This document discusses different business models and monetization strategies for mobile apps. It begins by defining monetization and business models, then outlines common models like in-app advertising, purchases, freemium, and subscription. Non-traditional models like incentivized downloads and premium SDKs are also covered. The timing of monetization is addressed, noting the tradeoff between early monetization through pay-per-download versus optimizing revenue over time from a larger user base. The document wraps up by advising app creators to pick the best strategy and explore new models, while only monetizing once the user base is large enough.

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
?