I have developed a prototype and soon will be developing MVP. The problem I am solving has two users a corporate sector and second end user. I have a subscription model for corporate users but could not figure out end user monetization model. The end users are students and initially, my MVP will be based on students because the corporate solution is quite big and can’t be developed without an investor. To gain initial traction and prove my idea I decided to develop MVP on student solution which is a small part of the whole solution. I just want to figure out what should be the monetization model for a student app. I want to offer free service because students are always tight on budgets and students love free resources. If I offer free service how should I make money to manage the app?
There are several models you can opt for.
Freemium: With this model app publishers offer mobile users to download apps free of charge to use with a limited set of features and charge them via in-app purchases for premium features, additional content, or digital goods.
In-App Purchases: One of the app monetization strategies that is particularly relevant to mobile games only is in-app currency. A typical example would be offering a mobile game users to buy via in-app purchase a set of coins for them to use in the game, e.g.
Quoting Apple's description of the Subscription model: Auto-renewable subscriptions give users access to content, services, or premium features in your app on an ongoing basis. With this model, app developers can offer multiple plans with options to upgrade, downgrade and crossgrade . The major feature of this model that appeals to users is that with Subscription model developers can offer a discount for a long subscription period.
Affiliate Marketing and Lead Generation: Such time proven monetization strategy as affiliate marketing can be yet another way for app developers to monetize their mobile inventory. In a nutshell, affiliate marketing for mobile apps is about being rewarded with a commission fee for every instance when a mobile app was downloaded or specific action was taken with an app via the link placed inside your app. To make it work for you app monetization strategy, you need to choose what specific apps to promote inside your application, apps that can compliment your app for your users experience.
You can read more here: https://www.businessofapps.com/marketplace/app-monetization/research/app-monetization-models/
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Well done for what you have done so far.
It really depends what the service is that you're providing. There's the common advertising model (advertisements/ commercials on the app), or you could use the premium model (the students pay for added value features). Lastly, you could also add in-app purchases. But again, it really depends what the specific service is. Maybe students would agree that their basic info gets shared with companies selling the relevant service, in which case your business model would be leads.
Lots of options...
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By definition, monetization model means … is how you get from “not collecting money” to “collecting money”:
Base on your description, will this be too early as the MVP is not yet out and we don't have subscribers. We can design a monetization model when you have a reasonable size of free subscribers.
If you wanted to test whether your MVP can fetch some income, you should charge a subscription on your MVP to see people want to use it or not. Here we refer to this as designing the revenue model. - I believe you are at this stage.
The monetization model and revenue model are different strategies we should avoid using them loosely.
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