So, you’ve developed an amazing new app that even your grandmother uses every day, but you’re still not making any out money out of it.
Your grandmother has told her friends about the app – and they’ve told their friends – but you’re still not making a penny from it. You’ve done everything right, or so it seems, but it still doesn’t look like you’re going to be a millionaire this year. In fact, you’re not even sure you’ll be able to pay next month’s bills without a bit of help from Grandma.
What you need is monetization !
I know, it sounds frightening. It’s that 12-letter word that’s standing between you and that brand-new laptop you’re dreaming of. And for many software developers, monetization can be the element that stops them from pursuing their dream of creating even more software.
After all, if you’re not making any money from the awesome software you’ve already developed, why make more?
Monetization is hard, but it’s certainly not impossible. In fact, there are many different ways that you can monetize your app. You just need to choose the monetization plan that works for you, and make it work. Here are some of the more popular monetization models around today.
1. Premium Products – The most straightforward way of monetizing your software is charging people to use it.
That’s right. Just put a price tag on it ($0.99 is a popular choice, though some apps are selling for as much as $999.999!) and hope that lots of people want to pay for it.
Seller beware! Most people expect apps to be free these days. So even though $0.99 may be less than a cup of coffee in most countries (heck, it’s even cheaper than water in some places!) the price may still be high enough to deter people from downloading your app in droves.
2. Integrate Ads – Advertisements have been funding entertainment since the beginning of time. Plop, plop, fizz, fizz, anyone? The same is true for apps.
Most free apps feature in-app advertising that promote everything from online deals, other amazing apps, and limited time offers. The upside is, many users don’t mind putting up with advertisements in order to get free apps. The downside is, the return on this type of monetization can often be very small.
3. In-App Purchases – Who would have thought people would pay hundreds of real dollars to buy virtual candy?
As it turns out, they will. That’s why the in-app purchase model has proved so successful for games such as Candy Crush, earning millions of dollars for the people who create them. This monetization model is used in many Freemium apps, so the primary product is free and customers are enticed to improve their experience by buying upgrades.
4. Bundling – For many developers, this is the easiest monetization model of all.
You earn money on your app without charging users a penny.
You don’t need to add in-app purchases or integrate advertisements.
All you do is bundle your software with third parties that have their own monetization platform and you’re ready to go. These third parties present offers to your users while your app is installed. The more offers your users accept, the more money you earn. You can develop more great software while your bundle partners do the monetization legwork.
Monetization may seem daunting at first, but that could be because it’s such a long word.
The bottom line is, monetization can be simple if you want it to be. Just choose the monetization plan that works best for you – and your app. You’ll be glad you did – and so will your grandmother.