If you are here, you are either a tech freelancer looking for how to make money from your mobile app or a client’s app, or you own a mobile app development business.
You could also be a mobile app developer looking to monetize your tech skills. In any case, you have a mobile app and you want to know how to make money from your mobile app.
Mobile app monetization is a great way to make a steady stream of income in 2024. Users just need to install and use the app – and that’s it, you are set to start making money!
Depending on the mobile app monetization model you implement, your mobile app can be set to make money per download or in-app purchases. You can even implement a freemium or subscription model.
However, there are several mobile app monetization strategies you need to put in place before your mobile app is ready to make money. Similar to blog monetization and website monetization, you need to grow traffic to your mobile app and implement eCommerce marketing strategies to get things rolling.
In this blog, we will look at the various mobile app monetization strategies available and how you can make money from your mobile app.
How to Make Money From a Mobile App: Getting Started
It’s one thing to implement the mobile app monetization models, it’s another thing to start making money from these models. Put simpler – all the mobile app monetization models can only work when you have an audience to use your apps.
Let’s say you created a SaaS product or a fitness tracking app. Now, you implemented a subscription model that allows you to make money repeatedly whenever your users subscribe.
Before subscribing, your target user needs to know about your app – this means you need to consider mobile app marketing strategies. You need to be able to communicate to your ideal audience just how useful your app is and why they need to use your fitness app.
Next, the moment your ideal customer decides to search for your app on their app store, your app must appear in search results. This is where SEO and ASO (app store optimization) strategies come in.
Now, don’t let us get started on customer relationship management and technical support. All of these are important and come together to ensure that your mobile app keeps making money.
You cannot just develop an app and leave it on the app store, hoping some kind of miracle will happen. Your mobile app tech business idea needs to be promoted like a typical eCommerce business will promote its eCommerce offerings.
This means you must implement marketing strategies, eCommerce sales strategies, customer relationship management strategies, and continuously optimize your mobile app. Once you see your mobile app as a product, it becomes easier to know how to sell it.
Before we continue why you are here, there is a need for you to understand what mobile app optimization is. Let’s find out!
What is Mobile App Monetization?
Mobile app monetization is when you incorporate revenue-generating models on your mobile app to make money from it. This is a crucial aspect of the app development process, as it allows mobile app developers and business owners to generate income from their mobile applications.
As mentioned earlier, mobile app developers and businesses implement various mobile app monetization strategies to make money from their mobile apps.
The goal is to turn the user base and engagement with the app into a sustainable source of income.
To successfully implement a mobile app monetization strategy you must consider several key factors. For one, it is important to strike a balance between revenue generation and a positive user experience.
No one likes to see 50 in-app ads within 5 minutes of opening their mobile app. That is a surefire way to lose a subscriber, no matter how great your app is.
There are several mobile app monetization models you can implement on your mobile app. Now, no rule says you cannot implement multiple mobile app monetization models. This process is called a hybrid monetization strategy.
4 Mobile App Monetization Strategies
Mobile app monetization involves implementing various models to generate revenue from mobile apps. Let’s look at 4 mobile app monetization strategies!
1. In-App Advertising
In-app advertising is a popular way to monetize mobile apps. Ads are placed inside your app. The exact position of these ads depends on the ad format you choose.
To get started, you need to choose the ad format that fits your mobile app design and UI/UX interface. The ad format must also be based on your target audience and the type of content you create.
For instance, Audiomack implements a video ads format that plays between streams. Choose a format that your audience can relate to, and this will help you get impressions and clicks.
Another important thing with in-app advertising is that the ads must be relevant to your audience’s interests. This is the only way to enhance engagement and make money.
Next, make sure you place the ads in such a way that it will not disrupt the user experience of your mobile app. Try to balance ad visibility and providing value to users.
Yes, you want to make money but don’t forget your users downloaded your ad for a reason. Avoid overwhelming them with excessive ads. You can test different ad placements within your app to find the most effective positions.
When implementing in-app advertising to monetize mobile apps, it is important to use ad mediation platforms that can manage and integrate with multiple ad networks. App mediation platforms enable mobile app developers to optimize ad networks within their mobile apps.
With this in place, it is easier to maximize your fill rates and revenue. Remember to monitor user feedback and track your key metrics – click-through rates (CTR), fill rates, and revenue per year.
Here are some of the popular in-app advertising formats you can use:
- Banner Ads: Displayed at the top or bottom of the app interface.
- Interstitial Ads: Full-screen ads that appear between content transitions.
- Native Ads: Seamlessly integrated into the app’s design for a more natural look and feel.
- Video Ads: Short video clips that users can watch for rewards.
2. Freemium Model
The freemium model is another mobile app monetization strategy. Implementing a freemium model for your mobile app involves offering a basic version for free while providing premium features or content that users can unlock through in-app purchases.
