From Concept to Ca-Ching: 13 App Monetization Tactics to Make?$$$ Revenue | App-etizer #1

In the modern era, mobile apps power so many aspects of our daily lives. We rely on apps for transportation like rideshares, socializing through dating platforms, ordering meals, entertainment like games and videos, education like language learning, and countless other functions. Mobile apps have become integral to how we navigate and participate in the world around us.

According to data, we can download approximately 95 apps out of 100 for free. However, it's important to keep in mind that all mobile apps are businesses that need to make money to stay in operation.

So how can apps that offer free access bring in revenue? What business models allow app developers to earn income and invest in improving their products over time?

The solution is finding effective ways to monetize mobile apps.

In the first edition of App-etizer, we have collected 13 ways to start or optimize your mobile app monetization processes.

So, if you are ready, let’s jump in!

1. In-App Advertising (IAA)

Different types of in-app ads include banners, full-screen interstitials, native ads blended into content, engaging video ads, and playable demos. Choosing the right ad formats to match the user experience is key. Overall, in-app advertising provides a major income source for app developers while keeping apps free for users.

2. In-App Purchases (IAP)

In-app purchases allow users to buy digital goods within apps and are another effective monetization model. IAPs can even enhance user experience by offering helpful bonuses or upgrades at the right moments. There are consumable IAPs like extra lives that get used up, and non-consumable IAPs like unlocking ad-free mode purchased once. Strategically offering IAPs when users need them most can drive revenue while improving engagement.

3. Subscription

Subscription models are a common mobile app monetization strategy where users pay for ongoing access to premium features. Rather than a one-size-fits-all approach, tiered subscription packages (basic, pro, premium, etc.) allow developers to cater to diverse users. Paid subscribers can get enhanced experiences like unlimited usage and premium content compared to free users. Subscriptions work well for apps like dating platforms where users derive continuous value.?

4. Freemium

The freemium model is a very popular way for mobile apps to generate revenue. It provides basic features for free to attract a wide user base while offering premium features and content as in-app purchases. This lets users try out the app before committing to paid subscriptions for an enhanced, ad-free experience. Music and video streaming apps like Spotify and YouTube exemplify successful freemium models.?

The free versions help apps gain broad exposure and adoption, while paid subscriptions unlock additional value for engaged users, creating a win-win monetization strategy.?

5. Affiliate Marketing

Affiliate advertising is another app monetization strategy that promotes relevant products through in-app recommendations. By featuring affiliate links to complementary apps and services, developers can monetize their audience's trust in their recommendations. Though affiliate payouts may be modest, strategic affiliate partnerships allow developers to highlight apps their users would find useful at the right moments in the app journey.?

6. SMS Marketing

SMS marketing remains a viable mobile app monetization method when done right. By using relatable language tailored to modern communication styles, apps can make SMS sponsorship messages feel less intrusive. Since most apps access user phone numbers during signup, obtaining consent to send opt-in SMS sponsorships during this process enables seamless implementation.?

Though an old-school strategy, permission-based SMS sponsorships allow apps to generate revenue from their existing user database if the messaging feels natural rather than spammy.?

7. Email Marketing

Email marketing is another old-school mobile app monetization strategy similar to SMS sponsorships. While apps can easily access user emails, consent is still required before sending promotional emails. A major advantage of email campaigns is they are highly cost-effective for developers to implement. However, email alone may not drive strong revenue compared to other modern methods.?

The best approach may be a hybrid model combining email with multiple strategies like in-app advertising or subscriptions. With user permission, emails can complement other monetization efforts by further engaging an app's audience.?

8. Influencer Marketing

Influencer marketing leverages recommendations from trusted voices to boost app credibility and reach. By partnering with influencers loved by their target demographic, apps can improve brand image, establish authenticity, and attract engaged new users through social proof.?

However, the influencer must truly resonate with the audience for this monetization strategy to pay off. And the costs associated with top influencers may not fit indie developers' budgets. But when aligned with the right influencer personality that engages their community, developers gain access to new audiences and establish lasting brand relationships, making the investment worthwhile.

9. Sponsorships

Sponsorships from relevant brands can provide revenue for apps with large, targeted user bases. During app development, considering the target demographic and brands that may want exposure to that audience can unlock sponsorship opportunities. For apps with enough users, sponsorships enable the outside promotion of the app while allowing the app to cross-promote the sponsor's products.?

However, sponsorships may be difficult for small developers to obtain at first since brands prefer apps with established audiences. But for apps that gain traction in a specific market, cultivating strategic sponsorships and partnerships provides monetization and cross-promotion potential.?

10. Licensing

Licensing an app's code or user data presents another monetization avenue. Developers with highly valuable code or user insights could sell access through licensing agreements, allowing others to leverage their work for a fee. For example, a successful gaming app could license its code for reskinning and reuse. However, licensing options are likely limited for indie developers, as significant value is required to justify the high costs.

11. Crowdfunding

Crowdfunding leverages small contributions from a large number of backers, providing a monetization option especially helpful for early-stage app development. Developers promote their app concepts on crowdfunding platforms to raise funds and build a community of engaged users. Successful campaigns deliver financial support plus valuable feedback to refine the product, word-of-mouth promotion, and loyal user advocacy. However, without a prototype to demonstrate, new developers may struggle to pitch their vision convincingly.?

12. Donations

Donations offer a monetization model similar to crowdfunding but with some key differences. Rather than one-time campaigns, donations allow app users to continually contribute as ongoing patrons to support free access for all. Developers suggest donation amounts that meaningfully help fund improvements.?

Compared to crowdfunding's temporary boost, donations provide a sustainable revenue stream from engaged users who want to help the app thrive. While amounts are voluntary, clear donation goals and conveying impact inspire ongoing patronage at any stage.

13. Offerwalls

Offerwalls incentivize users to perform desired actions like surveys or app downloads in exchange for rewards. This facilitates cross-promotion between apps while monetizing user activities. Developers can integrate offerwalls seamlessly along with affiliate marketing for a hybrid model.?

By rewarding specific behaviors, offerwalls attract new users and conversions while generating revenue. However, rewards must provide sufficient value to motivate users. When designed strategically, offerwalls leverage user engagement across apps for mutually beneficial promotion and monetization.

If just having a well-designed mobile app monetization model doesn’t satisfy you and you always aim for better and further, why don’t you schedule a demo today and discover more about our ASO solutions?

Cheers,

Yark?n Tepe