From the day when smartphones first made their appearance to this date, their usage and popularity have only increased. Now, their functions as well as features are also expanding.

In this regard, the apps on these devices are playing an important role. They are extremely useful in daily life. But what about those app developers who build these apps for users?

Well, if a user meets specific requirements through an app, the app developer also gets to earn some money from it. If you are an app developer and are wondering how this happens, then don't worry because you are at the right place.

Here, we will discuss how to monetize an app and earn money from your app. So, without any further delays, let's dive in.

What Is Mobile Application Monetization?

32% of small businesses already have a mobile app, and 42% plan to build one in the future. On the other hand, 26% of small businesses are unlikely ever to release one.

This data shows the popularity of mobile apps among smartphone users and why businesses are turning their heads towards apps. That is also one of the major reasons why we have more apps than ever.

We generally think that apps are for our usage; at least we know that app developers also earn money from the apps they make. Yes, that is right, and that is why we should know how to monetize an app.

What happens with in-app monetization is that an app developer or a business with an app can make money through it. This is called mobile application monetization, where businesses and app developers make money through their apps.

There are various methods by which one can monetize mobile apps. As an app developer, you can choose any one of them or more than one.

Why You Should Know How to Monetize an App?

If we are going to discuss how to monetize an app, we should also discuss why it is important in the first place. There are several reasons behind the need to monetize an app:

• If you research free and paid apps, then you will know that over the years, the number of paid apps has decreased.

• Earlier, both Google and Apple Stores had numerous paid apps that required payment for downloading. However, as these app stores became more user-friendly, they started to offer more free apps, which users liked more.

• Hence, over the years, people have used more free apps than paid apps. So, now app developers have to look out for other ways to earn money from their apps.

• Also, the use of smartphones has increased, and they have become an inseparable part of our daily lives. So, now app developers can provide them with more versatile apps for their needs.

• You can see this thing for yourself; if you need a payment, then you only have so many options. So clearly, the number of app users as well as app developers has increased.

Thus, the need for app monetization has increased with time. We now have so many app monetization strategies to choose from.

Effective Ways to Monetize App

Next, in our guide to how to monetize an app are the app monetization methods that you can choose from. Whether you are an app developer or a small business, you want to generate more money through your app. You can use these methods alike after analyzing your app type and your customer or user base.

In-App Advertising

The most common method of app monetization is in-app advertising. Since the first smartphone came into our hands, the picture of advertisements has changed a lot.

Now, companies and marketers can display their ads on the go, anytime and anywhere. Hence, you will find many clients with advertisements for your app if it has a good number of downloads.

This method is one of the most popular and common app monetization strategies. It can drive significant results, like increased revenue. However, if it's too much, then it can irritate your users too.

There are various types of in-app advertisements that you can choose from, according to your app and users. They are as follows:

• Banner Ads: In banner ads, you provide a space of your app layout to your clients for their advertisements.

• Native Ads: In native ads, you display ads to your users through UI components, or we can say that these are native to the platform.

• Video Ads: In video ads, you embed a video advertisement in your app that is clickable. So, every time your users tap on the video ad, they will be redirected to another app or website.

• Interstitial Ads: These are full-screen ads that will cover the interface of your app. These are placed at natural transition points or during a pause between activities by users.

In-App Purchases

In-app purchases are also important when you are understanding how to monetize an app. Just like other ways to monetize your app, in-app purchases are also a good option.

With this method, you can provide a free app to users but keep some features as paid features. For example, if you have a gaming app, you can make extra moves or game life pay.

Also, you can put some other features in-game weapons, gear, or other customizable items as paid. If your users want to have more, they have to purchase these items. This way, you can make money through your app.

App Transaction Fees

App transaction fees are an excellent way to earn some money from your app. However, it is only applicable when you provide payment services through your app.

There are plenty of apps available out there that provide payment activities to their users. First, they offer some promo codes, discounts, and coupons to their users to encourage their payments.

After some time, when a large number of users use their apps, they can charge them for their transactions. Also, the transaction fees need to be balanced so that they can feel overwhelming to your app users.

