App Monetization Overview
Making money this is what everyone really really likes to talk about because this is what this is like the business side of axis is what is what but you know overnight millionaires you wake up I was you know I wasn't doing very well on all of a sudden I had a nap go to number five and I all of a sudden made more money than I've ever dreamed of in a matter of hours so like it's possible and I'm not trying to say that you know get rich quick or anything like that it's hard work but all I'm saying is that the app store is so big and so like powerful that monetization is a big thing to think about so what is it terms and types this is typically what you're looking at right like not purchase advertising and all that good stuff what exactly is monetization well it's turning downloads into dollars it's keeping the users engaged and how you pay your bills right this is pretty self explanatory a lot of people forget that by offering things that you can buy what keeps people involved like if I w...
ant to keep buying you know coins to keep my town building in sin city to great thing to keep going and also is how you get your money back all that sort of stuff a couple of terms that you might hear me mention or that you might read on blog's somewhere e c p m that is, earnings per thousand impressions. Every thousand people that see an advertisement, how much money do you make? Five dollars five dollars cost per install that's used in advertising. Average revenue per user. Ten million users. Million dollars in revenue. Ten dollars revenue per user, lifetime value. How much money do you make over the lifetime of a nap? I'm gonna go through some of these types pretty quickly because we talk a lot a lot of this and I think a lot of it you've probably seen before. I got paid app synapse, advertising, subscriptions and sponsorships. I want to spend some time here because it's really is where it gets really fun on also want talk about pricing. And steve talked a little bit about this specifically with these two. Now, with pricing your app, that can be really powerful monetization. And a lot of people don't realize that free aps can make way more money and often do make way more money than paid aps, too. But we're gonna start with paid aps. P taps the price could be anywhere from nine nine cents to about a thousand dollars in us currency that khun change for whatever may be often if it's a paid app into no tyre quality people expect a certain amount of quality with a paid out for that one dollars right you get approximately ninety five percent less users than a free you're free app equivalent if you are number ten paid out first of number ten free app it's about ninety five percent difference a along the lines that I think apple asked earlier how do you how do you increase your price when you dio is ninety nine cents up to two ninety nine you're not going to see a huge difference in the amount of balaji you might see some but soon as you get to that three ninety nine there's usually a big cliff and what happens is for some reason there is a kind of segmentation of this is the central problem solver the one core function and then these are the high end anything after five ninety nine up to nine ninety nine are like well I better be impressed right and after two ninety nine if you're not doing that you just get kind of hit what and no ads you really paid up don't put ads in it's just that's that's going to kill your reviews free me maps they're free but you have the ability to monetize inside! Of the apse you get a huge download volume compared to paid aps it's absolutely fine to show at fact most people kind of expect to see as of some sort in a free app and you get way more data right? You could tell it I always come back to the data because it's it's such a powerful tool tohave and with a free app you may be will say well not making any money but at least I've get a lot more data a lot more quickly so that I know what to do next so this goes with freemium and you you monetize within our purchases for anyone who doesn't know that that means you go in and buy things within the app now similar what steve talked about do price drops and some sales when you go paid up to free or you go paid up to a lower price in that purchase to a lower price right external price jobs which means the cost of your app right in the app story goes from two ninety nine two free for everybody else out there that is an external price drop that is for increasing your downloads right that's forgetting the spike that steve got when you do internal price jobs it can increase your balance a little bit from word of mouth but that's increasing revenue per user that's having a sale that's your black friday right there, right? You're taking your existing users and finding new ways to make money off of them that's. It that's the difference between the two of them. Here's. An example, right. Minecraft is six, ninety nine. Once in a while, they might drop that down to three, ninety nine, and if you did, they would get. However, many excuse five ex users in the office, or they're already number one paid every day, so they might just break the absolute for all we know. Similarly, you might start seeing us if you have any of these games. Classic clan, slot, machine games, anything like that, and you start getting around the holidays around christmas, around valentine's day, around new year's. You're going to see a lot more of these a lot more of these big pop ups to come up.