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

1. Title:
   Key Principles of Monetizing a Native App
2. 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.