How to Build Freemium Apps: Discussing Monetization Ideas 

Developers spend a significant amount of time bringing new ideas to life. Yet, another project milestone is introducing a way to sustain it. Monetization can be a headache, with many developers turning to the freemium model. 

The main attraction of this option is reaping the benefits of subscription-based payments. However, it also offers the opportunity to have a free user base and generate revenue from them. How do you go about introducing a freemium model into your application? And what could be some solid alternatives for app monetization? This guide discusses both topics and gives tips to ensure stable income from your project. 

What’s a freemium model? 

A freemium app is an application that users can download and use without paying anything. However, the app also has a premium version, unlocking additional features or lifting certain limits. 

For example, an app that provides workout plans and regimes could allow free users to access workouts for two days. If you wish to see more, you should sign up for a monthly or yearly plan. 

Additionally, free users could unlock premium features for a limited time by watching ads or sharing their internet connection. How an app handles this is highly customizable, but certain methods have become popular on the market. 

So, the free version is meant to pique users’ interest and motivate them to upgrade to paid plans. 

How to make your app freemium 

Finding a seamless way to build a freemium app requires several steps. 

Find the main attraction

A freemium application must be functional and serve its main function. Thus, you should clearly define the purpose of your application. Then, the basic service can be provided to users without any cost. 

However, it is important to consider the purpose of freemium applications that can be significantly boosted through the premium version. The basic functionality should be free, but users should consider premium plans worthwhile. 

What comes free

The main strategies for what is free and what is charged depend heavily on your app. However, we can illustrate popular approaches. 

First, let’s imagine an app that lets you listen to millions of songs. The free version could offer this access, yet ads play between songs. Premium plans bring an ad-free experience or may also introduce higher audio quality. 

A storage service could offer a certain amount of storage for free. You must also go for premium plans if you wish to have more. A more complex example is an instant messaging application. A free version could offer mostly all the features. Still, premium unlocks the entire message history and more integrations with other apps. 

Through these examples, it should be easier to imagine which part of your application introduces the core functionality. Your best bet is likely to be building the free and premium plans around this. 

Follow analytics 

You must track your free and paid users. For this, turn to different analytics tools. They will help you see how your users find your app and user engagement metrics and conversion rates. 

Also, you can perform various A/B tests to polish your pricing models and experiment with different options. Overall, analytic tools are the key players in your app’s success. Only by following these numbers can you see the areas for improvement. 

Focusing on user experience 

While your main goal might be to turn free users into paid ones, it does not mean that you should diminish their experience. The app should be perfectly usable at no cost. Thus, finding the balance is crucial, and most of the efforts involve intuitive design ideas. They should nudge users towards paid models but keep them from disrupting them. 

Additionally, try to offer only a little to free users. After all, if they can fully enjoy your app at no cost, they won’t feel motivated to upgrade. 

Safe payment process

Users should feel comfortable upgrading to premium plans. Integrating payment methods that most users recognize is important. Unfamiliar options might make the app appear sketchy. Add multiple payment options for the best experience. 

Different monetization ideas 

Depending on your app and preferences, you might use different monetization strategies. For example, in-app purchases could be the main focus of your money-making goal. Ads are also a popular and powerful addition to apps. 

You can also try SDK (Software Development Kit) to simplify monetization processes. An SDK means that you add pre-made components to your application. They bring you certain functionality, like ads or other monetization options. 

Also Read: Securing Financial Data: The Role of Password Managers in Financial Services

Conclusion

Overall, a freemium model can work for many apps. All you need to do is find your app’s core value. Offer the basic function to free users and lock additional benefits behind premium plans. So, clearly define which features users can enjoy for free and what improvements they can enjoy after upgrading. Lastly, keep track of your performance and always look for ways to boost your revenue!