There’s several important factors to consider when deciding how you’d like to monetise and generate revenue from your app. Generally they depend on your audience demographic. Founder of M14 Industries, John Kershaw, has some tips for getting the most out of your app.
Which channels are going to help you monetise?
If you’re targeting a demographic who tend to spend a lot of money (people with beards going on dates tend to buy more beard grooming products, for example) then allowing advertisers to reach your audience can generate both revenue for you, interest in the advertisers’ products, and relevant stuff for your audience.
In-app adverts can work, but they’re generally clunky, ugly, and carry a risk of illegal and unwanted tracking data being generated. More tailored and native feeling advertising via email campaigns tends to work well. Think about partnerships, rather than ad views.
‘Freemium’ subscription models, where the core product is free but you pay for extras, work well for younger audiences who are more used to this model. Plus, it’s a great way to get a lot of people into your app; even those users who aren’t paying you, are adding value to the service as they’re making your pool of potential matches larger.
M14’s default settings create a freemium model where users pay a monthly subscription fee and can see who likes them, among other things. Charging a lower recurring revenue amount is better than a one-off fee, as it gives you a more reliable source of income.
Subscription-only access can work, but it’s much more difficult to monetise. It’s only worth doing if your users are used to paying for access, and if your offering is very strong (super niche communities are a good example of this). Free trials with subscription-only services make things a little easier as the user is able to really see what they’re getting for their money, before paying.
Merchandise rarely generates significant revenue, but if it pays for itself and you get a mug with your logo on it, we call that a win.
Our recommendation is a little bit of research, then trial and error. You can always change your offering. And to be honest, you should expect to; over time you learn better and smarter ways to do things, and users’ expectations change. Using the early days of your app launch can be a great way to test which methods of monetisation will work best for you. Our team will be there to provide hints and tips along the way.