App Monetization Strategies
The possibilities for monetizing a successful app are virtually limitless. Some of the most popular ways to generate additional revenue from a product include:
1
Advertising
In-app advertising is an obvious form of monetization. If you have a large user base and can integrate ads into your app in an unobtrusive way, selling ad space opens up a potentially lucrative revenue stream.
2
Sponsorships
A sponsorship is an alternative to native advertising that promotes meaningful collaboration between brands. With a sponsorship, you have more of a say in who you work with, which makes it easier to choose partners that reflect your values and the interests of your users.
3
In-app purchases
Not all apps can upsell additional purchases, but if it's a possibility for your product, in-app sales are an excellent way to monetize. In-app sales are fast and convenient, too. With the touch of a button, users can buy new features, often for a small cost.
4
Premium versions
Instead of, or in addition to, encouraging in-app purchases, you can offer a premium version of your app with enhanced features or an ad-free experience. This is an attractive option for anyone who prefers paying a one-time fee over making ongoing smaller purchases as they use your product or service.
5
Data sales
User data sales are controversial. But when done with transparency, they can be a way to monetize your app — so long as you are open with your customers and don't violate applicable privacy laws.
6
White labeling
White labeling is a little like franchising your app — you sell the core program to another company who applies their branding to it. This allows organizations to save on development costs and get a model that works. However, it does introduce new competition into your app ecosystem.
When developing a mobile app monetization strategy, it's always important to balance the user's experience with your own revenue generation needs. Using a variety of tools, rather than leaning too heavily on one option, will minimize the overall impact on your product and its users.
