How do I monetize an app?

[Obiwan]

Thanks Fastlane Forum for approving my account. This will be my first post and I apologise up front if it’s a bit long. I need some advice but first I need to elaborate on what I have done so far.

First off, through a family friend I became aware of a possible amenity I could offer with a mobile app. So I did some research:

1. There are billions of people worldwide in the target market.
2. 22% of the target market earns in excess of $1 700 per month
3. I did my cash flow spreadsheet on getting ½% of the 22% in the first year
4. It’s more of a necessity than an amenity
5. Bummer, there are dozens of app’s that offer the same amenity
6. Or do they?

On closer inspection it became obvious they all suffered from the same flaw, a flaw that I could exploit! They all offered a way of doing something, but never showed the actual result of what they were doing. I am being deliberately obtuse here as I don’t wish to expose my advantage.
So, what did I do?

1. Well, first of all, if you read my profile, what I thought was my business was actual my job, thanks Fastlane, and secondly, I just got fired from my job, i.e., no job, no income, no money just a bunch of assets that are worth half what I thought they were worth.
2. So to the war room, draw up a rudimentary business plan.
3. Write a Non-Disclosure, Non-Circumvention, and Non-Competition (NDNCNC) Agreement.
4. Write a Profit Sharing and Copyright Assignment (PSCA) Agreement.
5. Design the look and feel of the app.
6. Find an app developer that has a good track record, get them to sign the NDNCNC agreement.
7. Then get them to write the app for a percentage of profits.
8. Let the app developer suggest a percentage, good, it was far less than what I would have been prepared to pay, and get them to sign the PSCA.
9. Do the same with the marketing video-producer.
10. Get sporting personalities and organisations to endorse the app.

All achieved, except item 10, still working on that.

Now this is where I need help. How do I monetize the product?

I would like to charge a usage fee, say 50ȼ each time the app is used. The average user should use it about 150 times a year. But I don’t know how to collect the usage fee, and I do want it on Play Store.

If I can’t charge the user each time the app is used, maybe I can charge an annual subscription fee. How much should the annual fee be? I thought $12 a year. But how do I collect the annual fee?

The easiest option is a one-time fee through Play Store. How much should I charge? Once again I thought $12.

So, can anyone suggest, how much should I charge?
How I can make this into a recurring fee?
Obiwan

 

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[luniac]

I hear split testing is the professional way to go.
Google Play has that functionality built in for developers.

 

[Obiwan]

I hear split testing is the professional way to go.
Google Play has that functionality built in for developers.

Thanks, I will check that out and let you know the results.

 

[Obiwan]

Thanks, I will check that out and let you know the results.

Hi Luniac, I checked out split testing, but it doesn't answer my question on either, having an annual fee, or charging per usage. However, I will use the technique of split testing to determine best landing page. So, thank you for that.

 

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[minirich]

Welcome to the forum.

You are on the fastlane!

Have you tried to search the forum for "monetize" or similar words.
There are for sure some people on the board that know that topic very well.

 

[Obiwan]

Welcome to the forum.

You are on the fastlane!

Have you tried to search the forum for "monetize" or similar words.
There are for sure some people on the board that know that topic very well.

Welcome to the forum.

Thanks, I did try to search on "monetize", but they are all trying to monetize a website and not an app. What I would ideally like is that every time the app is used to supply the service that the app offers they get charged 50ȼ, but that would entail setting up some way to debit their credit card, so I have decided to forego that idea.
Just writing in this forum has forced me to think "outside the box", I will go for an annual subscription, with the second and subsequent subscription being half the initial subscription. Still not sure how I'm going to do that. Any suggestions anyone? I think I'll try Google Play, see what they say.

 

[Obiwan]

Woops, Sorry I posted this under minirich

Thanks, I did try to search on "monetize", but they are all trying to monetize a website and not an app. What I would ideally like is that every time the app is used to supply the service that the app offers they get charged 50ȼ, but that would entail setting up some way to debit their credit card, so I have decided to forego that idea.
Just writing in this forum has forced me to think "outside the box", I will go for an annual subscription, with the second and subsequent subscription being half the initial subscription. Still not sure how I'm going to do that. Any suggestions anyone? I think I'll try Google Play, see what they say.

 

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[minirich]

Woops, Sorry I posted this under minirich

BTW you can edit your posts, i think up to three days after your initially posted them.

 

[Obiwan]

BTW you can edit your posts, i think up to three days after your initially posted them.

I didn't know that!

 

[luniac]

Hi Luniac, I checked out split testing, but it doesn't answer my question on either, having an annual fee, or charging per usage. However, I will use the technique of split testing to determine best landing page. So, thank you for that.

oh i thought you could charge 2 different prices as well and then see which one gets most conversions. Anyways cool.

 

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