23 Jun 2016, Katarzyna Lorenc 23 Jun 2016, Katarzyna Lorenc Tips & Tricks 5 smart strategies for generating revenue from your app 83 views It doesn’t matter whether you’re a small business or an international organization – when developing an app, you expect this type of investment to bring you substantial revenue. But just because apps are trendy and every business seems to have one, it doesn’t mean that you should treat the process lightly. In fact, experience shows that that many of these beautiful apps simply don’t generate any revenue. As a result, many people end up losing faith in app development. But it doesn’t have to be this way. Here are 5 smart strategies to help you create an app that generates serious revenue. 1. ADVERTISING You might have designed a smart in-app purchasing scheme or developed enticing pricing for subscription services but the vast majority of people still wants their apps for free. In fact, a small chunk of your user base will be ready to pay for your app. That’s why you should consider advertising. We’re not talking about annoying banners here, but a range of diversified ad products of various units and sizes. If you pair these up with analytics tools, you’re bound to have great CPMs and CTRs at your disposal too. 2. EXCLUSIVE APP FEATURES For some apps it is a good idea to offer two versions – one free or cheap and one which users pay for. The free app is there to give users a taste of what the product is about. You can set up a trial period to entice users to your offer and get them hooked on your app. Building from there, offer your paid version to help users integrate the app with their lives even better. Offer substantial upgrades and a range of VIP features. That’s how you progressively build the value of your products and make your audience feel that your app is worth its price. 3. VARIOUS PAYMENT OPTIONS If you choose to monetize your app with subscriptions or in-app purchases, make sure to give your users multiple payment options – with one that asymmetrically dominates the horizon. One good example of subscription strategy was employed by the Economist: A web subscription was offered at $59, print subscription at $125 and the combination of both print and web subscriptions at… $125. You can probably guess that the third options was the most popular because it seemed to offer the best value. Develop this type of pricing strategy and you’re bound to boost your conversion rate. 4. BLENDED MODELS (IN-APP PURCHASES AND ADVERTISING) Another interesting option is building a blended model, where in-app purchases work together with advertising. Instead of setting your eyes at a single monetization strategy and offering lots of in-app purchases or subscription options, try mixing different tactics to come up with a hybrid that works for your users. Include a couple of advertisements, several gated features and a few virtual items for your users to purchase. Monitor how your audience reacts to these – while some users love in-app purchases, other find them annoying. By building a blended monetization scheme, you’ll keep everyone happy. 5. PARTNERSHIPS If you know a company that has a similar customer base, you can look for smart ways for integrating their offer into your app for a special referral fee. This type of partnership however works only if your partner can really benefit from exposure to your audience. Naturally, if you’re adding this type of features to your app, remember that they need to be perfectly integrated with the rest of it to provide a seamless experience. If you find the right partner, they can become a great source of revenue. It’s key to think about app monetization already during the process of designing your app. Try one or more of the schemes listed above and you can be sure that your app brings you substantial revenue, helping to further engage and convert your audience. Ready to create your own mobile app? Fill in this form to get a free quote for your app idea. Katarzyna Lorenc Marketing Specialist you might also like 15 Aug 2016, Katarzyna Lorenc Tips & Tricks 7 tips for perfect app store optimization Tips & Tricks 15 Aug 2016, Katarzyna Lorenc 7 tips for perfect app store optimization Do you know what ASO means? This acronym stands for app store optimization - a process similar to SEO which can make your app appear much higher in the App Store or Google Play. Want to give it a try? Check our 7 brilliant tips to boost your app store presence. 07 Oct 2016, Katarzyna Lorenc Project Management Android or iOS? Which mobile platform should you choose? Project Management 07 Oct 2016, Katarzyna Lorenc Android or iOS? Which mobile platform should you choose? Developing a mobile application requires a lot of though decisions. Graphics, functionalities, software architecture – they’re all very important and can drive your app idea to success or cause a failure. However, one of the most important decisions during the app development process is the choice of platform. How to do it wisely? Check our guidelines. 06 Mar 2017, Katarzyna Lorenc Project Management How not to be screwed by an app development company? The complete checklist Project Management 06 Mar 2017, Katarzyna Lorenc How not to be screwed by an app development company? The complete checklist What to keep in mind while signing an agreement with a software house? Our checklist will guide you step by step.