By Ali Farzhan | October 26, 2015 | 2 Comments
This post covers the principle questions you need to ask when determining the monetization strategy for your mobile application.
I know you are feeling lost especially with all the information out there on the various models to use, experts saying this and that, sometimes totally contradicting themselves, but you have to realize that some strategies may be successful for that specific app, but it may not work for other apps.
So you have to be careful, rather than focus on tactics, focus on core guidelines.
These three questions will guide you through determining the best strategy for you, lets you zero in on key points, and lets you be aware of factors that you or your competitors may not be thinking about yet.
1. Your app’s key features and how it would benefit users?
Focus on benefits. Your features are good, it will be even better if it can be translated to benefits to users.
The features will determine whether your users is willing to pay for downloading your app. If the app is free, you have to determine which features that can be offered as in-app purchases and which features are free.
However, you must ensure that the free version has enough to entice the user to pay more for buying.
2. What is the most appropriate app store category to choose from?
Revenue varies, and it is largely dependent on the amount of free and paid apps you have the different categories.
For example, apps in the popular social networking category will generate more downloads than apps in the lesser known productivity category. But people are not willing to pay for these social networking apps. As paid apps within the productivity category is more than the social network category.
So choosing the right category is important. You can consider cross-category promotion, say you have a free social networking category app, that is useful to users, but to add more functionality to it, that is even more useful and users are willing to pay, promote it within the social networking app itself.
3. Who are your competitors?
By researching and studying apps that are similar to yours, you can determine where the demand is.
If you have a unique app in the market, that will benefit users, then offer it as a paid app. Or, if you realize that the app is not unique but do have features that are not covered by your competitors, then offer these features as upgrades or premium services.
This is one of the most important questions to ask yourself. When you look at similar apps within the marketplace, you can determine the monetization strategies used by your competitors within the same category.
This way, you can learn what is working and what is not. Such as, dating apps have the basic versions which are offered as free but then they offer premium services and additional features as in-app purchases. Some game apps, offer ad-free premium services, so you are not disturbed by those pesky ads when they pop up. Determine what users are buying? What are they willing to buy? How much will they pay? Keep these questions in mind when evaluating options.
At MishNat, we are experts in determining where your app fits in and how we can leverage that to get the best out of it. Do you need an opinion on which strategy to use that best fits you? If yes, send us an email.
About 10 Min ago
Great article, i love how indept the top is.
4 days ago
There are many fine points regarding application development here.
2 days ago
I completly agree with Mary. Android and ios develoment is the next step for any business.
About 50 Min ago
Its just like it was when websites came around. People did not think their business needed one but look now every business that whants to stand out needs to have one.
About 20 Min ago
Few years ago android and ios apps where mostly for fun and play but now most people rely on them as if it was mandetory. I personally think every normal company should have an android and ios application.