The pricing app strategy you choose for your application also makes a difference to the earning from mobile apps.
The answer to how do apps make money is best given by an iOS app development company.
So, it is must to be familiar with all the types of mobile app monetization strategies they can go with.
While the application is free to download and use, app publishers earn money based on the interactions on the advertisements displayed within the application. This app revenue model is highly considered and found to be profitable. The in-app advertising has several formats such as Interstitial ads, Banner ads, Video ads, Native ads, Text ads, Native ads, and so on.
The foremost monetization strategy that one considers when looking into how to make money of an app without ads is Freemium.
Here, the application is free to use. But, the users would have to pay some amount of money to buy a wide variety of virtual elements from the mobile application. This includes extra lives, blocking ads, premium app content, game currency, and more.
Another strategy that comes forward as the answer to how to monetize apps is the Subscription model.
Here, users are asked for a weekly, monthly, or annual fee in return of a particular service provided by the mobile app development company. This type of business and monetization model is often recommended in the case of cloud-based services, audio and video content providers such as Spotify, Google Music, and Netflix.
Note: Only 5% of the successful app developers are using subscriptions to get income from an app.
Sponsorship is yet another method of making an earning from a mobile app. This model is usually incorporated with those applications that already have regular users, and is suitable when connecting with brands from the same market niche.
When discussing in detail around how apps make money via this monetization strategy, there are two deals to go with –
Equally divide revenue from the mobile app
Set a monthly sponsorship fee.
Example: Weather Channel app relies on this business and monetization model to prevail in the market.
Crowdfunding, an alternate funding model to consider this year, is also one of the profitable ways to monetize apps for free.
Here, you exchange your app idea or publish an MVP version on platforms like KickStarter, CrowdFunder, Indiegogo, and Fundable to raise funds and do the needful in the field of marketing.
Example: In 2017, the Hello Earth game with a famous cat character earned USD 148k via such app monetization strategies.
This is another variation of sponsorship, however in place of granting advertising rights solely to one organization, you negotiate with a few interested parties and place their reference links in your application. This is a decent method to increase your income if you lack a wealthy player on the market who is ready to cover your costs.