How to Monetize an App [In 2023]

In this video, we look at how to monetize an app effectively in 2023 in this in-depth guide. We dive into the world of app monetization, examining 5 distinct methods, their advantages, drawbacks, and the potential profits each brings. Get first-hand insights from successful business models such as Vivino, Amazon, Booking.com, Netflix, and many more.
- Selling Products or Services: From simple affiliate deals to running a full-fledged eCommerce store, learn the intricacies of selling physical or non-physical products through your app.
- Digital Subscriptions: Understand the freemium model, ideal pricing strategies, and the right fit for subscription-based apps.
- Advertising and Sponsorships: Explore how to integrate ads, from banners to interstitial ads, into your app without harming the user experience.
- Selling Digital Goods: Unveil the secrets behind profitable in-app purchases, predominantly seen in gaming apps.
- Selling Data: Learn about the potential pitfalls of selling user data, highlighting crucial data privacy laws.
We dissect each strategy's complexity, scalability, and profitability, and reveal which methods are best suited for your app.
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[@felixmarlon2189]

I am presently 8n the process of getting an app built for an idea I have. It's troubl8ng deciding on the best course of monetization. This content was really helpful. Still debating but it helped.

[@stevenfoster9402]

I love your channel! I'm making my own app right now and your videos are always right on time and super helpful!

[@RawStartup]

Thank you, very glad it is helpful!

[@MrVisionDPB]

i enjoy the simplicity of the content peovided. Would you suggest or recommend any tubers who teach the Backend legal enrollments of business in the business of apps, need more depths to understand how banks will back you up in this type of business.

[@venkatk.krishna]

im planning to built an app after seeing all your inspirational videos. you are my guruji(meaning a leader or teacher in hindu religion)🙏🏻

[@RawStartup]

Thank you it is my pleasure to be your guruji!

[@enaut666]

Great video as always! I've seen many online services and apps that initially were free or use freemium model but then they had to start monetizing. Which is the way to go from a freemium model and evolve to a recurring payment model without suffering too much? I'm developing an app that can be used once a day or maybe a couple of times a week for 1 or 2 minutes. I think the freemium model its the best but with in-app purchase options but that way there are no future incomes from the app so it could be dangerous for the future expenses of the app. It's a big dilema! 😛

[@RawStartup]

Thanks, yes good point, the key here is to do a lot of testing as you start monetizing. You cannot trade Monetization for growth, then you are in trouble.

[@joegoosebass3958]

Thanks for this amazing information, I'm a developer currently looking to start building my own apps and this is the perfect channel! Thank you

[@RawStartup]

Thank you very much, we have another video coming about how we built and app in 24 hours! I think you will like it.

[@joegoosebass3958]

@@RawStartup Amazing, thank you

[@AlviTVBD]

great job, neatly explained

[@RawStartup]

Glad it was helpful!

[@aleksejvidic6897]

Can you make a video about determing price point for subscription mobile apps?

[@RawStartup]

Thanks that is a great idea, added to list, let's hope I can get to it!

[@progtom7585]

Number 5 is my preference, but you need solid T&Cs for the users, a solid and watertight privacy policy, avoid even collecting personally identifiable information (PII) like the plague if you are wise (not smart to hold that data anywhere as what can be held can be hacked) and anonymize user data... Does this sound about right for point 5? That and check vs GDPR, UK and US privacy laws.

[@RawStartup]

Yes that is right and generally be very careful to follow all rules and regulations.

[@Norfeldt]

A fine overview, but a very important note to #2 and #4 is that both apple and Google takes a 1/3 cut of your sales

[@RawStartup]

Thanks yes very important point, it is mostly 30%, but this is coming down Google is down to 15% on subscriptions and Apple does 15% of the second year. As far as I can tell.

[@Norfeldt]

@@RawStartup yes they are slowly adjusting it (with conditions) but it still makes it feel like swimming up against the revenue stream - especially if you only have 1% paying customers

[@dhanushsriramula2888]

There is a third-party sdk that request survey and internet sharing. Is it right to use it? I am from india

[@deskleineibst3010]

Hi Heini, thanks for this, very useful. We were going to offer subscription models for our organizational dApp but have decided that we would instead let users make one investment in the dApp, at different levels and they would be organized forever. There will be no advertizing on the dApp. In your experience are we making a mistake?

