The monetization landscape is constantly shifting, driven by legislation, economics, or changes to store policies. From IDFA and SKAN 4.0 to the changing economic environment, reducing your app’s risk can be done by creating a diversified monetization strategy.
There are four steps to help you diversify your app monetization strategy:
- Environment and Opportunity
- App Audit
- Provide Value
- Gain Momentum
We’ll cover the details of each of these steps. If you’d like to work along on your own blueprint while you read this article, make a copy of the free Diversified Blueprint Template. Let’s dive into each one.
Environment and opportunity
The only thing that is certain is that the app environment will continue to evolve and change. Take note of the global economy, and the app ecosystem changes as you craft your diversified monetization strategy.
When the economy is good, users have more room in their budgets to spend. In this environment, focus on upsells, moving users up the rate card, and pushing for longer commitments like annual subscriptions.
When it’s in an economic downturn, your users will have less discretionary income available. In this environment, drive trial and adoption of your app by focusing on offering free trials and discounted microtransactions. If you’re looking for a more specific direction, check out these articles on how to weather an economic downturn and keep growing during a slowdown.
App marketers have to be dynamic as legislation and evolving user preferences change the app marketplace.
Next, you’ll want to audit your app’s current diversification of monetization channels. Start by determining if your current strategy is the best fit for the long term. Then examine which monetization channels you might want to add or enhance.
Ask yourself if your app is fully maximizing the following:
- In-App Purchases (IAP)
- Non-Subscription Free Trials
- Access to Premium Content
- Ad Supported
You can also audit the competitors in the space to see how your apps compare.
Don’t forget reader apps and physical good-based apps have different monetization options.
“Providing value is the cornerstone of successful retention & monetization.” – Jenny Pollock
Think of what your users value most, whether it be in game currency, unlocking new levels, exclusive content or status. Depending on the app and vertical, there are many other things that your users might value. How can you be more generous with these things?
If you don’t know what your users value, start with some user research. Check out Business of Apps podcast #128: Building user research based app monetization strategy.
“The main ingredient of stardom is the rest of the team.” – John Wooden
Gain momentum by coming up with three people who can help as you update the monetization strategy.
As you are reading and working through your own blueprint, make a commitment to one thing you will do this week to move the needle towards further diversification of your app’s monetization strategy. It could be as simple as reaching out to one of the three people you’ve identified to help.
If the previous steps revealed you need some new features, check out How to Get Your Feature Built: A Playbook from Idea to Production.
With a diversified app monetization strategy, you will be set up to weather any storm.
Want to learn more?
Want more details on how to get started with your diversified monetization blueprint?
Grab your ticket today and join Jenny Pollock at #MGS23 for an interactive session on the importance of having a diversified monetization strategy.
We’ll do a deeper dive into monetization diversification, and you’ll leave with a blueprint to diversify your apps’ monetization efforts. You’ll leave ready for whatever is thrown at you next!