Otherwise, they will switch to other payment apps offering lower transaction fees than yours. So, keep this in mind while choosing the app transaction fee method for your app monetization.

Downloading Fee

You can monetize your app by charging users for app downloads. However, before that, you have to ensure that the downloadable content you are offering is relevant and popular.

Also, it is not offered for free by other apps, and the content is exclusive. Only when you provide your users with high-quality, downloadable content will they pay for it.

App Subscription

One way to get consistent revenue from your app is through app subscriptions. A famous example is Netflix, which has different subscription plans for different types of users. In return, it offers them exclusive and high-quality content.

The app subscription can be monthly or annual, or you can provide both to your users. If you are offering subscriptions to your users, you have to keep in mind two things:

First, watch your competitors and know their pricing plans. You can't make your subscription so expensive that most people can't afford it. And it's not so cheap that users think that you offer low-quality content.

Second, understand the nature of the demographic that is consuming your content. Whether they are college-going kids, adults with jobs, homemakers, or senior citizens,. Because it can inform you of their economic condition and how much they can pay for your app subscription.

Affiliate Marketing for App

Affiliate marketing for an app works in the same manner as usual. What happens in affiliate marketing is that you promote some products or brands to your followers.

The same happens in affiliate marketing for apps. Through your app, you convince your app users to buy other products and apps. The companies that approach you, as well as how much they agree to pay you, depend on your app download.

If you have a broad user base for your app, you can earn a decent amount of money through affiliate marketing. There are now two ways in which you can use affiliate marketing for your app.

First, you can form a partnership with companies to sell their products. As there are numerous brands available out there for affiliate marketing, finding ones for your app will not be difficult.

The second way is to use affiliate ads to convince your app users to download other apps. For example, you may have a gaming app, but you can use ads for other shopping apps.

Freemium Model

The freemium model of app monetization is a perfect blend of free and premium features. To attract users to your app, you can offer them some free features first.

Now, with free features, you can either use in-app ads or provide limited free features. To prevent in-app purchases or to get premium features, your app users will pay.

FAQs

How can I monetize my app?

There are many ways in which you can monetize your app. You can display different kinds of ads on your app and use transactional fees, download fees, or paid apps.

Can I monetize my Google app?

Whether it's a Google app or an Apple app, they have almost the same monetizing methods. However, their users and clients can be different, but the app monetization methods are the same for Google apps.

Does Google pay money for app downloads?

No, Google doesn't pay app developers or businesses for its apps. You can generate money through your app through app monetization.

Can I make money from my app for free?

Well, it depends on your app and how you plan to make money from it. However, in most cases, you don't need to pay for monetization. So, the cost of app development will only occur if you choose ads to monetize the app.

How much can an Android app pay per day?

There is no fixed rate for the amount of money that one can generate from an Android per day. It depends on the app, its user base, and the method of app monetization its developer has chosen. The average rate can be some odd $4–5 per day.

Conclusion

In this article, we have seen what app monetization is, why you should opt for it, and how to monetize your app. However, there are certain points you need to ponder before proceeding with app monetization.

First of all, app monetization depends on whether you are an app developer or a small business looking to generate more revenue. This single fact can bring significant change to your app monetization strategy. Because if you are an app developer, you can advertise any company's ads. However, if you are a business, then you can't monetize your competitors' ads.

Also, app developers have to make money through their apps, but as a business, you have a customer base, too. Even if it's small, it matters, and if you choose irrelevant ads, it can reduce your customer base.

Secondly, while monetizing your app, you have to consider your business, its customers, and the ads you are showing. If you are an app developer, then you can display any ad. However, if you are a business, then your ads must be relevant to your customers and help them.

Also, before displaying any ads on your app, as a business, you first have to think about customers. Are they your loyal customers? What are their pain points or preferences? Do they really need the ads you are displaying?

These are some important questions you must answer before monetizing your app through ads. Also, when you decide on your app monetization method, broaden your horizons and think about other methods, too. Like affiliate marketing, a download fee, or a transactional fee, and see what method would be best. If you are a business, then you can search for your competitors and see how they are monetizing their apps. Thus, in this way, you will get data to support your decision. Also, you will know how to monetize an app efficiently.