Application Monetization – 5 Models To Generate Revenue

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There are many different goals and purposes in mind when planning the creation of a mobile app, such as: creating your brand and audience base, adding additional communication method to target users, creating a platform to promote your company, expanding your business model or profit. For that it will be necessary to monetize applications, regardless of the purpose of the app! Contact today our Ad Revenue experts at Postindustria, they will guide you in the best possible way.

See the top 5 app monetization models

1. Paid model

Choosing a paid model means establishing a price tag for the application. Therefore, access to the app will be released upon payment confirmation, as it is a more direct monetization model. That is, the financial return will be more evident, as it is a metric for analyzing engagement in your app.

The secret of this monetization model is knowing how to position your application well so that it can be perceived by users. 

2. In-app purchases

In this model, the application can be downloaded for free and users can use it as much as they want without any payment obligation, except when purchasing the products. The sale can be used for the app’s own resources or online stores such as e-commerce or marketplaces.

The Pokémon Go game is an example of this. The user flow is not interfered at any time, as the app does not block any of its actions and resources. 

3. Freemium (free + Premium)

In the freemium model, you monetize the app by mixing free and paid resources, allowing users to access all the app’s resources in a given period. After it, the user will need to buy the app to resume use.

To do this effectively, you need to show users the value of the app for the premium offering to reach it effectively. The idea is to involve the user until he is willing to pay for the full, expanded or improved version of the application.

4. In-app advertising

This is the app monetization model that appears most often in free apps. With it, users will see ads while using the application, generating revenue for each advertising impression and clicks.

There are two main ways of displaying the ads: they appear after a period within the app or a banner in the header or footer of the layout.

5. Paywalls

Paywalls are quite similar to the freemium model, but are used for content. This model allows users to access a part of the content for free to a certain extent, requesting registration and payment to obtain full access to the content.

This is best for services that plan to offer live information feed, as well as newspapers and magazines. However, it can take some time to gain popularity and confidence in the content.