Today, I want to talk to you about the best way to make money with apps in 2017. This is a very popular topic among anyone getting in the app business because this is how you’re going to make your return.
Full post here: https://www.bluecloudsolutions.com/blog/apps-make-money-2017-best-3-strategies/
I want to talk about what’s hot right now, what is working right now. And there’s a few things that are working and a few things that aren’t working really as well as they used to.
Advertisements is when you show a pop-up for somebody else’s app and then you get paid every time that you show that pop-up. Advertisements still work. They work just as well as they do on the web, but they can go up and down based on the ad network.
You have to show advertisements through an ad network, and so you don’t really have a lot of control over who the advertiser is, and how much they’re going to spend on a given day. So ads can work, but it really comes down to how much money the advertisers are spending that month.
Ads can be a very lucrative source of revenue for you. It can be a very quick and fast way to make money. But you have to have a lot of downloads, thousands and thousands of it, to make advertising work.
2. Create more in-app purchases for your users.
What happens with most people is they put in a few in-app purchases into their app and no one buys it. And they’re like: “Well, this app doesn’t convert, there’s no way I can make my money on this.” And they just forget about it, and go back to advertisements.
But you don’t just put in-app purchases in your app. You have to sell your in-app purchases. What you have to realize is that the way that the world works in 2017 for the app business is you have to market to people. You have to put your app in front of them and say: “Hey listen, here’s the product that we’re selling, make sure to check this out.” So every time that they go through the app, you need to make sure that they know that it’s available, and that it’s easy to buy.
So, in-app purchases are actually becoming a very viable source of revenue for people, but you have to sell it to your users. You can’t expect your users to go searching around and pick through every single menu and try to find it.
And not only do you need to sell it, you need to consistently add more and more in-app purchases to your app. If you want to make more money, you need to just have more things that people can buy. And then you sell it to them, you present it to them in the app.
3. Subscription model
This one has the most potential. Apps like Spotify and Pandora have subscriptions. Meaning, you sign-up and say: “Hey, for two dollars every week, or for 10 dollars every month you’re going to keep this app and you get all the premium access to the products.”
This is the future of App Monetization. The most successful apps will focus on subscriptions. It is a winning and proven business model and not a lot of people are doing it.
Now, Apple specifically has a few guidelines on what kind of apps can use subscriptions, but as long as you just put a lot of content into your app, or even stream content in, like if you have a YouTube channel, you can just show those videos directly in your app and put a gate on it.
Adding a subscription and giving people access to premium parts of your app is the best way to make money with a really good app over the next 12 months.
For this model to work, you have to have a great product. You can’t sell crap, you can’t sell garbage to people and expect them to sign up for a subscription. If you do have a great app though, make it a subscription and get people to sign up for this subscription, and then continuously deliver on what you promise.
So, if you’re thinking about getting into the app business, or if you are in the app business and you’re wondering “How do I make money?” look at these three types of monetization.
The first is Advertising. It’s easy, but you’ve got to have a huge amount of volume, you got to have the right type of App—usually a game, or a casino game really for that to be a big winner for you.
The second is in-app purchases. With in-app purchases, make sure that you are selling the in-app purchases, you’re presenting it to people, and you are consistently adding more things people will buy.
And finally, add a subscription to your app. The subscription is: “You’re inside the app, here’s a pay wall, there’s a subscription, and on the other side is all these premium content. Make that a subscription and you will see something really, really amazing happen to your revenue reports as you go through the year.
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I have a great dating apps. How can I market and promote my apps..???
Can you please teach me step by step.
Let's say for example you have a game app and you offer a subscription, that people actually purchase. Could you also sell in app purchases independent of the subscription, or should you include the in app features as a part of the premium subscription? Thanks.
Very Interesting Video!
Do you think it is possible to make a subscription Model on a Game?
Like when you subscribe you can get new Levels?
And do I then constantly have to release new Levels to fit in the terms of this subscription business Model?
Sorry for my English :)
Excellent succinct video. Thx. Can you share info on how one might project revenues for the 1st of your 3 categories: simple advertising. Building revenue model for new app and trying to ascertain monthly ad revs based on a given # of Active Users. How to translate to projected ad rev? Thx again for your insights.
It really hinges on the CPM you can get which depends on if you're showing fullscreen vs banner, category, traffic source and country. You could ballpark something like $5 per 1000 impressions for generic US full screen ads and that could go up to $20 if it's the casino category or $1 if it's a generic app. From there it's just math - impressions -> clicks -> installs -> $$ per install
Your consistency and goodwill are admirable. Thanks a ton for your content man. You're literally the only guy I find credible and value in this space.
I had some questions while watching the video.
1. How about In App Purchases in Android ? I get the feeling that you always refer to the iOS market.
2. Do you have any apps in the play store? Can you do a video for android?
3. I've made 2 android apps and have only 12K downloads. Do you suggest I try publishing an iOS app in 2017?
4. I have literally zero knowledge regarding iOS app marketing (other than ASO). What does one do to push for traffic in the App Store?
Thanks again for sharing your thoughts. A mentor like you is invaluable.
Vinay Kumar hey indian friend i am a pakistani i want to know how creat a app without knowing a coding for developing because i am only 14 and i want to give finacial support to my family its any way to develop a app from any website or something please answered me
Do average app designers utilize Youtube to draw users into their apps and to encourage IAPs/subscriptions?E.g., we noticed Kim Kardashian posts teaser snippets of content that can only be fully accessed in her paid app. If viewers want to see the rest of the video, they'd have to go download her app to access it. Can we use Youtube in the same way to create what essentially would equate to being a free ad to draw people into our apps and entice them into premium IAP or subscriptions? OR, is her Youtube-to-app funneling successful because she already has a legion of followers on her channel which is a pre-established audience to advertise to? We're only in our infancy of understanding ads and online marketing. Just wondering if this could be a viable option for the average dev. Ty Carter! 🤓
Always appreciate how you give examples for us- the simple explanation of what a subscription might look like such as taking IAP premium content and flipping into subscription. For those of us that are in our early learning stage w/ apps, those kind of examples and illustrations go so far in providing a visual. Tyvm!
Yes but you need advertisers + publishers to make the "market" - you can do it with your own apps as long as you can match the market price for CPI (which will allow publishers to make comparable $$ to other networks)
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