ICT Clinic (Punch Newspaper)

Monetising Mobile Applications [ICT Clinic]

Technology has enabled a number of businesses go online with many making money from the sale of their products and services.

There is no denying the fact that a great deal of tech startups are springing up, hoping to make money from their apps. With a lot of online payment options available online, many of them are finding it very easy to conduct their business and receive payments from clients and customers without physical contact.

In the same vein, some tech start ups that have developed mobile based solutions i.e. mobile applications are also seeking possible ways to monetise them and interestingly, more and more people are investing in mobile apps while others are planning to jump into the train. But the question is: how many of them are aware of the various monetisation strategies that are available?

Monetising an app is one of the biggest challenges mobile app owners will have to face as the number of apps performing similar functions keeps increasing by the day.

Today’s piece will help shed more light on this subject and better inform our readers.

Possible monetisation strategies

One of the most popular monetisation strategies you can adopt is the advertising-based strategy. This entails the offering of a free download to the users of the app, but then accepting paid adverts on the app to make some money through the respective app stores. Facebook is an ideal example of this. Sometimes, making money is dependent completely on advertising, but most of the time, it employs a mixed monetisation strategy using a freemium model as bait.

This strategy will be ideal if:

  • you do not have a plan to generate income directly from end users;
  • the nature of your app can lead to consistent visits, a lot of users and long sessions;
  • you need to gather preference data about users.

Offering Freemium app services with a view to convincing users to take up paid (premium) services in future is another monetisation strategy.

In a freemium mobile app service, the users can get started for free. A freemium app, however, includes some additional features that customers have to pay for, to use. This means that some particular functionalities are only available to paying customers.

The goal of this technique is to accumulate users until they realise the benefit of the app and are willing to pay for additional features. These additional functionalities have to be enticingly good enough for the current users of the freemium to enable them to move to the paid version of the app. — Finish Reading on the Punch Website

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