All types of code monetization solutions have their pros and cons. And not all monetization methods are appropriate for all apps. How do you know which one to choose?
In this article, we’ll examine some of the major monetization solutions, their uses, their benefits, and other factors to take into consideration.
Your Monetization Solutions
To find out which code will help you make the most money, start at the other end and ask yourself:
Which is more important – money or passion?
In other words, are you specifically interested in monetizing a certain type of app, such as games? If, however, money is more important, then make choices based on where you think you can make the most money.
There are many monetization solutions out there, and many of them rely on creating a quality app that people actually want to use.
Research the monetization solutions at your disposal:
- Pay-per-install – Pay-per-install advertising presents ads during the installation of an app. These programs allow you to earn money from downloads even if people never use your app.
- In-app advertising – In-app ads, such as pay-per-click ads, earn more money the more people use your app. If you’ve got an app that solves an essential problem and gets used every day, then you’re in luck! The key to successful in-app advertising is using ads that add value and don’t compromise the user experience.
- Search monetization – When you sign up for a search monetization program, you insert some code into your app that creates a search box. Every time people search from inside your app, you make money.
- Freemium or in-app purchases – This choice has been popular in the past and continues to be popular today. Apps that use this strategy don’t charge for the app itself, but may charge for in-app purchases such as upgrades or extra features. This monetization solution can be effective, but requires some skill to pull off.
- Paid apps – Charging for an app is a challenge, and people actually prefer ad-based apps to paid or freemium apps. In order to successfully charge for an app, you’ll need an app that creates substantial, unique value for your customers. Also, you’ll probably want a reputation or a solid marketing budget – otherwise no one will know about your app. And consider that some markets are more suited to paid apps, such as iOS.
- Monetizing data – User data and user behavior is another way to monetize code. Facebook and Google, for instance, both earn advertising dollars by commoditizing and selling people’s marketing data.
- Offering a subscription service – Subscriptions are a great way to earn recurring income. If your app acts as a gateway or a mobile version of your company’s service, then a subscription payment model can be one of the most effective strategies.
- Selling services or products – In some cases, an app is simply like content marketing: it is used as a gateway to sell a vendor’s services or products. If you have your own products or services, then developing a useful app that also promotes your business can be an excellent way to earn money. If you don’t, then there is another way…
- Affiliate marketing – Affiliate marketing can be very lucrative if you incorporate an affiliate relationship into the core design of the app. By establishing an affiliate relationship with a merchant, which can simply mean signing up for an online account, you can earn money each time a sale is made through your app. Look at travel apps and booking apps to see some examples.
How to Choose the Right Solution
The above monetization methods vary in their effectiveness, their potential revenue, and which types of apps they can best serve.
To simplify the market slightly, there are two types of apps: B2C apps and B2B apps. The nature of each type of app reflects the most effective type of monetization.
B2C apps often make more money from in-app ads, in-app purchases, affiliate marketing, search monetization, and pay-per-install ads. The reason these models work well is because consumers are picky and have short attention spans. People will quickly download apps that are free, and, as mentioned, they prefer ad-based apps.
B2B apps can earn more money from subscriptions, paid purchases, and in-app purchases. Though B2B markets tend to be smaller, they can be more successful at charging customers than B2C apps. There are a number of reasons for this, but it boils down to the fact that the target industries are smaller and more specialized, and businesses are more willing to pay for something that helps them to be more productive.
Keep in mind that this breakdown is rather general, but it should point you in the right direction. Much more industry-specific research and experimentation is required to find an effective monetization strategy.