Users continue to raise their expectations for online services and applications, and app monetization—how app creators generate revenue—is no exception. People expect their chosen services to adopt appropriate practices and prioritize transparency in disclosing how they earn revenue.
So, how do you ensure that people feel comfortable using your application and have no doubts about how you collect your own revenue? Let’s review some tried and trusted methods for monetizing applications and why some fall short when considering the ethicality of disclosure.
The Key Ingredients
App developers have plenty of ways to earn income from their applications. Many factors, such as the industry, market trends, targeted audience preferences, and creators’ resources, can play a role in choosing the best one. Whichever option wins, it’s necessary to implement two tasks: being transparent and obtaining user consent.
Making Monetization Ethical
Let’s see which monetization options and approaches for disclosing it might be the most suitable.
One-Time Purchase
If you monetize your app with a one-time purchase, people must pay money immediately to download and install the application. Such paid apps can be highly tempting to users, especially those growing tired of their many subscriptions. The one-time purchase means the user gets unlimited access to the app afterward.
However, some creators can follow more sneaky methods, like locking particular features within the app behind a paywall. Users must be informed of these aspects before the purchase to avoid misunderstandings leading to negative reviews.
Free Apps
Free applications are unique examples of how they earn money from their users. A typical example is advertisements that pop up while using apps. Adding ads can be ethical if creators don’t overload their apps with them. Additionally, it’s best to choose ad networks that focus more on users’ privacy. Lastly, it’s best to show ads customized to the app’s users, not precisely based on tracking users across apps.
Besides ads, free apps can make money through in-app purchases or by asking users to pay for extra features or premium access. One popular app monetization trend is offering users perks and rewards in exchange for sharing their unused internet bandwidth. This way of monetizing your app can be seamless and won’t require users to spend any money or sit through ads that disturb their app experience. However, choosing trusted services and being transparent about how this option works is crucial.
Subscriptions
Nowadays, most people have at least three to four subscriptions for services they enjoy using. Thus, there’s no denying that this monetization option is highly popular. This option can usually be ethical and accepted by users unless creators overcomplicate the process of ending subscriptions.
If you make canceling subscriptions unnecessarily difficult, users might become frustrated or disappointed by the time and effort it takes. This can leave a bad impression on your app and discourage others from subscribing, especially since people often share their experiences on platforms like Quora or Reddit.
Freemium
The freemium model means a specific application part is free, but the other is locked behind a subscription fee. Users can trust this option if creators clearly state how they earn money from the free user base. That might include ads that users can get rid of by paying for a subscription.
Conclusion
The ethical ways to monetize your application include following regulations, prioritizing user consent, and being transparent and clear about your practices. Thus, help your users feel comfortable using the application and have plenty of options to reject methods that might seem too invasive, such as data collection for purposes unrelated to the app.