Before you implement this model, it is important that your mobile app has a unique selling point and provides value that users need. Since you’ll be offering some features for free, you need to be able to identify the features that are worth paying for.
Understanding your audience is also very important when implementing the freemium model of mobile app monetization. Which features will your users pay for? Which ones will appeal most to them? Which ones will drive conversions?
Once you can answer these questions, it becomes easier to develop a free version of your app and a premium version of your app. Make sure the free version offers essential functionality and provides a valuable user experience to encourage downloads.
If your users have positive feedback with the free version, they’ll be more inclined to transition to the premium version. Just ensure that you offer a seamless upgrade process.
Another important consideration is your pricing strategy. You can offer one-time purchases, subscription models, or a combination of both.
Additionally, you can integrate in-app purchases – another mobile app monetization strategy. This will allow users to buy premium features while using the app. However, make sure you set up a secure payment process.
The freemium model requires ongoing optimizations. So, make sure you monitor consumer trends and be ready to upgrade your pricing and premium features when needed.
Here are ways to make money from the freemium model:
- Basic App for Free: Users can download and use the app at no cost.
- Premium Features: Additional functionalities or content are available for purchase.
- In-App Purchases: Users can buy virtual goods or currency within the app.
3. In-App Purchases (IAP)
In-app purchases are another way to monetize your mobile apps. With in-app purchases, your mobile app users can buy digital products or services within your mobile app.
These purchases can include a wide range of items, such as virtual goods, premium features, additional content, or subscription-based access. In essence, in-app purchases enable users to make transactions without leaving the app, enhancing the overall user experience.
In-app purchases are very popular in mobile game apps and are easy to set up. However, you must familiarize yourself with the guidelines and policies of the app stores you’re publishing your app.
The truth is that each of these platforms – Apple App Store and Google Play Store – have specific rules regarding in-app purchases. These rules also cover how transactions should be handled.
To get started with in-app purchases (IAP), select the IAP model that aligns with your mobile app. Then, set up your developer accounts on the relevant app stores.
Within the app store console, you can add the products you want to sell. Make sure you specify the details of the products – product names, descriptions, prices, and types (consumables, non-consumables, or subscriptions).
Next, it’s time to integrate the code for IAP within your mobile app. Make sure you use the API provided by the app store to initiate purchases, check purchase status, and handle transactions.
Once you’ve integrated the API, you must test the in-app purchase before launching the mobile app. Most app stores provide sandbox environments for developers to simulate transactions without actual payments.
Let’s emphasize this – you must communicate the value of your in-app purchases to your mobile app users. If your users can’t attach any value to your IAP then you’ll not be able to make money.
You can implement mobile app marketing strategies to market your IAP within your app. Once you highlight the benefits and encourage your users to buy your products, it will become easier to monetize your mobile app.
Here are the IAP models you can choose from:
- Consumables: Items used within the app, like virtual currency or power-ups.
- Non-consumables: Products purchased once and retained permanently, such as additional features or ad removal.
- Subscriptions: Users pay regularly for access to premium content or features.
4. Subscription Model
The subscription model is when you charge users a recurring fee in exchange for ongoing access to premium features within your mobile app. Instead of a one-time purchase, users commit to regular payments at specified intervals, typically monthly or annually.
Additionally, the subscription model offers a predictable and steady stream of revenue for app developers. In turn, users get a continuous and enhanced app experience.
Now, it’s important to strike a balance between the perceived value of the subscription and the pricing to encourage user adoption and retention. Implementing a subscription model for your mobile app involves careful planning and execution.
Similar to how you implement other mobile app monetization strategies, it is important to understand your audience and clearly articulate your unique value proposition. Explain what your users will get from subscribing to your app.
Next, consider the subscription tiers and pricing you want to offer. Make sure each tier provides different sets of features – this way users can choose a plan that suits their preferences and budget.
Don’t forget to create a seamless experience for your users. From mobile payment options to upgrading their subscription plan, make sure users can perform operations smoothly.
Like other mobile app monetization strategies, promote your subscription offering by implementing targeted marketing strategies. Also, be up-to-date with current market trends – this will help keep your mobile app relevant and useful.
Here are the subscription tiers you can offer:
- Tiered Subscriptions: Different levels with varying features and pricing.
- Free Trial Periods: Allowing users to experience premium features before committing.
Let’s Make Money
Monetizing mobile apps is easier said than done. Although the process can seem difficult and very long, the results are worth it. Knowing how to monetize mobile apps will help you earn a steady stream of income, regardless of the monetization model.
How much can you make from mobile apps? A lot of money!
The amount of money you can earn from your mobile app depends on the mobile app monetization strategy you use and your mobile app marketing strategies. Customer satisfaction and retention can also affect how much you earn.
Just make sure your customers get value for their money and you’ll make your own money!
