Selecting Your Monetization Strategy
If your goal is to build and grow revenue through your app, selecting the right monetization strategy will maximize your opportunity. Your primary monetization model will act as a springboard for the entire development process and will affect decisions at every stage in this journey. From nailing down your app’s core value to making user experience decisions, monetization will come into play.
But like all stages of the app marketing lifecycle, monetization is a constantly evolving process that you will need to adjust time and time again, adding and subtracting elements and pivoting as necessary.
Tinder, the dating app, rolled out a series of monetization styles over its lifecycle. At first, it was completely free but then later added a paid version, Tinder Plus, which added features and removed ads. In contrast, the popular game Ghost Blows Out the Light started as a paidmium app then switched to a freemium model. In both cases, changes were implemented to create a balance between attracting new users and earning revenue.
When thinking about the monetization models we reviewed in the last section, you’ll want to see how the following considerations align with your goals.
Core Value and Critical Event
What is the primary identity of your app? What is the goal and what does your brand look and sound like? Which monetization strategy will bring these concepts to life, and which strategy will your users respond to best?
Above all, stay focused on your goals. Some monetization strategies will work well for others but may not fit your target users or the features of your app.
Budget and Resources
What are your capabilities in terms of resources and development? For example, in-app purchases require additional development, resources and maintenance. If you are an earlier-stage company, and direct sales transactions are not a core value proposition, it might make sense to roll out more complex monetization strategies at a later stage.
Now we’ll look at the specifics of monetizing your app’s users.
Read on to take a deeper look at the specifics of monetizing your app’s users.