App monetization has always been a hot topic among developers. Some people still prefer one monetization strategy over another, and then some pull into some other direction.
However, in-app purchases seem to be the preferred monetization strategy for quite some time. At first, many thought it is just a trend that won’t last for too long. But soon enough, it became apparent that the in-app purchase feature is here to stay. Nowadays, in-app purchases are a big part of both Android and iOS apps. Additionally, developers can opt for HUAWEI in-app purchases.
But regardless of the platform, developers prefer in-app purchases because of the same reasons. Here we will list the most common reasons why so many developers choose in-app purchases to generate income from their apps.
1. Free is always appealing to the masses. People almost by default choose free over a paid one unless it is a product/game/app from a brand they love and cherish. That means it is much easier to earn plenty of new users relatively fast. The free part is the hook, the thing that makes people engaged, coming for more and more content.
2. There is no limit to how much they can charge for their digital or physical goods. Furthermore, there is no limit to all the items, services, and goods they can list for sale. With every new update, you can add new items that can be sold to the app users.
3. Just because they have in-app purchases, it doesn’t mean that they can’t also introduce a subscription method. That’s as long as the developers believe that there will be enough users that will pay a subscription. Paid subscription plus in-app purchases can be a great combination that will generate even more income.
4. In-app purchases are very user convenient. There are no long forms to be filled. Typically, the purchase is completed with just a few taps. Once you enter your preferred method (credit card or payment processor), you won’t be asked about it again, as all that will be on auto-pilot mode.
5. In-app purchases present the perfect gateway for pushing other features and consumables. Plus, you can follow how each of the goods you sell is doing, which ones are sold better, and which ones not. That means you can easily make adjustments in both price and the key features of the goods you are trying to sell. All with one purpose, to sell more of your goods at the best possible price.
In-app purchases can generate significant revenue if appropriately managed. App users seem to resonate well with this feature. At the same time, there isn’t any competing solution that will compete with this monetization method, at least nothing on the current horizon. Because of that, it is fair to expect that in-app purchases will remain relevant beyond 2020 as well.