow in?


Do you know, the reason behind?

Lack of proper knowledge about app monetization strategies results in low revenue generating apps.

Quite Sadly, (some) appreneurs conveniently assume More downloads = more revenues. And that’s where their stories turn tragic.   Remember, unless it is a paid app, number of downloads does not necessarily guarantee $$$.  

 When you have a paid app, there are higher chances of revenue generation


Because, paid apps bring a direct inflow of money.

Paid App follows a simple model. People BUY your app from app store. You get 85% revenue, while stores like iOS and Google Play Store keep 15%.

But, this model is not beneficial for every niche. Usually, a user has ‘high’ expectations from ‘Paid’ apps. When she/he Buys your app, they want high-value, reliable and secure content/features.  Low quality = bad reviews and high churn rates. Result – Low or No revenues at all.   Therefore, it is important you offer high-end solutions with a paid-for app. Moreover, various demographic factors also have a role to play in the success of a paid- for mobile application.

Generally, gaming apps follow a paid-for model, since it is more beneficial to them. Look at the iOS app Store figures: Games like Minecraft, Heads Up!, Bloons TD 5 are among the top paid apps.

Unlike a Paid-for app, there is no direct revenue generation for the free app. However, a Zero-dollar tag does not necessarily mean that your app will not earn any money. You can make money through various monetization methods.

Here are three major methods which are widely used by some of the successful apps.

#1. Subscription

 A simple model where the user downloads your app without any initial fee/charge.  They can access only some of the content/features for free. If they wish to unlock more content/feature in your app, they need to pay a small subscription fee.

This model works well for apps where content is regularly updated.  For Example A News App or a Live Video Streaming App.

Remember, not all niches can turn profitable using this method. It is an ideal option for apps like lifestyle, news or entertainment because they regularly add and update their content.

One good thing about subscriptions is: they are auto-renewable. So, a constant flow of weekly/monthly or annual revenues is a sure-shot thing.

However, before you adopt this method, you need a thorough deliberation to decide where you set up a paywall. Setting up a paywall for trivial content yields nothing.

  1. In-App Purchase

In-app purchases model allow users to unlock new features by paying a small amount, from within the app.  Let’s say, for example, a user can buy more lives in game apps or unlock a new level by making in-app purchase.

Besides, being an excellent source of revenue for game apps, in-app purchase is equally profitable for niches like retail or dating apps.

  1. Advertisement

This model works on a very simple idea.

You display a third-party advertisement in your app. You make money via these ad networks.

For example, You can go for paid per impression, where you get paid every time a user sees an ad.

There are different type of ads which you can opt for, based on your app niche. You have full-screen interstitial ads appearing at regular intervals. Users can close or click on the ad to get redirected.

Also, the concept of native ads is getting popular among the appreneurs. Its design is such that it fit seamlessly with your app. Less intrusive and therefore less annoying for the users.  This model can be very effective, provided you target it properly and use it moderately.

So, now you know how an app make money?

But, still, have questions about how to decide which model to adopt?

Simple – To you decide whether to make a paid app or a free app first learn about the fundamental difference between iPhone and Android users’ psyche.

iOS users are more open to paying, if they can get an interesting feature/content in the app. But, it is not the case with Android users.

Android is very common in developing countries like India. There, most users prefer free apps.

Maybe that is one of the reasons why iOS app store has more Paid apps, as compared to Google Play Store.

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Global app revenue is $85 billion and it is expected to surge up to $185 billion by 2020. This means there is ample opportunity to earn money.  You need to prioritize your app monetization strategies to gain an optimum advantage of the growing app economy.

Have more questions about App Monetization? Contact us.