+49 30 258 143 174
+49 30 258 143 174
In this article we will NOT discuss the apps with the help of which you can earn small money (if you search for them, you will find some interesting apps here), but how you can do app monetization as an app publisher.
The structure of the App Monetization article:
First, a few success stories for inspiration:
This list could go on and on. There are thousands of companies and individual developers who made a fortune during the mobile gold rush. And many more will follow – maybe you will too…
… But back to reality. The two most important app stores (Apple’s and Google’s) each offer more than 1.3 million apps today. You will most likely find some app for every idea you can think of spontaneously. Most apps are so-called zombies: they don’t get downloads, reviews, or make money for developers.
The gold rush has attracted a few many amateurs who 1. don’t have an interesting idea of their own, 2. don’t have the technical know-how or experience needed, 3. don’t have enough budget to pay good developers and “growth hackers”, and 4. can’t do any marketing themselves. As a result, you can find a lot of useless apps in the App Store.
But even apps that have been well received by users haven’t made the money the developers expected. Here can the detailed figures to find such a story.
The mood among developers fluctuates between euphoria and gloomy anticipation that “the old days are over”. But is it really so? Is it even worth getting into app development anymore? The answer is “yes.”
Namely, app development is still worthwhile today for the following reasons:
All in all, it’s worth getting into app development if you:
Conclusion: Mobile business is becoming more mature and is subject to the same laws as other, traditional businesses. But growth and potential are immense – and so are the opportunities to earn money with apps!
So you’ve decided that you want to become an app developer after all. But how do you actually make money with apps? There are now numerous ways to app monetization. We’ll show you just a few of the main models for doing so.
The “self-evident” business model, which unfortunately is not so self-evident anymore lately. The idea is quite simple: downloading an app costs something, e.g. 1 or 2 euros.
Suitable mainly for apps with a clear benefit for users, especially professionals, business people, etc., which at the same time have little competition.
Admob, iAD etc. Similar in structure to Adsense. So you show your app visitors banners in various forms, users click on them and are redirected to another app or website. You get credited money for each click. You can also count various mobile affiliate networks to this category. You register there as a publisher and make your app available for the publication of advertising.
To increase the number of impressions and click-through rate, you need to greatly increase the amount of ads in the app. This, of course, lowers the satisfaction with your product.
You are selling an intangible asset in the app.
The so-called paywall model works similarly to IAP. This is nothing more than a subscription, where users pay money at certain intervals to be able to use the app’s content. An example of this would be the app Umano.
Zalando’s app, for example, is nothing more than a mobile commerce app that lets you buy clothes just as you do on the website.
Offline effort, the model doesn’t run on its own (like advertising or IAP), you have to build offline logistics.
Just like in the web area, you can do app monetization with affiliate marketing as well. You sign up with one of the affiliate networks (or many), register for various affiliate programs and list the products in the app. Users click on the products and are redirected to third-party stores. If the users buy something in these stores, you get your commission. Examples of such apps: MyBestBrand, Drezzoo
Tiresome to register with many vendors and maintain product lists.
Another way to app monetization. Here, as a publisher/developer of the app, you integrate the content or banner ads from other providers and collect the money directly from the advertisers. For example, as a diet app provider, you publish the news, promos, banners or content from a “healthy food” chain. Example: Nutrino
These are the main ways to do app monetization and make money with it. But what strategies can you use to put this knowledge to practical use?
A plague for the app stores, but at the same time a good way to quickly build up a whole fleet of apps and ensure a constant flow of money.
App reskinning means nothing more than releasing an existing app (yours or a third-party app whose source code you bought) over and over again under different names and with marginal adjustments. You’ve probably often wondered where all those “flappy” apps come from. This is one of the best examples of app reskinning. Someone created an app that did well. Someone copied that idea. Then another developer released the source code of a similar app for sale, and as a result, there are dozens of flappy apps available for download today.
Learn more about reskinning here and here.
Mobile is for web what web was for offline in the 90s: if you didn’t want to be there, you lost! In the same way, every eCommerce operator MUST consider how to deal with the mobile trend. Many leading eCommerce companies have already developed their own mobile strategy, many are in the process, some are lagging behind and saving money in the wrong place (more on app development costs and here our app cost calculator).
Of course, this strategy is only relevant for those who already have an existing off- or online business. For those individuals or companies, a great new opportunity is open to enter new markets and reach new customer bases.
But the big money lies elsewhere: Tinder, Snapchat, Instagram, WhatsApp… All of these apps have a few things in common:
How you develop such apps and how you get VC funds is another story and is beyond the scope of this article. But I would like to refer you to some inspiring articles: to WhatsApp, an interesting blog about IT trends and a helpful read (disclaimer: these are NOT affiliate links!).
Despite a certain “app fatigue” among consumers, mobile development and mobile marketing is still a rapidly growing market. The initial euphoria may be over, but the new Facebooks, WhatsApps and Snapchats are certainly waiting in the wings! With a smart strategy and the choice of a suitable app monetization form, you can still earn good money with mobile apps in the coming years.
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