We know you’re seeing plentiful apps and mobile products on the app store without any monetization. Does it seem to you too that they aren’t looking to make money? And you’re right; they are not interested in hauling out cash from their customers yet.

1. THE NEW WAY TO MONETIZE YOUR
APPS!

2. THE NEW WAY TO MONETIZE YOUR APPS
 We know you’re seeing plentiful apps and mobile
products on the app store without any monetization.
Does it seem to you too that they aren’t looking to
make money? And you’re right; they are not
interested in hauling out cash from their customers
yet.
 The method they use for monetization is called
‘differed monetization’ which means ‘not monetizing
your product instantly’. Though used widely now, it
has its own positives and negatives.

3.  An important thing to remember is that it’s not ‘no’
monetization but just a differed type of it. Having
provided the product strategy on many of these
models, we have got some tips about how you can
use it.

4.  Capital is Essential
There is no revenue without monetization. A working
capital is required to sustain the organization. It is
recommended to set aside an amount of capital to
draw down on anything that comes on your runway.
Any expense that comes in is to be drawn from this
account.
 Your Plan
It’s a method that is to be used until a pre-defined
point. At the idea conception stage itself, you need to
consider how you will monetize your app. WhatsApp
for this matter is a big example- they used this model
and it resulted in an acquisition of $19.

5. SET YOUR GOAL
 You need to know when to turn on monetization and it is
highly recommended to set a goal for it. The goals (or
boxes we say) fall in a few areas:
 Time Box: How much time can you spend on the
product? How long will it take to monetize the product,
how long can you afford to wait till your capital expense
account expires? Set a deadline.
 Cash Box: Set aside some capital for expenses and
forecast your gross ‘burn’ rate which is the amount of
money you spend every day or per week or per fortnight
or per month.
 User-Base Box: If time or cash isn’t a constraint, then
user-base definitely would be. You need to get a
majority of businesses on board before your product is
viable. If there is a certain number you need, consider
targeting for it.

6. KNOW WHEN TO QUIT
 When you get to the point that your cash, time or
the user base goal is achieved or you have burned
through your cash, you have two options available:
 Extend your Runway: You simply add more money
to your expense account. This prolongs the amount
of time you have to attain your goals. You can
utilize venture capital, crowdfunding or even debt
funding- whichever you choose, it extends the life of
your startup.
 Wind it Up: Try and analyze why you couldn’t hit
your goal. At least you gave it a shot, so don’t be
disheartened!
 Wanting to get an application created by experts?
Visit the website here.