[@RawStartup]

It really depends, but if the users keep using the app for a long time. If they see value for a long time then I would rather have a subscription. If on the other hand, they don't stay very long or it is very infrequent then maybe a one-time payment is ok.

[@deskleineibst3010]

@@RawStartup Thank you, users will keep on using it for a long time. Our thinking was that we want them to get the best value out of 1 investment. May I ask, is a subscription model better for the App company or for the user?

[@iw3xchange]

New subscriber here. Love your videos! You sound so much like Guga Food.. you're probably siblings I bet 😍

[@RawStartup]

He he thanks!

[@edwinmakingmoves]

Hey I'm checking out your KZbin channel raw start up. I have a question how do you sell data?

[@RawStartup]

That is a bigger question, I mean you find someone who thinks your data is valuable and sell it to them.

[@tourmaline-5864]

Great content

[@RawStartup]

Glad it is helpful!

[@ddmozz]

Hey Heini, what do you think about websites? I think that they are the future, despite the app boom of the 2010s. If you have an established app right now, that's great. But starting one in 2023 my be an uphill battle as people don't like downloading new apps.

[@Sammi84]

Plus the web of today is not the web of 10 years ago. So many small features have been added to html, css, and javascript that they add upp to a lot, and have closed the gap to native development by a lot. And legacy browsers have gone extinct and most users are on self updating browsers now, so you can realistically expect all these modern features to be available. Lots of stuff you had to go native for before you don't have to any longer.

[@RawStartup]

Thanks yes this is a good point and question. I would say that 10 years ago we believed that web was going to eat apps within the next 5 years. This has not happened although the feature gap has become much smaller, web can do almost anything now. My conclusion now is that the apps are still very much alive and will keep being so for the coming years. New tools like Flutter have also made it considerably easier to build an app. That said, when you start out if you can build it on web only start with that. Then if it works move to making an app.

[@Sammi84]

@@RawStartup Good point. Reminds me of how people have been saying "this will be the year of the Linux desktop" for almost 30 years now XD The important distinction is how the mobile web is actually available on all devices right now.

[@ddmozz]

@@Sammi84 The year of linux desktop lol. But this is true though, and I think the main benefit of a website is that you're not subjected to the whims of a company (Google or Apple) and their app stores that can block you at any time or add a fee etc. And, most of the time you're using tools that are open source and free. It's the closest you can get to actually owning a digital property. Sure, there are situations where an app is definitely better, but it's less obvious nowadays.

[@k415hu7]

how can I get ideas on what app should I make that can be profitable

[@RawStartup]

Good question, do a Brainstorm and make sure you check the idea using this tool kzbin.info/www/bejne/hKjciGdsn9SmfK8

[@CzarinaHarris]

Any advice for high ticket pricing? My app is a white label marketplace for asset managers to sell mortgages. Maybe annual subscriptions?

[@RawStartup]

I think that is very different, yes certainly also annual pricing. Often there is also a lot of customization and I would make sure there is a minimum commitment.

[@jakefrosher]

Nice

[@RawStartup]

Thanks!

[@gabrielfono844]

Thanks a lot I am building a social sharing platform for software engineers and cybersecurity experts where we share blogs , tutorials, projects , resources for engineers to grow to start and grow their career. I am also planning on sharing some successful founder journey. I am not sure how I could mobilize this app. I am almost done with prototype.

[@RawStartup]

Best of luck with it!

[@shravansays95]

For 1000 visitors on App , how much income generated by ads

[@RawStartup]

You need to look page views and this is calculated in CPM. One CPM is 1000 page views. You can get paid everything from $1 to $50 per CPM, but I would say $10 to $20 is pretty normal.

[@shravansays95]

Tell the perfect figure in advertising

[@RawStartup]

Not sure exactly what that means.

[@KrisConklin]

Heini, how do we book a call with you?

[@RawStartup]

Good question!

[@boristasikj3018]

Hey @KrisConklin let me know if you have an App Idea, would love to chat and explore possibilities.

[@turahtid]

What do you do after you think you have an MVP mobile app?

[@RawStartup]

Release it and get it in front of users. Learn from that and keep going!

[@turahtid]

@@RawStartup Thank you! I'm sure you'll be interested in what I release. I hope it pops up on your radar!

[@LettersToEsme]

🪂🪂🪂🪂🪂

[@RawStartup]

😎