Tuesday, August 7, 2018

What’s your monetization strategy?

Selecting how to monetize your app is a big part of any development process. Different kinds of apps can have very different opportunities and needs—so your monetization strategy can inform not just your business model, but your app’s final design, content, and code.

Microsoft Store offers a variety of different ways to add monetization to your app. Here’s a quick breakdown of our 4 biggest earners and how they can work for you.

Base price

Charging an up-front base price is a one-time transaction: you offer a product and the user pays for it. Microsoft Store allows you to change your base price at any time, in any market, so you can always experiment with your numbers and see how your target audience responds.
A general rule of thumb for setting a base price is to scope out the competition. Once you know what the market has paid in the past, you can set a price point for your own unique product.
You can see from the data below that charging a base price is the most used option in the Microsoft Store for apps.
Graph showing that charging a base price is the most used option in the Microsoft Store for apps.

In-app purchases

In-app purchases are microtransactions that allow customers to purchase additional content within an app itself. These small fees can build up to big returns—a Gartner Research report revealed that customers will spend 24% more on in-app purchases than they would to buy an app outright. Once a customer sees value, they have an incentive to pay.
Content is king for in-app purchases. The more your customers use or enjoy your app, the more likely they are to purchase new content that is bigger, better, or simply more.
In-app purchase is the most chosen method to monetize for games within the Microsoft Store, as shown below.
Graph showing that in-app purchases are the most chosen method to monetize for games within the Microsoft Store.

Subscriptions

With subscriptions, customers pay a recurring, scheduled fee to access your app. You select the amount, the schedule, and if it covers your entire app or applies to digital products within your app, like features or content.
The subscription model is ideal for apps that offer continuous content and services. In addition to a reliable revenue stream, you also gain access to a quantifiable base of loyal users.

Display mobile ads

Mobile advertising is one of most profitable app revenue models for developers with nativebanner, and interstitial formats heading the list.
If you elect the ad route, include your designers so they can fold your advertising formats seamlessly into your app experience. You can find test ads and more information on best practices here.

And finally…

No matter which monetization strategy you choose, be sure to check out how you get paid. Comment below on which monetization strategy you’re using!


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