App monetization guide: 4 strategies, that actually work
In this article, we’ll explore the 4 strategies for how you can monetize your Flutter app, step-by-step, while keeping up with the latest trends.
What is app monetization?
It’s a combination of tools and processes that allows developers to get a stable income from the app. Some apps are designed to increase the number of ordered items or median cart amount. Gaming apps could be designed with the intent to make in-app purchases with virtual currency (coins, diamonds). Some apps include video ads or marketing banners. There are multiple ways to get monetization in your app; if done correctly, you can monetize even a free-to-use app.
Before app monetization, make sure your app is ready to be published on the App Store or Google Play.
Once you're confident that your app is ready to hit the market, it's time to consider various strategies for monetizing it.
Strategy 1. In-App Advertising
Ads can benefit free apps where users expect to view ads in exchange for using the service. Rewarded video ads is an effective way to increase engagement by offering users rewards (like in-game currency or additional features) in exchange for watching a short video.
At MobileXapps, we focus not only on developing Flutter apps but also on app optimization, app monetization, and ad integration. If you’re looking for ways to generate income from your hard work and sustain the app's future development, reach out. Leave a message for our experts and book a free consultation.
Strategy 2. In-App Purchases
Profit is generated from purchases made by users within the app.
There are two types of in-app purchases typically found in gaming apps:
There are two types of in-app purchases typically found in gaming apps:
Consumable Products
These are items that are used once and then depleted, requiring repurchase. Examples include games that offer hints, extra lives, or the ability to skip to the next level.
Non-Consumable Products
These are products that do not "run out" after purchase. For example, an item of character equipment or an exclusive feature. In a camera or photo editing app, access to some filters and tools can be purchased once and kept permanently.
Both types can successfully drive in-app sales and app monetization. However, it's important to consider which type resonates best with your target audience.
Both types can successfully drive in-app sales and app monetization. However, it's important to consider which type resonates best with your target audience.
Where to Start
When it comes to in-app purchases, you should study what your competitors can offer and understand their pricing policy, especially in the context of Flutter app monetization. This analysis will provide valuable insights into what customers are willing to pay for, helping you align your offerings with market expectations. Additionally, analyzing user behavior is essential; you should ask yourself what makes your app more valuable, appealing, and engaging. Implementing app monetization best practices can enhance the user experience while maximizing revenue.
Consider offering different pricing tiers as well. This is a crucial factor in your in-app advertising strategy. A user may spend five dollars once and stop at that, or they might spend up to 20 dollars on a similar product if it is priced, for instance, at just one dollar. This taps into buyer psychology — they are more likely to end up spending a larger total amount if the initial purchase is smaller.
To further engage users, consider effectively incorporating popup ads in your app. By implementing in-app ads thoughtfully, you can maintain a balance between generating revenue and ensuring a positive user experience.
Finally, regular in-app updates will keep your app fresh and engaging, encouraging users to explore new features and offerings.
Consider offering different pricing tiers as well. This is a crucial factor in your in-app advertising strategy. A user may spend five dollars once and stop at that, or they might spend up to 20 dollars on a similar product if it is priced, for instance, at just one dollar. This taps into buyer psychology — they are more likely to end up spending a larger total amount if the initial purchase is smaller.
To further engage users, consider effectively incorporating popup ads in your app. By implementing in-app ads thoughtfully, you can maintain a balance between generating revenue and ensuring a positive user experience.
Finally, regular in-app updates will keep your app fresh and engaging, encouraging users to explore new features and offerings.
Strategy 3. Paid subscription & Freemium
There are several options for immediate payment before users can start using an app:
- A small payment before using the app (usually no more than five dollars)
- Payment for a monthly subscription to the app, after which the app becomes inaccessible when the subscription expires
- The app is available for free, and monetization occurs through in-app purchases
Apps that offer a service with ongoing value where users pay monthly. A great example is Spotify, which offers an ad-free listening experience. This app also has a free version, but full functionality is only available after purchasing the paid version.
Gaming apps with addictive elements, which keep users coming back repeatedly. For example, Subway Surfers is a fun endless runner game where players can buy additional options to make the gameplay more exciting.
Where to Start
If you're planning to use paid subscriptions as your primary monetization model, start with the following steps
- Keep in mind that the paid subscription is the main method of app monetization. Any other "aggressive" forms of monetization should be used with caution. A user might stop using the app altogether if, in addition to a paid subscription, they are forced to watch ads or make additional purchases.
- Determine what kinds of subscriptions are worth paying for. For example, apps that require users to watch videos first could offer a low-cost subscription to skip them. In other cases, to encourage users to renew their subscriptions, you may need to offer additional premium features.
- Experiment with different subscription plans. Some users may not want to pay five dollars per month, but they might be okay with paying 45 dollars per year. Try offering monthly and yearly subscriptions at different rates to find out which option generates the most revenue and ensures the longest customer lifetime.
Case Studies: Successful Monetization with MobileXapps
Strategy 4. Combine monetization strategies
Another option is to combine several different monetization strategies.
For example, in-app purchases can serve as the main source of revenue while also incorporating ads in the app to generate income, including users who don’t make any purchases. Alternatively, especially for freemium models, a combination of ads and in-app purchases can be offered alongside a subscription option. This subscription would allow users to skip ads and gain access to additional features.
It’s not recommended to use all monetization strategies simultaneously within one app. Focus on the ones that will work most effectively in your case. And if the app is primarily used to drive sales through a website, in the retail industry, for example, it’s best to make the app completely free.
For example, in-app purchases can serve as the main source of revenue while also incorporating ads in the app to generate income, including users who don’t make any purchases. Alternatively, especially for freemium models, a combination of ads and in-app purchases can be offered alongside a subscription option. This subscription would allow users to skip ads and gain access to additional features.
It’s not recommended to use all monetization strategies simultaneously within one app. Focus on the ones that will work most effectively in your case. And if the app is primarily used to drive sales through a website, in the retail industry, for example, it’s best to make the app completely free.
FAQ
To monetize your app effectively, choose a trusted partner and integrate the necessary tools to start generating revenue. With over 200 apps successfully launched on the App Store and Google Play, our experts at MobileXapps can help you achieve this quickly and reliably, enhancing user experience while maximizing your earnings.
