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← Key Principles of Monetizing a Native App

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Showing Revision 2 created 09/07/2016 by Udacity Robot.

  1. Now, we're moving into
    the world of native apps.
  2. And this is a world that's flourishing.
  3. You might notice some similarities
    between what we spoke about for the web,
  4. but there are also some specific
    monetization methods for native apps.
  5. >> At first, you need to think, what
    would be the best model for your app?
  6. It's likely to change, but that's fine.
  7. You need to be agile and
    listen to your customers.
  8. Let's look at some of
    the most popular options.
  9. >> First, you can monetize premium apps.
  10. That's selling your app for
    a fixed price.
  11. In a lot of cases, this might not
    provide you with enough revenue, so
  12. you can also optionally include ads or
  13. use in-app billing to sell
    additional features or content.
  14. Now this model works great for
    certain categories, like games for kids.
  15. In this example, parents can
    pay a full price up front, and
  16. a model with like ads or in-app
    purchases may not work as well since
  17. the kid would have to
    make those purchases.
  18. However, this model may also limit your
  19. app's monetization potential
    in developing markets.
  20. You may be able to achieve greater
    revenue using the freemium subscription
  21. or advertising model.
  22. >> And monetizing freemium apps.
  23. Users are more likely
    to download a free app.
  24. Later, you could use several
    options to monetize.
  25. First, use in app payments
    to unlock more features.
  26. For example, games like Angry Birds,
    Clash of Clans and
  27. many others, and productivity apps,
    Evernote, Springnote,
  28. all are using this to
    provide a free tier.
  29. Second, subscriptions for
    recurring services.
  30. It might be used progressively or
  31. expire after a period of time, such as
    a game booster or a news subscription.
  32. Many examples like Pandora,
    Financial Times, Strava,
  33. Dropbox and many more are using it.
  34. Another option is just to
    leave the app free, and
  35. use it as a marketing or
    as an enhancement to another product.
  36. >> E-commerce is another monetization
  37. option
    >> In this model, you can sell physical
  38. goods, like tomatoes, clothing,
    electronics, what have you.
  39. And you can also sell other services.
  40. Think about Etsy and
    Amazon as good examples of e-commerce.
  41. >> The question is, which model
    gets the best results for your app?
  42. Most app services are made
    to help you figure out
  43. what combination works best both for
    your audience and your bottom line.
  44. You should remember that you
    will need a lot of traffic
  45. in order to make this model work for
    you.