By Numra – September 01, 2023
Today’s mobile app market is more competitive than ever. Mobile application developers are always exploring new and innovative ways to grab global attention and improve revenue streams. Thus, building various app monetization strategies becomes imperative if you follow a sustainable business model.
Out of 230 billion apps downloaded in 2021, over 95% were free to install. Still, the industry generated $400 billion in 2021, as per Statista. Thus, this blog will dive into the factors that make it thrive even when it’s free to install. We will also explain app monetization, various revenue streams, and how to maximize your income. So, without further ado, let us dive right into it!
Mobile App Monetization Strategies
Mobile applications are seldom free. Upfront monetization is one of the most effective ways to generate application revenue. Nevertheless, with the increasing internet accessibility, in-app purchases have become a more lucrative model for app monetization. So, if you are thinking about how to monetize an app without ads, keep reading to understand various app monetization models:
- Free & Paid App Versions Model
Using paid and free version approaches, developers can limit certain features in a free app to encourage the users to upgrade to monetize an app. It provides a free option for users to use those applications absolutely free of cost. Nevertheless, they can pay for upgraded features and functions if they wish to enjoy luxury features.
- Free App with In-App Purchases
Another monetization strategy is in-app purchases while keeping the application free of cost. If you are looking for how to monetize an app without ads, this model is it! Using this model, basic features are free to use. Nevertheless, advanced features are monetized following such a strategy. However, users can access premium features in certain cases without paying or breaking through the application.
- Free App Using a Subscription
Some developers choose to create free apps with a subscription model. Using this strategy, the app is free to download with limited access to the services offered. If users want added access to advanced features, they can subscribe to one of the many plans provided as per their needs. This is great for helping developers build up a user base and turn that user base into paid app subscribers.
- Paid and Partnership Apps
This model is very popular in a niche market; companies in this space approach the app developer for sponsorship opportunities to get their brand in front of users. If the user base is large enough, monetization through brand sponsorship, partnership, or acquisition has also proven to be a good choice for mobile applications. This is one of the most effective ways on how to monetize an app without ads!
- In-App Purchases: Instore and Out-of-store
In-app purchase revenue can be divided into two parts, i.e., in-store and out-of-store revenue. Instore revenue is generated if the user pursues in-app purchases through the app store. Majorly this share of revenue is driven by gaming and subscription apps. On the other hand, any revenue generated directly in the app is referred to as out-of-store revenue. Typically, out-of-store revenue always accounts for more than in-store revenue.
How to Monetize an App Without Ads
If you don’t know how to monetize an app without ads, say hi to awareness and understanding! It’s of utmost importance to understand that implementing a monetization strategy without an ad requires careful planning and execution. Nevertheless, the following are some of the practices for implementing a non-ad-based monetization strategy:
- Provide value to the user and enhance their experience
- Offer various subscription plans to cater to user needs and budgets
- Make seamless purchases and subscriptions leading to conversion
- Clearly communicate the functionality and offerings of your app
- Request user feedback and incorporate it to improve user experience
Conclusion
Before getting started with the development of the app, you must always question the uniqueness of your idea and the value it adds. Once done, go on and consider if you, yourself, will be willing to pay for this app. How much will you pay for such an app?
When you ask yourself these questions, you understand your ideology and empathize with your intended audience for the application. If you can carefully do this, you can easily brainstorm how to monetize an app without ads. Answering these questions is essential as any app made is not just an app to solve a puzzle. Rather, it represents the company’s core values, brand image, customer loyalty, and much more.
AIM Digital Technologies app development model is smart, strategic, yet simple to implement for maximum return. If you are looking for solutions on how to monetize your app, you have us! We monetize apps using various methods designed to suit clients’ needs.
Remember! Using the right technology can help maximize revenue and become worthwhile for users. Our combination of creation, iteration, and acquisition creates a perfect circle of growth. Contact us today!
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