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