App economy is growing stronger by the day. There are millions of apps out there and approximately 5% end up making enough money to survive. That’s an extremely poor strike rate. While most of it can be attributed to app quality, market fitment, marketing and lifecycle management, the one thing that is often overlooked in failed apps is the ability to monetize it in the right way.
Apps can be monetized in several ways and some of the most popular monetization models include:
- Freemium – Free upfront + In-App Purchases
- Paid + In-App Purchases
- Sale of Goods/Services
Most indie app developers are applying wrong monetization models, which lead to failure. I have created a simple framework that can aid app developers in deciding the best suited monetization model to their app.