Most mobile app startups fail due to a lack of monetization strategy. While their apps generate a lot of downloads, they’re unable to convert them due to ineffective monetization pathways. Here are some common monetization mistakes mobile app startups make:
Mistakes of App Monetization
Only One Monetization Method
Having just one monetization strategy not only cuts down on your revenue potential but also increases inconvenience for users. For example, if you solely rely on in-app ads, users will be frustrated as there is no option to pay to remove them. Here, a hybrid strategy is effective, where you provide a premium subscription to your app with no ads.
Excessive Promotion of In-App Purchases
While you’ve got to occasionally remind users to purchase something in-app or subscribe, overwhelming them with in-app purchases is not good either. This will annoy users, and they will end up switching to another app. Remember, you’ve got competitors as well. Strike a balance between an engaging user experience and promotions.
Excessive & Low-Quality Ads
Always keep in mind that people download your app to use it for its intended purpose and not to watch ads. If users are bombarded with ads at every step, they’ll rage quit your app. Also, the quality of the ads is crucial. Ensure that the ads achieve Google Policy Compliance in order to not cause a violation.
Now let’s look at smart ways to monetize your mobile app.
5 Mobile App Monetization Strategies
In-App Ads
In-app ads are highly effective at keeping your app free while still generating revenue. If your app has or is expecting to have a large user base, in-app advertising is a great strategy to implement. The more users you have, the more revenue you’ll generate.
As you already know the wrong way to run ads in your app, let’s look at the correct way. Keep your ads restricted to a small area of the app. This could be a banner at the top or bottom. Avoid showing full-screen apps, as they ruin the user experience.
If you want to show full-screen ads, implement them in a way that the user has the choice to watch them or not. You can do this by rewarding the users with some points if they choose to watch the ad.
Freemium Model
This is another effective way to provide your app for free and still generate revenue. The big idea here is to give more to get more. Provide a free version of your app with limited features, and create subscriptions that unlock the rest of the features. You can also implement a one-time in-app purchase that unlocks the complete app. Both ways are effective.
In the freemium model, users will be able to enjoy the basic features of your app for free while you entice them with premium subscriptions.
In-App Purchases
In this model, you provide products, services, or certain virtual points as in-app purchases. Once again, the users can use the app for free while having the option to purchase what they want. The freedom to purchase according to preferences is the best part of this strategy. Users can make purchases that suit their budget and requirements.
Subscription Model
If you want to generate a constant stream of revenue, the subscription model is best for you. Here, you create a single or multiple subscriptions at increasing price rates. The subscriptions have to provide additional features that are proportional to their price. The best part is that users can choose the subscription that fits their budget, and you don’t have to leave anyone out.
Mixed Strategy
As we said earlier, just relying on one strategy is not going to cut it. This is where you can implement a mix of two or more strategies. For example, you can have a free version of your app that shows ads along with a premium subscription without any ads.
By diversifying your revenue streams, you are not putting all eggs in one basket. Having multiple options allows users to choose the experience that best suits their preferences.
Get Your App Developed by WDI
As a leading mobile app development company, WDI has developed multiple apps with robust monetization streams. We’ve helped hundreds of startups actualize their ideas and generate revenue, kickstarting their businesses. Allow us to guide you with mobile app monetization.
Talk to our monetization experts to learn how we can enhance your mobile app.
