This presentation gives an overview of ways you can make money with your mobile app. Almost 100% of app owners in Bangladesh are offering their apps for free. Globally, most app owners operate on the "fremium" model. Other monetization models app owners can think about include: 1. Paid, Free, Fremium 2. In-App Purchases & Virtual Goods 3. Subscription 4. Telco Partnerships 5. Direct Sponsorship 6. Ad Network 7. Commissioned-to-Build 8. OEM & Royalty deals

1. App Monetization Overview
From G&R:
Bangladesh’s Only Mobile App Ads Partner

2. App Monetization - Things to Think About
1. Paid, Free, Fremium
2. In-App Purchases & Virtual Goods
3. Subscription
4. Telco Partnerships
5. Direct Sponsorship
6. Ad Network
7. Commissioned-to-Build
8. OEM & Royalty deals

3. 1. Paid, Free, or Fremium?
Model Cost to Download Revenue Through...
Paid $0.01 - $1,000
From original payment
for download
Free Free Ads
Fremium Free
Extra charges for
features, virtual goods,
and in-game currency

4. 1. Paid, Free, or Fremium?
Model Example App Cost
Paid Switft Key $4.99
Free Angry Birds $0
Fremium Dragon Age $0
In-app purchases up to
$99 !
3rd party ads on
pause screen

5. Freemium apps
generate over
92% of total app
revenue
http://www.dazeinfo.com/2014/04/15/mobile-app-revenue-growth-2013-freemium-apps-report/#ixzz2z1V1voxX
Paid apps
experienced a 29%
decline in app
revenue in 2013

6. But in
Bangladesh,
almost 100% of
apps are Free

7. 2. In-App Purchases & Virtual Goods
Single-Device Items (in-
game currency)
Multi-Device Items
(premium game “unlocks”)
Can only be accessed on
the device from which they
were purchased
(ex: coins, stars)
Can be accessed on all
compatible devices
registered to your account;
no need to buy again
(ex: magazine issues)
VS

8. 2. In-App Purchases & Virtual Goods
Single-Device Purchase: GEMS
Note: Gems are the ONLY items purchasable in-app and
Clash of Clans is one of the MOST profitable apps of all time
Multi-Device Purchase:
Magazine Download

9. 3. Subscription
How it Works...
What
Weekly, monthly, or annual subscription fees for premium
content
Price
Set lower than one-time purchase price to incentivize users
into longer term commitment
Tiered subscriptions allow you to set different prices but with
ceiling on both price and consumption
Benefit Guarantees repeat transactions

10. 3. Subscription
1 month: $5
1 year: $45
Savings: $15
Free Features Premium Features
• Monthly uploads of 60 MB / mo
• Online notebooks only
• Text and handwritten recognition
• Others can view notebooks but not edit
• Attach files such as .PPT and .PDF
• Monthly uploads of 1 GB
• Offline Notebooks
• Note history
• Faster image recognition
• Hide promotions
• Top priority support
• Allow others to edit your notes
• larger files, bigger notes
• Single note size increased to 50 MB
• Pin lock for extra security
• PDF search option

11. 4. Partnering with Telcos
How it Works...
What
Partnering with Telcos means integrating your app with
Telco APIs
Pros
Bill through mobile balance accounts, access to unique telco
data & services
Cons
Integration limited to one Telco at a time, APIs are limited,
partnership process can be cumbersome

12. 4. Partnering with Telcos

13. 5. Direct Sponsorship (Ads)
How it Works...
What Brands sponsor apps in exchange for featuring company logos
Pros
• Developers have more control over screen space
• Guaranteed income not based on customer interaction
Cons
• Must have dedicated sales team out looking for sponsors
• Typically produces an upfront shot of income, not a
sustainable income month after month

14. 5. Direct Sponsorship (Ads)
In 2011, Subway sponsored
the special New York City
Marathon app
Their sponsorship allowed
them to include Subway
locations on the race map
with links to special offers

15. 6. Ad Networks
How it Works...
What
Ads from external advertisers show up in
pre-set places in app
Pros
Very low effort on your end and a check
every month from the ad network
Cons
Ads may decrease usability / user
happiness

16. 6. Ad Networks
International Local

17. 7. Commissioned-to-Build
How it Works...
What App-making on contract
Pros
Often very large paychecks and set work
hours
Cons Developer has no creative freedom

18. 7. Commissioned-to-Build

19. 8. OEM & Royalty Deals (App Comes on Handset)
How it Works...
What
Partnership with phone company to include
app on all phones
Pros HUGE reach
Cons
Very difficult to make these connections,
see partnership through to paycheck

20. 8. OEM & Royalty Deals (App Comes on Handset)
Samsung Galaxy Built-in Apps
KNOX PS4
payView S Health 2.0

21. Lutfi Chowdhury
Sr Manager Business Development
lutfi@gandr.com.bd
Thank you
For G&R Case Studies visit:
http://www.green-red.com/clients
Green and Red Technologies Limited
House 70/B, Road 21, Block B, Banani, Dhaka 1213 , Bangladesh
Alyssa Ransbury
Head of Operations
alyssa@gandr.com.bd