If you’ve developed an app, the best way to way to earn from it is to monetize it. Other than creating a subscription model, there are many ways you can monetize your app. In today’s blog, we’ll look at 7 different ways to do so, including the subscription model. We’ll explore: 

The 7 Ways to Monetize an App Are:

1. The Subscription Model

2. In-App Purchases

3. Affiliate Marketing

4. Sponsorships

5. Hybrid Monetization

6. Paid Downloads

7. In-App Advertising

Now, let’s dive into each one of them. 

Subscription Model – Easy Ways to Monetize an App

One of the most common ways to monetize an app is with the help of a subscription model. The subscription models are made tier-wise, with each tier offering varying levels of benefits and features. 

For example, if you’re creating a fitness app, you can set three subscription models, such as Basic, Intermediate, and Advanced. 

1. The Basic plan can be free and provide access to features such as exercises for each body part.  

2. The Intermediate plan can provide predetermined work routines as well and costs $20 per month.

3. The Advanced plan can cost $30 per month and provides access to the features in the basic and intermediate plans, as well as a calorie counter, customized meal plans, and BMI(Body Mass Index) calculator. 

By doing this, customers can choose the subscription model, depending on their needs. 

In-app purchases – Usual Ways to Monetize an App

Keeping in-app purchases is another good way to monetize an app. In-app purchases allow you to buy virtual goods, upgrades, or consume items within your app. In-app purchases are a great feature for games, which allows you to unlock features and new game levels. 

A good example of in-app purchases would be Candy Crush. 

When you play the game, you’re provided with a set of free lives that you can use during a level. However, if you’re unable to complete the level and use all your lives, you’ll have to purchase additional lives.

But that’s not all. You can also buy other things in Candy Crush such as: 

1. Moves to complete the level if you have run out of them. 

2. Gold bars act as a virtual currency and help you purchase various game items. 

3. Boosters and hammers provide you with special abilities during the game. 

Affiliate Marketing – Commission-Based Monetization

Another way to monetize an app is with the help of an affiliate marketing program. In an affiliate marketing program, you partner your app with other companies to promote their products. 

To explain this, let’s continue with our fitness app example. Your app could also include a section for sportswear. In the sportswear section, you can partner with a reputable sportswear brand and stock only their items. As a reward for each sale, you’ll get a slice of the amount as a commission. 

You can also include the link to the affiliate website in the recommended gear section. When a customer visits that link through your app, you can earn a commission for the sale. 

Sponsorships – Tricky Monetization

Another way of app monetization is through sponsorships. To gain a sponsorship, you need to align with a brand that is similar to your app’s audience and content. Types  of in-app sponsorships include: 

1. In-app branding, where the sponsor gets their logo on certain places in the app, depending on their sponsorship package, mostly on the home screen, or on the loading screen. 

2. Integrated features, which can be created by understanding between the sponsor and your app. For example, your fitness app might have a section for workout routines designed by the sponsor.

3. Content sponsorship, where the sponsor may write a specific section within the app, or write a small piece such as a weekly article. 

Hybrid Monetization – Simple Way of Monetization

Hybrid monetization is one of the most common ways to monetize an app. In hybrid monetization, you’re not putting all your eggs in one basket. Instead, you’re monetizing your app through various methods. Here’s what you can do: 

1. IAP+IAA( In-app purchases + In-app advertising): You can add purchasables to your app, and also include in-app adverts. This method is suitable if your app is free. For free users, you can earn through adverts, whereas for users who pay, you can earn through purchaseables.

2. Subscriptions +IAPs: This method is suitable for apps that are providing value. A subscription provides access to basic services, whereas in-app purchases provide access to advanced features. This model is suitable for gaming apps. 

3. Freemium with optional ads: This app provides the full version of the app but with ads. To turn off the ads, the user must purchase the premium version of the app. 

Hybrid monetization provides numerous benefits, such as: 

1. Increased revenue from both free and paying users.

2. A larger user base by capturing both free and premium users. 

3. Improved user experiences as carefully placed ads don’t interrupt. 

The best example of hybrid mobile app monetization is YouTube. 

Paid Downloads – Old-Fashioned Method

Although this is one of the most old-fashioned ways to monetize an app, doing this is a great idea for apps that target a certain niche. The benefits of paid download apps are: 

1. Higher engagement, as users are likely to invest more in something they have paid for. 

2. Reduced competition, as there are fewer players in the paid app market. 

3. A higher source of revenue, as each user pays when they download the app.

In-App Advertising – Critical Monetization Method

In this app monetization model, you carefully place ads in different parts of the app in a way that doesn’t hurt the user experience. Users can be rewarded for watching a short video ad. 

The benefits of in-app advertising are: 

1. It is a good source of monetization that doesn’t hurt the user experience. 

2. It creates a larger user base because a free app usually attracts more audience.

3. Because of the large audience base, you can create an affiliate program for multiple ads, allowing you to get paid once the user makes a purchase from the ad on your app. 

So, these are the 7 models for app monetization. Now, time for the ending note. 

Wrapping Up

There are many ways to monetize your app beyond the subscription model. By considering your target audience and the type of app you’ve created, you can choose the best monetization strategy or even a combination of strategies (hybrid model) to maximize your revenue. Remember, the key is to provide a valuable experience to your users,  whether they choose the free or paid version of your app.