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Ways of Making Money from Your App

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    Okay, so to get started,
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    let's look at some alternatives you
    have available to monetizing your app.
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    And when we go through
    these alternatives,
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    let's look at how easy it is to start
    making money using this alternative.
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    How it supports a good business model
    where you can make long-term revenue,
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    and finally, what value this
    monetization model provides to the user.
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    So, let's start with our first
    alternative, paid downloads.
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    This is where the user needs
    to pay in order to even
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    download the app to the phone.
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    So how about easy to launch for
    paid downloads?
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    Well perhaps it's kind of obvious
    that this is very difficult to do.
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    And you have to have an app where the
    user really knows the value of your app
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    beforehand and is willing to pay for it.
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    Compared to overall number of apps,
    there are very few that can do this.
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    So a paid downloads monetization model
    is definitely not easy to launch.
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    What about long-term revenue?
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    Well, once the user
    has paid up front for
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    the app,
    they don't expect to be charged anymore.
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    So only using paid downloads will
    limit your revenue to the number of
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    users downloading the app.
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    So paid downloads has a limitation
    when it comes to sustaining long-term
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    revenue.
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    Then what about user value?
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    A paid download definitely
    has a high use of value.
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    After all, the user is willing
    to pay up front to get this app.
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    So they really want it.
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    All right, let's look at another
    alternative, subscription.
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    This is where the user pays a certain
    amount regularly, for example, monthly.
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    So is a subscription monetization
    model easy to launch?
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    The answer is definitely not.
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    Again, you're asking the user
    to pay up front, and even more,
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    you're asking them to pay,
    for example, every month.
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    It is a huge decision for
    the user to want to do this.
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    So what about long-term revenue?
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    Yes, spot on.
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    The user will continue to pay for
    your app as long as it provides value.
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    So you will continue to get revenue
    from all users of your app,
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    not only at the time
    when they downloaded it.
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    And what about user value?
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    Same thing as for paid download.
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    You have a user that is willing to
    make an up front financial commitment
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    to use your app.
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    So obviously, your app provides a very
    specific and high value to the user.
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    And both these monetization models,
    paid downloads and
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    subscription, can be configured in
    the Play store when you deploy your app.
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    Okay, now let's look at
    displaying ads in your app.
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    Is this monetization
    model easy to launch?
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    Yes it is.
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    In particular, if there is no charge for
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    the app, users understand that you
    have to make money from something.
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    What about long-term revenue?
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    The answer is yes to this one too.
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    As long as your app is used,
    you will be paid for displaying ads, so
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    this supports a long
    term business model.
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    What about user value?
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    As it turns out,
    ads do provide great value to the user.
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    As we will see, AdMob, the platform
    that we will look at in this course,
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    is very good at serving ads
    which are relevant to the user.
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    And ads which are relevant
    to you is a good thing.
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    And now for the last alternative we
    will look at, in-app purchases enable
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    you as a developer to advertise and
    sell digital goods right in your app.
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    For example, they can mean new levels or
    items in a game.
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    So is this model easy to launch?
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    Yes, in-app purchases
    are very easy to launch.
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    The user does not have to pay for
    anything up front.
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    What about long-term revenue?
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    Well since you can offer and engage
    the user with new digital goods all
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    the time, in-app purchases have
    a great long-term revenue potential.
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    Then what about user value?
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    Well since the user is engaging with the
    app, and you control what to advertise
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    and sell, it will be very relevant to
    the user, so great user value as well.
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    All right, so those are some of
    the monetization alternatives available.
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    And as you can see, ads and
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    in-app purchases provides a great
    way to make money from your app.
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    They are easy to launch, they provide
    great long-term revenues, and
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    they align well with the user values.
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    And in this lesson,
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    we will be specifically be
    looking at displaying ads.
Title:
Ways of Making Money from Your App
Description:

02-02 Ways of Making Money from Your App

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Video Language:
English
Team:
Udacity
Project:
ud876-3 - Google Play Services - AdMob
Duration:
03:59

English subtitles

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