The infographic above illustrates that while subscription-based revenue for mobile apps is in the minority, it is better than 2.5x more effective than ad-based revenue models. Forbes Digital Commerce enables mobile app developers to adopt a subscription-based revenue model for your app and enables in-app catalogs for in-app purchases, upgrades, and more. Today, I want to focus on why the subscription model can work better for you over most other revenue models.
It can be stated that the subscription model is not always the best, particularly if you know that the lifespan of your app is short – like simple games and event-based apps. Heavily niche-oriented news and utilities, games with lots of content and strong replay value, are well-suited to the revenue model.
Subscription revenues have numerous benefits:
A few points worth elaborating upon.
Let’s look at the big MMO’s. Many of them sell their game outright AND charge a monthly subscription rate. With previous PC versions, the software itself might sell for $60, but with a $10 or $15 monthly subscription, they are making $120 or $180 more each year – with lifetime value sometimes running several years. Obviously the price points on the Mobile side need to be lower – and there is heavy competition to go “freemium.” The subscription model is still worth considering if you are able to create an “overwhelming value proposition.”
Really, I find the MOST CREATIVE efforts at achieving “Overwhelming Value Proposition” in the Crowdfunding niche. I would strongly recommend reading through what others are offering in their crowdfunding projects to attract revenue for their “project that does not yet exist” that you can apply to your existing apps, products and services.
I’m going to close with this – take a look at Forbes Digital Commerce. Opera Mobile Store is partnering with them, you can use your apps with FDC’s API in our store. The subscription revenue model is not to be ignored. Opera Mobile Store has adopted the same model in conjunction with Mobile Carriers. The two are different, but the principals are the same.