Paid subscription
This is the most common way to generate income from the application, when users pay monthly for access to functionality. This model is suitable for applications that regularly publish new content, for example, movies, music, education and self-development, dating, etc. Subscription is considered one of the most effective monetization models.
Pros:
Stable income - interested users will pay regularly.
User loyalty, because subscriptions usually cost very little. For example, the cost per month is comparable to the price of a cup of coffee.
App stores willingly promote such applications because... They charge a subscription fee.
Minuses:
Not suitable for all applications, for example, users will not pay for simple services like a to-do sheet or calculator. The subscription is also not suitable for e-commerce applications: online stores or aggregators.
In order not to lose your audience, you will have to regularly release new content.
Subscription is quite difficult to implement technically and then track.
Combination of free and premium versions (freemium)
In the free version, users have access to a minimum set of functions, and additional features can be purchased separately. In this way, you can attract and interest users, and then, if they like the application, push them to purchase advanced functionality. For example, many photo editors, diaries and mood trackers, and VPN services work according to this scheme.
Pros:
The application turns out to be shareware, which attracts the audience and maintains its loyalty.
The free version can be combined with advertising, and this is an additional source of income.
Ease of implementation.
Suitable for most mobile applications.
Minuses:
Some users never buy the premium version, which means they do not generate income.
You need to find the optimal balance between free and paid features. Free functionality should interest users, and paid functionality should be valuable enough to make them want to pay for it.
Advertising
Advertising within mobile applications is also a common method of monetization. The app owner receives a fee for advertising. There are several types of in-app advertising, such as banner, native, video and gaming. Thanks to this variety, advertisements can be tailored to a specific application so as not to cause negative user reactions. And if the advertising is targeted at the target audience and corresponds to the theme of the application, there will be even more views and income.
Pros:
It can be implemented in a free application that users willingly and use a lot.
Variety of advertising formats.
Ease of implementation.
Minuses:
Not suitable for all applications, for example, when ordering a taxi, viewing advertising will only cause negativity.
User fatigue from advertising can also cause a negative reaction and withdrawal.
Advertising brings significant income only in applications with a large audience, because... the transition fee is quite low.
In-App Purchases
In-app purchases are common in games and entertainment apps. In games, users can purchase virtual currency and then use it to buy items, upgrade their character, or receive hints. In dating apps, you can buy promotion of your profile, additional likes, etc.
Pros:
Can be used in both free and paid applications.
Users remain loyal due to the fact that purchases are voluntary, but at the same time open up many opportunities.
Minuses:
You first need to interest and involve users.
The need to maintain a balance between free and paid features.
Not all users make purchases.
Payment per download
The user pays for the application only once - when he downloads it. Now this is not the most popular method of monetization, because... it was replaced by a subscription system.
Pros:
Instant income from each new user.
Easy to implement - just publish the application in the store and set its price.
Minuses:
You cannot try the product before you buy, which discourages many users.
High competition with free apps and subscription apps.
The user makes a purchase only once and does not generate income in the future.
Piracy - paid applications are stolen and made publicly available.
Nowadays, there is a lot of money in the mobile application industry, and your application can not only be a business tool, but also generate income. You should consider possible monetization strategies and decide which one will be most effective for your product at the mobile application design stage. Our specialists will select the optimal solution for you that will help you earn money and at the same time be comfortable for users.
This is the most common way to generate income from the application, when users pay monthly for access to functionality. This model is suitable for applications that regularly publish new content, for example, movies, music, education and self-development, dating, etc. Subscription is considered one of the most effective monetization models.
Pros:
Stable income - interested users will pay regularly.
User loyalty, because subscriptions usually cost very little. For example, the cost per month is comparable to the price of a cup of coffee.
App stores willingly promote such applications because... They charge a subscription fee.
Minuses:
Not suitable for all applications, for example, users will not pay for simple services like a to-do sheet or calculator. The subscription is also not suitable for e-commerce applications: online stores or aggregators.
In order not to lose your audience, you will have to regularly release new content.
Subscription is quite difficult to implement technically and then track.
Combination of free and premium versions (freemium)
In the free version, users have access to a minimum set of functions, and additional features can be purchased separately. In this way, you can attract and interest users, and then, if they like the application, push them to purchase advanced functionality. For example, many photo editors, diaries and mood trackers, and VPN services work according to this scheme.
Pros:
The application turns out to be shareware, which attracts the audience and maintains its loyalty.
The free version can be combined with advertising, and this is an additional source of income.
Ease of implementation.
Suitable for most mobile applications.
Minuses:
Some users never buy the premium version, which means they do not generate income.
You need to find the optimal balance between free and paid features. Free functionality should interest users, and paid functionality should be valuable enough to make them want to pay for it.
Advertising
Advertising within mobile applications is also a common method of monetization. The app owner receives a fee for advertising. There are several types of in-app advertising, such as banner, native, video and gaming. Thanks to this variety, advertisements can be tailored to a specific application so as not to cause negative user reactions. And if the advertising is targeted at the target audience and corresponds to the theme of the application, there will be even more views and income.
Pros:
It can be implemented in a free application that users willingly and use a lot.
Variety of advertising formats.
Ease of implementation.
Minuses:
Not suitable for all applications, for example, when ordering a taxi, viewing advertising will only cause negativity.
User fatigue from advertising can also cause a negative reaction and withdrawal.
Advertising brings significant income only in applications with a large audience, because... the transition fee is quite low.
In-App Purchases
In-app purchases are common in games and entertainment apps. In games, users can purchase virtual currency and then use it to buy items, upgrade their character, or receive hints. In dating apps, you can buy promotion of your profile, additional likes, etc.
Pros:
Can be used in both free and paid applications.
Users remain loyal due to the fact that purchases are voluntary, but at the same time open up many opportunities.
Minuses:
You first need to interest and involve users.
The need to maintain a balance between free and paid features.
Not all users make purchases.
Payment per download
The user pays for the application only once - when he downloads it. Now this is not the most popular method of monetization, because... it was replaced by a subscription system.
Pros:
Instant income from each new user.
Easy to implement - just publish the application in the store and set its price.
Minuses:
You cannot try the product before you buy, which discourages many users.
High competition with free apps and subscription apps.
The user makes a purchase only once and does not generate income in the future.
Piracy - paid applications are stolen and made publicly available.
Nowadays, there is a lot of money in the mobile application industry, and your application can not only be a business tool, but also generate income. You should consider possible monetization strategies and decide which one will be most effective for your product at the mobile application design stage. Our specialists will select the optimal solution for you that will help you earn money and at the same time be comfortable for users.
