Monetization techniques for mobile application


Majority of people want to become entrepreneurs..When you ask people what they want to do they would all end up saying business, startups, etc..In order to have a profitable  business what exactly is needed? An idea. True fact! does idea alone is sufficient to make the business profitable. There are several other factors such as effective outreach methodologies, publicity and revenue are most essential for an organization to survive in this competitive world.

monetization-techniques-1-1024x734With the tremendous growth of mobile phones many companies have started to invest in mobile advertising by creating mobile application. This technique increases the visibility to a wider audience but visibility alone does not guarantee good returns, ‘Download’ is the key factor. Almost 54% of the app revenue is claimed by only 2% of the app developers. Now let us have a look at six smart app monetization techniques to ensure the profitability of the application.

In App Adverstising

indexIn this sort of monetizing technique the download happens almost free.The primary goal of this technique is to create a large user database. On later stage information from this database are stored and app publisher pays a monetary sum for publishing targeted advertisements. This is the most widely used technique to attract the customers. The main reason behind the success of this method is that people attention can be gained easily by presenting things for free.

No premium

iphone_monetizationIn app advertising technique allows the customer to ‘use and try’ the services offered before buying the product. However,  the additional advantage over this approach is that there is no download cost involved in it. At the same time only limited features are available for free. Some of the higher features are made available on payment. The main aim of this approach is to accumulate and engage the application users until they are convinced to pay for the upgrade and enjoy all the features.

In-app purchase

In app purchase method works exactly like a supermarket. Here many companies will showcase their products. Upon successful virtual or physical purchase done by the customer , the developer is offered some percentage of the profit. One of the main advantage is that the users save a lot of time and easily get what they want.

Paid applications

This paid app technique generates direct income from the customer on app purchase. To download the required application the user has to pay a certain fee. Major factor associated with this is that the application should be creatively designed to arouse the interest in the people and invoke them into purchasing more apps.


Paywall is almost similar method to free premium model. Here , instead of the product features the actual content is gated and prevented from users view. The users are only allowed to see a predetermined content and they need to pay certain amount of money to get complete access to the set of information. This iOS app monetization method not only allows the users to ‘Judge book by the cover’ but also to experiment with it.

Promotion and localization of application

App promotion involves the use of several social platforms like facebook, twitter, etc.. to sell the application. Localization refers to the app reach across borders and monetize international traffic by offering region- specific content. This monetization technique is completely useful ,you can either increase the cost or the total number of customers.

All these above mentioned techniques are some of the many ways to advertise  the mobile application and to survive in this competitive business. An app developer can customize and use a combination of them to create a successful business. Now , that’s what we call more than just an idea.

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About Author

Madhumitha Srinivas

I am an avid reader. My ultimate goal is to convey complex information in a much more simple and interesting form.

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