The Benefits of Monetizing Your Mobile App

The app marketplace is ever increasing, filled with the ideas and dreams of developers from around the world. From gym workouts to cooking recipes, and from news articles to instant messaging, hundreds of apps appear each year in the hope of filling a gap in the market and turning a profit. For while it can be a labour of love, for most developers, the major benefit of monetising their apps is of course, the financial reward. However, there are other advantages and they all involve how you use that initial reward.

The Money

Developers receive money once they monetise their apps. You’re probably thinking that this is a no-brainer and you’re perfectly right. But how do you monetise an app? And how much do you get anyway?
There are a few strategies for turning your app into real dollars and cents, but none of them will be effective unless your app is unique, addictive and useful. You could simply place your app in the marketplace with a price tag, meaning that users must pay before they download it. Or you could have in-app purchases, where users are offered particular items or content if they wish to progress further. The other main way of receiving money from your app is by implementing ads; if users click on the ads or follow a desired course of action, you will receive a certain amount of money based on a prescribed rate.
The amount that developers receive really varies. If you’re only getting about a hundred downloads a day, you will probably make under $5 per day. On the other hand, think of Rovio, the company that created Angry Birds; with over one billion downloads, the game is one of the most successful games in app history and it’s fair to say that Rovio’s financial status improved drastically as a result!

Grow Your Team

Perhaps you have received a sizeable profit from your app. Do the benefits stop there? No. Using your new funds, you can reinvest in your business in a number of ways. Why not start by growing your team? Additional team members can mean new skills, new perspectives and new ideas.

Increase Spending on Marketing Campaign

While you’re looking for new team members, why not use a portion of the funds to expand your existing marketing plan? This could mean spending more money on social media advertising, Google Ads or cost-per-install marketing. The latter involves placing ads in other apps; every time a user installs your app as a result, you make a payment. If you’re not too savvy when it comes to online advertising, don’t forget that there are companies out there that specialise in it. Some examples include Brus Media, Jack Media and Tradedoubler.

Build More Apps

More money can also mean more apps! Kick off the cycle all over again by designing, building and monetising new apps. While the process isn’t easy by any means, having a range of successfully monetised apps showcases your experience, skills and strategic abilities.

The moment you monetise your app can be linked to so many scenarios: the moment you hire that new staff member, the moment your traffic skyrockets due to increased advertising or the moment that your third app breaks records. Monetising your app really is about more than the money, so think of the bigger picture!
What do you think? How has app monetisation benefited you and your business? Share your thoughts in the comment box below.