Published on February 12th, 2019 | by Jose Vasquez0
How to Monetize an App in Your Startup Tech Company
You may have a great app idea, but how are you going to monetize it?
Every day, millions of people come up with an abstract idea for a new app. Maybe they encountered something inconvenient that could be improved with the help of an app, or maybe they used an app they know could be inherently improved. In any case, the vast majority of those apps never get built.
Part of the problem is monetization. While there are plenty of possible apps that could improve someone’s life in some way, it’s not always a sure thing that they’ll make money. If you want to build a business around your app, you’ll need to make sure you follow at least one of the following monetization methods:
- Pay-to-download. First, you could charge people to download your app. Free apps tend to be more popular in general, but if you have a high-quality piece of technology, you can charge a few dollars for each download and still get plenty of action.
- In-app purchases. If you do offer your app for free initially, you can offer in-app purchases to make the in-app experience more pleasant or more powerful. For example, with free mobile games, it’s common to have an in-game currency that can afford you more in-game content or cosmetic enhancements.
- Another straightforward path is to feature advertising on your free app. This requires your app to have lots of regular users, however, so it may not be a reliable way to generate revenue during your early stages of development.
- Similarly, you could take occasional sponsorships as a way to fund your app. For example, you might host paid content from other providers on a rotating basis.
- If your app offers new content regularly, you might also consider a subscription model. In this scenario, you’ll charge your users a fixed monthly fee for continuing to use your app.
If you’re ready to build a business plan around your great tech idea, shoot me a message! I’ve helped dozens of entrepreneurs turn their abstract ideas into a reality, and I can do the same for yours.