The Art of Monetizing Apps at No Cost to User Experience

App developers must choose a path to revenue. This direction might involve ads, direct sales, subscriptions, or partnerships. In any case, their job is to supply quality products that are worth the hassle, be it watching a promotional video or signing up for a monthly plan. This article focuses on crafting the most suitable monetization approach that doesn’t diminish the user experience.

Old but golden: direct sales

Many apps still follow the traditional approach: users pay a fee and get to download and use the application. Yet, statistics on monetization trends paint a slightly different picture. According to the 2024 overview, paid apps generate less revenue than other models. For example, the freemium model dominates the market, showing leading numbers in income.

While paid apps are slowly becoming less common, this strategy can work. It’s typically best for apps that solve an issue, provide proven professional quality, and promise long-term value. As for user experience, it does not affect it at all. However, it might be challenging to convince users to purchase them without trying it first (adding trials can help).

Freemium takes the cake

Freemium stands out in the market due to its many strengths. For one, users get to experience the basic version of the application (available for free), which significantly boosts the user experience.

After they start using the app more frequently, they can naturally feel motivated to invest in the premium versions. Of course, it’s crucial to look for the balance between the free version and special perks for subscribers. You don’t want to give away too much, but you also want to make it enough to prove its initial value.

In-app purchases are popular

Despite some criticism of in-app purchases, many users make these transactions. For games, it could mean buying additional equipment or unlocking exclusive content. Your goal should be to make it possible to use the app without making any purchases but make it far more enjoyable once they do.

Ads rule apps

Free apps that generate most of the revenue from ads are prevalent. Many developers combine ads and in-app purchases for maximum effect. To preserve user experience, the timing of promotions is essential. They should not be too frequent and preferably bring value to the user. For instance, watching an ad in exchange for the chance to play longer. Research also proves that ads are way more effective when linked to rewards.

More subtle approaches

Besides ad networks empowering monetization, you have more external options for earning revenue. For example, you can pick an app monetization platform that introduces a novel method of monetizing or is specifically designed to serve your target audience. To preserve user experience, consider monetizing your app by letting users share their unused internet bandwidth.

Data collection

Some apps make money by gathering anonymized user data and sharing it with interested parties. The user experience is unaffected in this case, but you might encounter some obstacles. For one, not everyone feels comfortable letting apps collect information about them (even if it does not identify them). If you go down this path, comply with the necessary regulations and prioritize consent.

Conclusion

Monetizing your apps can be difficult. It involves paying attention to the market and industry standards. Some strategies work brilliantly for some apps, while they won’t generate much for others.