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What are the best ways to implement a subscription-based monetization model?

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Subscription-based monetization is a popular and effective way to generate recurring revenue from your mobile app. However, it also requires careful planning and execution to ensure that you offer value to your users, avoid churn, and comply with the app store policies. In this article, we will explore some of the best practices and tips to implement a subscription-based monetization model for your mobile app.

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Zohrab Taghiyev

Certified iOS Developer | Content Creator

1 Choose the right subscription type

There are different types of subscriptions that you can offer to your users, depending on the nature and functionality of your app. For example, you can have a freemium model, where users can access some basic features for free and upgrade to a premium plan for more benefits. Or, you can have a paywall model, where users have to pay to access any content or service. Or, you can have a hybrid model, where users can choose between different tiers of subscriptions with varying features and prices. The key is to choose the type that best suits your app's value proposition and user expectations.

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Tobin Harris
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It’s not uncommon for companies to try different approaches. For example, start with a paywall and then do an experiment where 50% of users get a freemium version, and see which results in the most revenue.

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Chirag Thummar

Expert Software Engineer | Kotlin | Jetpack Compose | KMP | Java | Flutter | Research | AI
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Subscription is a good way of monetization widely accepted by developers and companies. There are two two types of in-app monetization one-time and subscription-based. In my experience, subscription-based monetization is best.

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2 Set the right price and duration

Pricing and duration are two crucial factors that influence your users' decision to subscribe and renew their subscriptions. You need to balance the value that you provide to your users with the cost that they are willing to pay. You also need to consider the market demand, the competition, and the app store fees. Additionally, you need to decide how often you want to charge your users, whether monthly, quarterly, annually, or otherwise. Generally, shorter durations allow more flexibility and convenience for your users, while longer durations offer more stability and loyalty for you.

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Tobin Harris
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It’s likely that your pricing will never be perfect first-time, so put yourself in a position where you can experiment with different pricing.

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3 Optimize the user journey

The user journey is the path that your users take from discovering your app to subscribing to it. You need to optimize this journey to make it as smooth and engaging as possible. This means designing a clear and attractive app store page, creating a compelling onboarding experience, highlighting the benefits of your subscription, providing easy and secure payment options, and sending timely and relevant reminders and notifications. You also need to avoid common pitfalls, such as confusing or misleading terms, hidden or extra charges, and intrusive or annoying prompts.

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4 Deliver value and quality

The most important factor that determines the success of your subscription-based monetization model is the value and quality that you deliver to your users. You need to ensure that your app meets and exceeds your users' needs and expectations, and that you provide them with a consistent and satisfying experience. You also need to keep your app updated and improved, adding new features and content, fixing bugs and errors, and soliciting feedback and suggestions. You need to show your users that you care about them and that you are worth their trust and money.

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Chirag Thummar

Expert Software Engineer | Kotlin | Jetpack Compose | KMP | Java | Flutter | Research | AI
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When you deliver valuable content to the user via your app. You can attract more premium users. You can give user a free content so that they are used to app and tends to go for a premium plans.

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5 Retain and reward your subscribers

Retention is the key to sustaining and growing your subscription-based revenue. You need to keep your subscribers happy and loyal, and prevent them from canceling or switching to other apps. You can do this by offering them incentives and rewards, such as discounts, free trials, referrals, bonuses, or exclusive access. You can also use analytics and data to understand your subscribers' behavior and preferences, and segment them into different groups based on their usage, engagement, and value. You can then tailor your communication and marketing strategies to each group, and provide them with personalized and relevant offers and messages.

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Chirag Thummar

Expert Software Engineer | Kotlin | Jetpack Compose | KMP | Java | Flutter | Research | AI
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Retaining users on apps or subscriptions is a more important aspect of the apps. You can give more discount for returning users. or give more priority over new users.

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6 Follow the app store guidelines

Finally, you need to follow the app store guidelines and policies regarding subscription-based monetization. These guidelines vary depending on the platform and the category of your app, but they generally cover aspects such as the disclosure of subscription terms and prices, the cancellation and refund processes, the management and renewal of subscriptions, and the handling of customer support and complaints. You need to comply with these guidelines to avoid any penalties or violations, and to maintain a good reputation and relationship with the app store and your users.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Zohrab Taghiyev

Certified iOS Developer | Content Creator
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Offer Free Trials Providing free trial periods for your subscription can encourage users to try out your premium features. This helps them understand the value of the subscription and can lead to more conversions. Ensure that the trial duration is long enough for users to explore and experience the benefits of the subscription.

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What are the best ways to implement a subscription-based monetization model?

1

2

3

4

5

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1 Choose the right subscription type

2 Set the right price and duration

3 Optimize the user journey

4 Deliver value and quality

5 Retain and reward your subscribers

6 Follow the app store guidelines

7 Here’s what else to consider

Mobile Applications

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What are the best ways to implement a subscription-based monetization model?

1

2

3

4

5

6

7

1 Choose the right subscription type

2 Set the right price and duration

3 Optimize the user journey

4 Deliver value and quality

5 Retain and reward your subscribers

6 Follow the app store guidelines

7 Here’s what else to consider

Mobile Applications

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