Mobile App Monetization

Monetization is the conversion of an object or specific source into money, generating revenue from the production of that object. In the world of mobile applications, mobile app monetization refers to the capability of turning a profit from a mobile app. More specifically, mobile app monetization is the ability to turn the app into money without charging customers for it.

How is this possible?

Think about the current mobile app market. Chances are, most of the applications that pop up on a random market search will be free of charge to the user. Most common apps that are found across millions of mobile devices have all been free, and yet have been monetized to turn a hefty profit for the developers of those apps.

There are a variety of ways that a mobile app developer can monetize their mobile app, and the most common ventures are listed below.

Selling Mobile Apps to Third Parties

Third party websites, specifically advertisers that like to collect user data, will be able to buy a mobile app and pay for the user results that are achieved from it. There is a slight risk in going with this route, as transferring a mobile app to a third party site may not provide the security protections that it needs.

Offering Premium Upgrades

There is a common route that many developers go with that is colloquially referred to as the “freemium model”. This basic concept of the freemium model is that it allows users to download the application for free, with the option of paying to upgrade for a more premium version of the application. The free version typically comes with basic tools that still make the app functional, but with incentives to pay for the “full” version with access to better features at a quicker rate. A lot of mobile games go with this option.

Providing In-App Purchases

Many popular mobile games allow the customer to download and play the game for free, but there may be extra add-ons and features that the user will need to pay for in order to have access to them. For example, a castle building game may allow a user to build up to a level 9 castle for free, but will require the player to purchase the extra resources or permissions needed to upgrade to a level 10 castle.

Free Trials

Free trials are another way to establish mobile app monetization. The developer can offer the app for free for a limited amount of time, and will then charge the customer for use after the trail time has expired. This is a less popular model, but it is still seen around with various applications.

Things to Consider

When considering mobile app monetization, there are some key pillars to keep in mind:

• The niche market – what kind of monetization tactics do the other apps in your field use?
• Demands of the customers – what are customers looking for in an app? What are they willing to pay for? What are they not willing to pay for?

All in all, mobile app monetization is a widely successful and growing field that can offer many options and opportunities for you to turn a profit from a free mobile application.