6 App Monetization Models – Create and Sell Digital Products

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App Monetization Models – Do You Know How to Get Paid for Your Dedication and Creativity? As you may have noticed, most apps are available for free. Is it profitable? App creators have to spend their time and money to create great apps and then give away their software for free – isn’t that a clear loss? To clear up any doubts, we have prepared a combination of 6 app monetization models.

App Monetization – Table of Contents:
What is app monetization?
6 App Monetization Models
What is app monetization?
The simplest way to explain it, app monetization is the method used by app creators (and other interested parties) to make money from an app. According to data available on Statista.com, mobile apps are expected to generate revenue of $935 billion by the year 2023. As we can see, this is a market with potential.

But in order to enjoy any real income, it is necessary to develop a australia whatsapp number database for how to make money from a product. First of all, users need to download the application – we have to decide whether they should pay for it. You should analyze the pros and cons of both solutions.

More apps on the market could be downloaded for free. For this reason, users are accustomed to free offers. Furthermore, the need to pay for the cost right at the beginning of their adventure with the product may discourage them from downloading. On the other hand, people who decide to pay for the app are sure that they need it and are more engaged, so we can expect to have active users.

Just because you’re free to download doesn’t mean you’re missing out. There are other ways to monetize your app, read the text below to learn more.

6 App Monetization Models
6 App Monetization Models
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This monetization model has already been discussed in detail in a separate article . In short, this model means that the creator offers the user access to the application for a fixed and cyclical fee (subscription). The strategy fits products that offer access to content that is regularly replenished, such as music or e-books.

It is a good solution for the business to generate regular revenue. It allows the establishment of customer segmentation, which provides a better adjustment of the offer to the selected users.

What is problematic is the need to persuade customers to purchase a subscription. What helps is the free trial, during which users will have the opportunity to discover the features and overall value of the application. It is worth using the free trial time to build trust and loyalty, which should encourage customers to stick with the solution rather than looking for alternatives among the competition.

Freemium
The other way to monetize an app is the freemium model . It is based on the fact that the basic version of the product is shared for free, while access to advanced features or benefits requires an additional payment. App creators need to develop a good division between the free and paid versions of their product. If the basic version of the product is fully functional and rich in free solutions, the customer may not want to switch and move to a paid version.

From a business perspective, the freemium method is a very good marketing solution, as free apps are eagerly downloaded by customers. On the other hand, customers do not stick with this solution, so they may be inclined to abandon the app rather than purchase the paid version. This often reflects on the company's earnings, which may experience fluctuations in revenue.

Advertising
In the case of free apps, revenue is generated through advertising. The app owner can pay the advertiser based on the number of clicks on the ad or on the number of views. There are different formats for creative advertising, such as full-screen pop-ups, video ads, banners, etc. In addition, these apps often collect data about users. The data is then used to adjust the content to the customer's behavior or interests. Popular examples include Facebook and Instagram.

In this model, revenue is generated by offering products that can be purchased within the app. These include both physical and virtual goods. Many mobile games are based on this monetization model, thanks to which users can purchase additional lives or upgrades. This impacts their engagement, loyalty and reduces the risk of abandonment of the app.