Nowadays the amount of time spends by people with their smartphones continues to increase. According to comScore’s, “the average American adult spends 2 hours, 51 minutes on their smartphone every day, about 86 hours a month.”
This is a reason mobile commerce has now become a major attraction of retailers. According to eMarketer “mobile’s share of U.S. online sales will surpass 50% by 2021. In other regions, the figure is already well above that”. Retailers are now investing in mobile app development to know every phase of their customer journey and to earn money consistently. But monetizing an app is not an easy task because most people don’t want to pay for downloading a new app for their smartphones. Therefore to earn money app developer allow ads to be placed within their mobile applications to generating revenue, it seems good but it often backfires when the propagation of ads disrupts the user and make them to delete the app altogether.
It also not makes sense to only rely on advertisements for earning money if your app is doing good in the market: that isn’t possible without a big marketing budget to start with. Therefore for an app, ads are not always an effective method of generating predictable revenue.
Best way to make money persistently
For developers, the efficient way to make money is to offer “freemium” apps, an app itself is free to download. These kinds of apps allow users to make additional transactions and involve subscriptions charges or even permit users to buy physical goods within their digital app. According to a study, only 5.2 percent of smartphone users make in-app purchases, but those users can spend twenty times as much as other users on a monthly basis.
How to make money with your app without ads
There are various ways through which you can monetize your app without ads, let’s discuss a few of them:
- Use “freemium” app model
- Develop a paid version of your application
- Have users subscribe to access your services
- Start app referral program
Let’s have look at above-mentioned ways more specifically:
1. Use “freemium” app model
Recently, the freemium app model has become a leading strategy for mobile app monetization as more than 61% of mobile app development companies suggesting it. This app model allows app users to “ Try Before Buy”, means allow them to download the app for free and pay later for additional features. It can be for one-time use, monthly use or for yearly use.
2. Develop a paid version of your app
For a paid model of an app, users have to pay the full amount to download an app but most of the users are unwilling to pay for an app, therefore, it’s not the best way to earn money. The paid model of an app only work best when:
- The app belongs to a renowned company
- There is no free alternative
Other than this, mobile app developers who want to monetize their app using a paid model will mostly create two separate versions of their app; a premium version and a free “lite” version that often has advertisements.
3. Users subscription to access services
This is the best model for businesses that offer oft-used services such as news, music, videos, books etc. This service unlocks the content and other features for users. It can be automatically renewing just like Netflix. In this app you have to pay monthly charges and amount will deduct from your bank account automatically.
4. Start app referral program
Currently, an app referral program is gaining a huge attraction of users, recently many apps have applied this strategy and have increased their user base. In this program app owners may include a section that directs users to other apps. By directing users to other productivity app is compensated for referring new customers to related apps. Both Apple and Amazon are using this technique to offer affiliate programs for mobile app developers. Amazon permits Android developers to sell its merchandise through their app and share the profit, similarly
Apple’s Affiliate program allows iOS developers to earn money by connecting Apple Music and iTunes content in their app.
No matter what kind of mobile app you have created, marketing plan to successfully monetize your app should be given just as much consideration as creating a user-friendly platform.
If you have created convenient and repeatable in-app transactions, then the chances of a better app position will automatically increase and you can retain your users and generate lasting revenue.