Marketing News

How to Make Money With Your App: 5 Monetization Strategies To Try

Opinions expressed by Entrepreneur contributors are their own.

When launching an app, ensure you are testing its monetization well. Only well-tested products and apps will give you the boost you need to scale your revenue.

Apart from updating app features and overall UI, it’s essential to focus on the app’s money-making spot – the paywall. 80% of purchases happen when the user sees the paywall for the first time. Hence it’s essential to make the most out of this screen. However, making changes based on blind guessing may be dangerous. If you desire to improve your conversion to purchases, there’s only one way to tread carefully: A/B testing. In a nutshell: A/B testing is a type of experiment used to split test changes on a paywall within the same app version.

By testing different elements step-by-step, you will launch a much more profitable and engaging paywall. Here are some insights on components you must experiment with to increase your app’s revenue.

Related: 4 Retention Lessons For a Successful Monetization Strategy

1. Subscription types

It’s always a good idea to experiment with subscription plans to find what works best for your users:

  • The weekly subscription is affordable and convenient, as people may be willing to pay less weekly for an app they use daily.
  • The monthly subscription is the most common plan, which allows users to pay an average of $5-10 per month and gives developers the potential for long-term subscription renewals.
  • The 6-month subscription is a good compromise between the monthly and annual plans. It may generate much more profit than the annual ones if used right.
  • Finally, the annual subscription can provide developers with a steady revenue flow for a whole year. However, the yearly subscribers are also far more tricky to analyze.

Keep in mind that there may be different service tiers that will warrant different subscription types. Your testing should consider this to avoid compromising revenue opportunities by applying a blanket policy for a situation that needs a more nuanced approach.

Related: Why You Should Use a Subscription Business Model

2. Number of subscriptions

It’s also crucial to understand how many offers you need on your paywall, as they will affect the app’s economy:

  • 1 Product. The paywall with this pricing plan usually looks clean, provides a list of advantages, and doesn’t require users to decide which plan to choose. However, it can be tough to understand your subscribers’ paying capacity.
  • 2 Products. This pricing plan offers more freedom to experiment and allows users to mix any pricing options from weekly to lifetime. You must understand the user’s psychology.
  • 3 Products. It provides broad possibilities for experiments and allows for the anchoring we mentioned earlier. It also provides a convenient structure that helps to learn more about user behavior.

It’s crucial to consider your business model: If you have several options, think carefully about which ones you want to display. This in itself might be a test you wish to run.

Related: How to Identify and Launch a Subscription Model in Your Existing Business

3. Pricing

Be sure that you’re operating within average numbers and that the price does not scare your potential users away. Here is an overview of average prices for mobile subscriptions for 2021-22 based on the data from the major markets, such as the US, UK, EU, Turkey, etc.:

  1. One week – $6 (iOS) and $5 (Android)

  2. One month – $6 (iOS) and $5 (Android)

  3. Three months – $27 (iOS) and $11 (Android)

  4. Six months – $26 (iOS) and $22 (Android)

  5. One year – $27 (iOS) and $18 (Android)

There are also different tricks in pricing. If you want users to choose the annual subscriptions, then try anchoring it, which means presenting other subscription options on your paywall in a less appealing way. Also, consider pricing psychology, meaning that prices ending in .99 almost always signal a great deal.

Related: Ways To Determine The Best Pricing Model For Your App

4. Introductory offers

Intro offers work as a discount designed to convince a user to purchase a subscription at full price with a delayed payment option. There are three of them:

  • The free trial allows potential subscribers to use the app for free for a limited time before purchasing it.
  • Pay-as-you-go offers a discounted subscription for a couple of months, but a user should pay the original amount after the intro period.
  • Pay upfront offers a one-time discount followed by full-price periods.

Know that people love discounts, so ensure to properly promote the value you are giving away with your offer. If people know they are getting a deal, they are much more likely to buy.

5. Design elements and copy

A combination of design elements should be presented in any paywall to cover all the requests of potential users: imagery, copy, pricing options, purchase button, and terms of use.

Imagery must be directly related to the app, and the copy should be straightforward and honest when listing the benefits of an app—present pricing options as badges that contain the subscription info. The purchase button must be catchy and not misleading. Lastly, add links to terms of use, privacy policy, and perhaps the restore purchase button at the bottom to take up less usable space.

In conclusion, remember these simple rules to keep your app fresh and lucrative:

  • choose meaningful prices and introductory offers that match the target audience’s paying capabilities;
  • create an appropriate structure with a reasonable number of products;
  • use attractive imagery;
  • ensure that the user understands the value and pricing clearly;
  • never stop experimenting.

Products You May Like

Articles You May Like

Chris Do of The Futur on his 1 Billion Mission
Get Customers to Fall in Love With Your Company With These 3 Disney Marketing Tactics
Are You Using the Most Powerful Marketing Tool on the Planet? Ashley Kirkwood Shows You How.
2023 Salary & Career guide: How much search marketers make
Are You Also A Glass Child? Decoding TikTok’s New Trend

Leave a Reply

Your email address will not be published. Required fields are marked *