The great thing about the app business is there are many ways to monetise an app. You can earn handsomely from having your own app.
I am going to deep dive in to the topic of how to monetise an app, so let’s get started.
1. Email Lists
When it comes to email marketing, there are three very important Metrics you must track in order to see a financial return.
How many open the email
How many clicks the link inside your emails
How many unsubscribe
The official app metric is called (CTR) Click Through Rate.
It is important to know exactly how much a user’s email is worth to you because once you have this figure you can set your financial goals.
How much is an email address worth to you?
Imagine one email address was worth just £1.00 per month to you. It would be wise to put plans in place that enable you to get 10,000 email addresses in your app right?
We cover this in much more detail with our licence holders on the monitisation program as well as the following.
- Building Trust
- Increasing Email Engagement
- Segmentation and personalization
- Email send frequency
- Email content quality and structure.
- GDPR & Email Lists
- Conversion Formula
- False Positives
- Understanding low hanging fruit Clicks/Views
Sell digital content and subscriptions, from within your apps.
3. Mobile Ads
Monetise an app across platforms with high-quality ads. There are a number of fantastic programs that manage ads, including AdMob by google. It is important to ensure that the adverts are integrated in to the content to give users the best experience.
You pay a one-off licence fee, and a small monthly commitment and a cut of profits and we develop your app and mentor you to success.
Freemium is one of our favourites, add value to your users with amazing tools and they will happily subscribe to your premium subscriptions. The great thing about apps is that you can give people a ‘little’ but enough to serve them leaving them with a need/desire to purchase an upgraded version. It’s a great way to monetise an app as it develops, rather than just at the point of sign up.
Partnering with advertisers, who will provide rewards to your users when they complete certain in-app actions is known as sponsorship.
This model assumes that your audience is big enough to attract brands to pay for exposure.
6. IN-APP PURCHASES
7. Paid for apps
This can prove a very powerful monetisation strategy in some industries, however, for our app licence holders we tend to recommend against using this method as the others are producing much better results.
It is as simple as the user paying a fee to download the app from Google or Apple stores.
So, What’s the best way to monetise an app?
The above monitisation strategies are not an overnight quick fix to finanical freedom.
The Chinese bamboo tree
The Chinese Bamboo Tree requires nurturing – water, fertile soil, sunshine. In its first year, we see no visible signs of activity. In the second year, again, no growth above the soil. The third, the fourth, still nothing. Our patience is tested and we begin to wonder if our efforts (caring, water, etc.) will ever be rewarded. And finally in the fifth year – behold, a miracle! We experience growth. And what growth it is! The Chinese Bamboo Tree grows 80 feet in just six weeks! Apps are often much the same, however, can produce fruit in lesser time, they still require nurturing which is precisely why we run the licence holder support program.
App owners or licence holders shouldn’t rely on a single model. Instead, more and more developers will need to integrate hybrid monetization strategies. Focus on several strategies and home in on the most profitable one for your market.
With mobile app revenue expecting to exceed $188 billion by 2020, it’s time for appreneurs to start taking monetization efforts seriously.
These are just some of the items we cover on our App Licence Holder Support Program.
- Market Research to identify the most profitable monitisation strategy
- Analysis of your audience, their spending habits and personas
- Value adding to give users a reason to buy, without aggressive monetisation.
- User Experience vs Monetisation
- Analaysis and tracking results constantly.