It is the age of smartphones and mobile devices. As a result, mobile apps have become more accessible than ever, for both businesses and consumers. Anyone can build apps with online app creators without coding, and enter the mobile app market. However, today we are here to discuss about mobile app monetization. Explore the blog further and find out all about the two most popular models of mobile app monetization. Let us begin!
Table of Contents
An introduction to mobile app monetization
The process of acquiring paid leads and conversions, and implementing measures to earn revenue through the mobile app is known as mobile app monetization. Although a mCommerce mobile app mainly earns revenue by selling commodities, the scope of monetization goes beyond mere selling or buying of ideas.
For instance, Amazon has a free shopping app where people can buy products. However, the “premium” package subscribers get some added benefits like early product delivery, access to video streaming platform, and more. Although there are multiple techniques of mobile app monetization, the “Freemium Model” and the “Premium Model” remain the most popular.
The Pros and Cons of the Freemium Model
Most of the apps available on the app stores follow this model of monetization. Here, the app is free to install and the basic features of the app are also accessible for free.
However, as the users proceed to unlock superior features, they pay certain subscription amount. For instance, the basic YouTube app is free however, a premium ad free version is chargeable.
Pros of the Freemium Model:
- Wider consumer base as more people download the app
- Attracts higher rate of attention and revenue
- More likely to attract positive reviews
- Opens a range of in-app monetization techniques like ads, subscriptions, etc.
Cons of the Freemium Model:
- Immense competition due to a greater number of free apps
- Reliability on third party resources (for ads, subscriptions, etc.)
- Conversions take more time
- Lack of certainty about revenue
The Pros and Cons of the Premium Model
Premium apps are chargeable, and users need to pay one time download fees for accessing it. The services can thereafter also be divided into tiers and then charged as per the user’s choice of packages.
For example, the popular ensemble of utility app Simple Mobile Tools is an example of a paid app. It is ad free and ensures a premium experience.
Pros of the Premium Model:
- The app can start earning immediately
- Helps build a niche market of loyal customers
- Easy to track and assess revenue metrics
Cons of the Premium Model:
- Lesser number of users and traffic
- Higher expectations from users
- Negligible scope of earning through ads and other resources
How to pick the best model for your mobile app
If you are still skeptical about choosing a monetization model, let us guide you further. Well, according to us, this decision should be made and guided as per certain aspects and factors related to your app.
You can go for a freemium model if you want to:
- Keep your opportunities open for ads and in-app purchases
- Target a large number of users who are not ready to pay at first
- Scale your app features gradually as the user-base increases
- Enter the app league of most common monetization model
Else, you can go for a premium model if you wish to:
- Build a luxury niche for your app
- Target only paid and loyal traffic
- Ensure high-end features in the app
- Eliminate the need for ads and in-app purchases
This was all from our side for now. Sign up for AppMySite DIY code-free app builder and build your own app today! Implement a monetization model of your choice and earn good revenue and conversions. Hurry! Go ahead and seize the day now!