ZDNet blogger Ed Burnette recently posted his interview with Gregory Kennedy, director of global marketing at the mobile ad network InMobi, in which Kennedy outlined how mobile developers can turn a good idea into a profitable one:
There are four-and only four-ways to make money with apps. The most obvious is through paid downloads, in which you set a fixed price for your app, customers purchase it, and the transaction usually ends there. You could also seek an exclusive sponsor for your app. It's not the most economically sustainable method of monetizing, but it might help you establish yourself enough to make your next app a success. Then, there are the increasingly prominent in-app purchases, in which your customer might not have to pay anything at the beginning ("freemium"), but will have the opportunity to make purchases within the app to enhance the experience.
And finally, you can sell advertising space within your app. Provided you have a good match between app and advertiser and an installed base large enough to support the volume of impressions needed for profit, this can actually make you more money than you can with a pay-per-download model. I always recommend developers mix and match models to their particular app business. The more monetization strategies you can employ, the more money you will earn.
Related reading on TechRepublic
- There's gold in those hills (or valleys)
- Turning The Smurfs into gold without using magic
- Eight ways to get more eyeballs on your app
- Find an audience for your app in online forums
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Mary Weilage is a Feature Editor for CBS Interactive. She has worked for TechRepublic since 1999.