What to choose between Free and Paid Monetization model?

Now when billing the App Store has become the next Gold Rush, we can’t ignore how tempting the mobile apps market has become. Earning from unique apps is not hard and many apps have already got swept up into tales of incredible revenues – like Flappy Birds earned $50,000+ per day model. But earning money from your app, which is floating in the ocean of Appstore is not easy, we need to gamble away our app monetization strategy to monetize more and more from our app.

The key to successful monetization is exactly understanding the AppStore and your target audiencesand undoubtedly,choosing the right monetization model that best fits your app. As monetization model varies from free to paid apps.

What Trends Say?

Since its inception, the App Store landscape has revolutionized. However, at the beginning, it was mostly occupied with apps that were operating on a paid model. And, for marketing their apps and making it popular among its users, some developers chose to release two versions of their apps – a limited free version and once users start getting engrossed in their apps, they use to release its full premium version. The strategy behind these releases was initially offering users to try the app for free and then once they start engaging with the app, asking them to buy itsfull premium version for a small price if they relishedthe app. However, this consumer-friendly model is no longer as popular as it once was. As nowadays, App Store today is conquered by freemium, or free-to-play (F2P), apps. Do you know – how these apps monetize? – Through in-app purchases (IAPs) or advertisements or a combination of both.

Premium Model

Here’re a few are some situations we’ve noticed where apps flourish on premium pricing.

Freemium Model

Freemium pricing model is currently the most popular model and widely accepted by developers for monetizing their apps. However, this pricing model has faced a lot of criticism, as the quality of freemium app experience is commonly depends on how many IAPs are integrated within the app. And, developers are also considered as the providers of limited essential features and functionalities as through in-app purchases they are asking users to pay for getting more enhanced features of the apps. But, despite of these limitations, users have shown that they are willing to suffer such restrictions for free content.

Here are a few apps that thrived by using freemium pricing:

As, we said AppStore is flooded with apps, which increases the possibility of many competitors of one app and your app is bound to face competitors every step of the way. For making your app a big hit, whether it should come up with some unique and revolutionary features or backed by any prominent publisher. However, for games standing out in completion is more difficult because of their fast depreciation rates and short-lived fads. So, to stayahead in the competition both paid and free app developers need to experiment new methods of monetization apart from creating world-class apps.

Success metrics of freemium model is depends on the IAPs, as users spend a substantial amount of money on IAPs. And, developers of successful freemium apps have reported earning high revenues because they have a small percentage of daily active users (DAU) who willingly purchase app’s IAPs to enhance their experience. However, many people have a low willingness ratio to pay for IAPs, because they are open to spend hundreds on paid apps, which are known for their quality and better experience as compared to freemium ones.

Apps with Advertisements

Nowadays, many developers have even started including advertisements in freemium apps, alongside IAPs to better monetize their apps because these ad networks, which are easily available today offers developers an opportunity to quickly monetize their apps with a little risk. However, mobile advertising started with solely banner ads, but as it grown, it started including video, interstitials, notifications and more.

For making your app successful firstly, it’s always important and recommended to explore the best app monetization model that best fits to our app and find the most rewarding format as well because with so many available ways to monetize your app, it totally depends on the app and its target audiences. And secondly, wisely choose best app monetization agency that has expertise in monetization of apps. Parangat Technologies is a world-class mobile solution provider that specializes in providing end-to-end mobile solutions including consultation, designing, development and app marketing as well. To more visit our website www.parangat.com

So, always keep up with the trends and current fads to implement the right monetization strategies that will help you drive download and maximize revenue.