Do you have an amazing idea for a new Android app, but aren’t sure how you should monetize it? Keep reading to find out about 4 top ways to make money from Android apps.
A popular app that is frequently downloaded can create a significant amount of recurring revenue.
There are many clever ways to make your mobile app work for you.
Some of the most popular monetizing strategies include free with ads, freemium, subscription-based, and pay-to-win.
Read on to learn more about how to earn money from Android apps.
1. Free With Ads
This is probably the simplest approach, but it’s not always the most profitable.
Using this strategy, you offer your app for free and get paid when users click on the advertisements they see within the app.
This strategy earns income based on click-through-rates (CTR) — the percentage of ads that users click divided by the total number of ads displayed.
Most companies offer a few cents per click, making it difficult to earn significant money unless you have one of the top-performing apps.
A “freemium” app doesn’t cost anything to download but only offers limited features.
Users can experience the basics of the app but must pay for full functionality.
This may include incentives like exclusive content, additional storage, and other app upgrades.
This strategy works well because people are more willing to download an app that’s free.
If you provide a service they enjoy, they’re far more likely to upgrade, and that’s when you get paid.
Subscriptions are often overlooked as a monetization option, but they can be quite lucrative.
Both Apple and Android have reduced the fees they charge for subscription-based apps to 15 percent, down from the 30 percent they charge for most other types of monetized apps.
This makes it an attractive option for developers hoping to create a recurring revenue stream.
Statistics show that subscription-based apps are 200-300 percent more effective than paid downloads.
They also generate about 50 percent more revenue than those that offer in-app purchases.
Although in-app purchases are not new, the “pay-to-win” model is currently one of the most popular monetization strategies for game apps.
This is most common with games that are free to download and allow you to purchase additional gameplay, custom settings, and other options that give users an advantage over competitors playing the free version.
Although the game is free to play, users who enjoy playing often feel compelled to purchase the upgrades.
Niantic Inc., the developers of the incredibly popular app Pokemon Go, definitely know how to earn money from Android apps.
They recently updated the app to follow this strategy and it now grosses $2 million in revenues per day.
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