Everybody wants to make money from an app. When choosing a strategy for desktop monetization, numerous factors must be taken into account. One of them is the business model.
Business model
It is important to understand what type of product the product belongs to. There are 3 of them, so let’s take a look.
Free app
In this case, download and installation are not paid, the application does not contain paid content at all, the functionality is available to all users in full.
- Pros: users arrive quickly and in large numbers; easy to collect information about behavioral patterns (advertisers value this data).
- Cons: people will still be outraged by advertising; ad blockers on smartphones deprive part of the income; niche applications with a limited set of functions cannot place a lot of ads; it will look unnatural and alienate users.
Freemium
Conditionally paid application (freemium) presupposes that download and installation are not paid, basic functions are available to all users, but advanced ones need to be bought by a person. It can be anything from additional tools in the video editor to a closed level in the game. Services with subscriptions work the same way.
- Pros: users come quickly, most of them stay; a trial period for advanced functionality (if any) will push people to buy; after the purchase, a person becomes attached to the application, and begins to invest in it more often.
- Cons: if there are too few basic functions, users will start leaving; if there are too many basic functions, people will not buy additional ones; active buyers may resent ads.
Paid
Paid apps mean paid download, except for short trials. Inside the application, just like in the previous type, there can be additional tools or content for an additional fee.
- Pros: with each new download, funds are credited to the user’s account; high level of engagement and retention; high loyalty due to the absence or small amount of advertising; high requirements motivate to develop the application constantly.
- Cons: users rarely come, as there are many free analogs; advertising should not be used a lot or at all (outraged people).
The best idea is to choose the way to monetize desktop application based on a business model. Users of a free application, for example, will be much more comfortable with “unclosed” ads, in contrast to those who paid for the product.
Free apps
Almost all free apps benefit from advertising. However, keep in mind that advertising revenue will depend on the number of users of the product. The competition among free applications in almost all areas is high; it is necessary to make such a product so that people like it more than others. And, just as importantly, it can keep users for a long time.
Advertising
Advertising is a way to monetize desktop games that suits everyone. Especially the first two business models. If you count on constant, serious income from the application, then advertising is the only option for free products.
Sponsorship
It is another relatively universal way to monetize. Users are asked to perform certain actions using the app for a reward. In this way, the product owner receives both activity and payment from the advertiser or partner network, which posts the necessary information in the “live” product.
The main disadvantage of this type of monetization is its novelty. Therefore, the team needs a good specialist who will be able to convince everyone that sponsorship is beneficial.
Conditionally paid apps
Despite the presence of paid content, shareware applications also need monetization.
Subscription
Some people consider subscriptions as a standalone business model. And if the user gets access to content through it, then this is really a separate business model. But in this case, the meaning of free download is lost.
Therefore, we will consider a subscription as a way to get advanced features and a more comfortable existence in the application.
An example is the well-known Vkontakte application. Subscription will allow you to listen to music (not ads) in the background without a limit of 30 minutes. Is the content available without payment? Yes. However, more and more people are signing up to use the app more conveniently.
If everything is in order, this method will provide a stable income for the owner of the product. If the user has not changed the payment method, the subscription can be renewed automatically (you must warn about this in the user agreement!).
In-app purchases
Both virtual and real goods are sold. In the first case, the user acquires a character, in-game currency, or an item; the ability to change nickname, raise a post to the top or advertise a profile. Secondly, one can buy a thing or service (business model of online stores and services).
In-app purchases are the perfect way to monetize your games. However, we must not forget that good free-to-play allows you to maintain a balance in the game world, regardless of whether the user purchases any content.
Experts recommend not selling abilities or character levels; it is best to concentrate on exciting costumes, accessories, houses, as well as the ability to edit the profile.
Conclusion
Of course, there is no guarantee that this or that monetization method will work 100%. This is fine. But any experience, including negative, will help to assess the situation and choose the vector of development correctly. So we recommend not to be afraid of experiments (within reasonable limits) and try all the options that are suitable for the application.