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monetization and business models
for mobile apps

rich fernandes

MobileDevNJ Meetup
October 12th, 2011
Union, NJ

    @itsrichf

    rich.fernandes@kapturem.com
agenda


     1   what is monetization and a business model?


     2   common mobile app business models


     3   non-traditional business models


     4   timing of monetization


     5   wrap-up
what is monetization?



       monetization = making money
                                     $$$
   is your mobile application just an app or is it a business?

   can I monetize my mobile app? is there an opportunity?
             just an app                             business
    alarm clock, checkers, notepad         foursquare, twitter, opentable
what is a business model?

   a business model is how you create
 value for your product and (potentially)
            generate revenue
examples of different types of business models in economy today:
     direct response model                        billy mays
     premium model                                maybach

     subscription model                           wsj
     franchise model                              subway
common mobile app business models
                                    who’s doing it?
  1   pay per download

  2   in-app advertising

  3   in-app purchasing


  4   freemium


  5   subscription

  6   service
non-traditional business models
                                      who’s doing it?
  1     incentivized downloads

  2     selling premium sdk


          what new business model will
           you think of for your app?

      custom in-app ads           selling content
      app rentals                 broker platform
timing of monetization (pay per download)

                                sell app for $.99 as soon as the app
                                           goes to market
 user base




             version 1.0 released                      constant monetization but
                                                        might not be an optimal
                                                            revenue stream


                                      time in market
timing of monetization (non-pay per download)


                                                       capitalize on user base
                                                        growth via alternate
                                                       monetization strategies
 user base




                                version 2.0 released


                                                           it’s time to start
                                                         making some money
                                                                  here

             version 1.0 released
                                                                 $

                                    time in market
wrap up

    pick the best monetization strategy for your app

    be open to explore disruptive, non-traditional models
    don’t be afraid of failure
    ensure your user base is large enough before
    introducing monetization (non-pay per download
    apps)
questions




            ?	
  

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Mobile App Monetization and Business Models

  • 1. monetization and business models for mobile apps rich fernandes MobileDevNJ Meetup October 12th, 2011 Union, NJ @itsrichf rich.fernandes@kapturem.com
  • 2. agenda 1 what is monetization and a business model? 2 common mobile app business models 3 non-traditional business models 4 timing of monetization 5 wrap-up
  • 3. what is monetization? monetization = making money $$$ is your mobile application just an app or is it a business? can I monetize my mobile app? is there an opportunity? just an app business alarm clock, checkers, notepad foursquare, twitter, opentable
  • 4. what is a business model? a business model is how you create value for your product and (potentially) generate revenue examples of different types of business models in economy today: direct response model billy mays premium model maybach subscription model wsj franchise model subway
  • 5. common mobile app business models who’s doing it? 1 pay per download 2 in-app advertising 3 in-app purchasing 4 freemium 5 subscription 6 service
  • 6. non-traditional business models who’s doing it? 1 incentivized downloads 2 selling premium sdk what new business model will you think of for your app? custom in-app ads selling content app rentals broker platform
  • 7. timing of monetization (pay per download) sell app for $.99 as soon as the app goes to market user base version 1.0 released constant monetization but might not be an optimal revenue stream time in market
  • 8. timing of monetization (non-pay per download) capitalize on user base growth via alternate monetization strategies user base version 2.0 released it’s time to start making some money here version 1.0 released $ time in market
  • 9. wrap up pick the best monetization strategy for your app be open to explore disruptive, non-traditional models don’t be afraid of failure ensure your user base is large enough before introducing monetization (non-pay per download apps)
  • 10. questions ?