The income of mobile applications is constantly growing, and, according to some estimates, over the next couple of years, it will increase by 1.5-3 times. Every day, application owners are trying to increase the profitability of their products. To choose the right income strategy, the developer has to focus on the application’s functionality and study the interests and geographic origin of users.
While the freemium model generates the most revenue, it may not be a good fit for your product or generate a solid profit. In order not to be mistaken in such an important choice, let’s look at the most popular monetization schemes.
SDK
An SDK is a software add-on to an application that enhances it and adds additional functionality. It is widely used for desktop monetization.
Every ordinary user of a mobile device has encountered some kind of SDK in his life – pop-up advertising windows, videos that play for a certain time, or some payment processors such as PayPal.
You don’t see some SDKs, but they may be running in the background of the application you are using. The main non-personal parameters that the SDK usually collect include:
- device type;
- device model;
- screen size;
- mobile operator;
- network type;
- CPU data;
- RAM, ROM data;
- location;
- IP address.
In general, SDK is one of the easiest ways to monetize desktop application. We recommend SDK Infatica – make monetization easy with its help.
Paid Apps
The second option is to make the application initially paid. Such programs are usually in the minority, but they can bring good profits. Some users prefer to spend a small amount on a purchase once rather than constantly pouring money into a shareware application.
But the problem is that before buying, people have to make sure it is a product that is worth the money spent. Therefore, this scheme of earnings is more suitable for well-known companies that release projects that users have long liked.
Freemium model
Compared to paid apps, the freemium model looks much more attractive in the eyes of users. To evaluate the product, people do not need to deposit money right away, make in-house purchases; they can enjoy the game without spending a penny.
The freemium model has several types: one includes an extended (premium) version of the product with additional tiers or functionality, and the other contains many in-app purchases.
In the first case, the user is content with the free version of the program, devoid of interesting functions (additional modes in games, useful tools or filters in photo editors), or uses the application until he reaches artificially created restrictions (for example, he passes the available levels in the game).
It is important to correctly determine which of the application’s functions to be paid by such a model. In the case of games, through testing, trial, and mistakes, identify the ideal number of levels available in the free version.
Why isn’t the freemium model suitable for some apps or games? Without a gripping storyline, it’s hard to get gamers to shop all the time. It is necessary to correctly place “hooks” that will attract users, constantly modernize and maintain the project at the proper level. Such tasks are beyond the power of independent developers, so they should choose a different monetization scheme: make the application initially paid or choose the next type of shareware product.
Free Trial
This is a classic type of trial use, familiar to many from desktop programs: the user gets access to all the functions of the application during the so-called trial period – most often, it lasts 30 days. High-quality videos and positive user reviews will never compare to being able to try a product yourself. And at the end of the trial period, users have a feeling of loss, which is difficult to deal with. They are forced to quickly make a decision and purchase the full version of the application. It is much more difficult to nudge users of freemium apps to buy, and Developers sometimes have to cut back on free features a lot, which can negatively impact the product experience.
A significant drawback of Free Trial is that you won’t get a second chance to convince users of the usefulness of your application. They will either feel that this product is vital for them or immediately forget about it as soon as the trial period ends.