How to Monetize your App: 6 Effective Strategies in 2023

Introduction

Mobile applications are emerging as a favorite tool for entrepreneurs. It is a business milestone as an app download reaches the 10K mark. Also, a big victory once over 1M downloads accompanied by 4+ ratings flaunts in the description box on an App store. It shows the app has extended its reach to the stated numbers. But the question remains the same how to monetize your app?

But it will not take a jiffy to turn excitement into anxiety if the application generates zero revenue with the rising audience count. As it picks up growth on Play Store or Apple App Store, it should start generating multi-figure revenue.

Else, developer charges on repairs and extra add-ons may make it a fairly expensive deal. In case you are scouting for some best strategies in 2023 for app monetization, you have landed on the right page. These are – 

6 Powerful Strategies To Get Most of the Application’s Earnings or Monetize Your App

These mobile app monetization strategies will speed up the revenue generation activities from your newly created mobile apps.

1. In-app Ads Model for Monetize App

One of the most common monetization alternatives for monetize your app suitable for almost all apps available on the app store is the in-app ads model. Also, these are the small image ads displayed around the dashboard of an app.

These images can be relevant or irrelevant to the mobile application’s niche as they may carry a visual of a brand or an advertising company. In-app ads can promise great revenue figures as it strategically shows advertising material to the user.

For example – Facebook Ads or Admob (by Google) are the best-suiting examples of In-app mobile ads.

These big companies retain a large amount of user data in their database. Then use them to serve the purpose of an advertiser and promise a publisher significant revenue figures.

One of the remarkable benefits of using in-App ads is that it lets you set advertisements as per your application’s layout. You can choose from –

•       Banner Ads
•       Native Ads
•       Video Ads
•       Interstitial Ads

But it’s worth noting that these ads are displayed on online applications only. If application content is being accessed offline more, expect less to no revenue.

Best Suiting for

The monetization strategy is best for gaming, online creative, chatting, educational niche, etc.

2. Paid App Model

The Paid app model for monetize your app is another lucrative opportunity for applications looking to strengthen their revenue profile. The monetization strategy is currently the main revenue source of most applications you see on the app stores.

Applications following the paid app business models no longer serve free content to the audience. The app store doesn’t permit the audience to download the application once it is tagged PAID. Hence, it can call it opposite of the in-app ads.

Rather than putting an ad on their platform, the founder or developer of these apps charges a cost against installs. As per this monetization strategy, only that user can access your app who’s ready to pay the real cost of it.

Hence, only those applications should consider proceeding with this monetization strategy that has either created hype in the market or is business-specific applications and has no other alternative available on app stores.

Best Suiting for

The monetization strategy is best for unique gaming, business, newspaper, educational course applications, etc.

3. Freemium & In-App Purchase Model

Freemium & an In-app purchase model can be the best source to fetch huge revenue for a game app. The monetization strategies have long been deployed by many gaming or addictive apps.

But to be honest, almost every gaming app is currently deploying this monetization strategy into their application. After all, it has two great reasons for a proper explanation.

The first is some gaming applications create a hook through their content, and the third-party ad serving can ruin this connection and relationship built with the user.

The second reason is revenue. Most gaming app has targeted audience below 18 – and since third-party advertisers scout for 18+ audiences in most scenarios, a game may carry less earning potential by going with in-app ad models.

This is where the Freemium & In-app purchase monetization model comes to their rescue. You let the user download and use your application for free, and as it turns out addictive, you let him/her decide whether they are interested in purchasing add-ons or extra offers from the in-app collections. 

Best Suiting for

The monetization strategy is best for addictive apps, addictive gaming apps, business apps, chatting apps, online course apps, news apps, etc. 

4. Subscription model

Not a new thing that you are completely unaware of. The subscription model is on the boom nowadays. Even the monetization strategy has grown into a mainstream revenue source for most businesses online.

A boost to this model is driven by app marketing, and if you are dreaming of it, then you must be ready to pour extensive capital into marketing your application. Else, expect no downloads. 

It is because of competition that’s on the rise among subscription-based applications. Such as, Disney+Hotstar, Amazon Prime, and Netflix are some of the most popular examples here.

These OTT-based applications generate massive revenue via a subscription-based model as they are popular. People are fans of the content served in these applications and happily purchase a monthly or yearly subscription at varied plans to watch their favorite content.

Best Suiting for

The monetization strategy is best for OTT apps, Video Apps, online course applications, etc.

5. Sponsors and Partnerships

You created an app and applied for an advertising program. But if it isn’t fulfilling your revenue goals, try to make more with sponsors and a partnership model.

Through this monetization strategy, you merge the features and helpfulness of the partner’s application in your app or vice-versa to access shared benefits through the corporation. Furthermore, you can build a side hustle in addition to your in-app ads or subscription-based business model through sponsorships.

If the application is around a specific niche or becomes a brand, then the monetization strategy will work. If it has become a brand, you can charge any amount from the sponsors. 

Best Suiting for

The monetization strategy is best for gaming apps, creative tool apps, parenting apps, lifestyle apps, chatting apps, educational applications, etc.

6. White-labeling Model

White labeling is one of the unique monetization models of this era. In the model, a company, developer, or individual developed the application. But the other company or brand will take ownership as they paid for the application.

However, the repairs, functioning, and accountability for upgrading and editing would be entirely on the original developer. Still, all credits are given to the brand that has acquired the application through a considerable investment via a contract, legally through a dealing process. 

Best Suiting for

The monetization strategy is best for almost all applications. 

Conclusion

So these are some of the finest app monetization strategies that are about to add more to your wealth from applications in 2023. Choose your favorite, and go ahead!