Interview With Rajib Roy, CEO Of Royex Technologies, Decoding Strategies For Mobile App Monetization
With the app market becoming increasingly saturated, monetizing mobile applications is a critical challenge for developers and entrepreneurs alike. In this interview, Mr. Rajib Roy, founder of Royex Technologies, will provide valuable insights into proven monetization strategies that can help ensure the success of your mobile apps.
Mr Rajib holds a Bachelor's degree in Electrical Engineering and a Master's degree in Computer Engineering. An accomplished author with multiple tech books to his name, he has been at the helm of Royex since its establishment in 2013.
Mr. Rajib has been successfully running a tech company in Dubai for the past 10 years, during which he has encountered numerous challenges and triumphs. He's not only witnessed the ever evolving technological trends, but has also expertly adapted to them, steering his company through various industry shifts. His journey is a testament to his resilience and adaptability, qualities that have defined his leadership. His perspective on mobile app monetization strategies promises to provide all of us with invaluable insights, drawing from his rich experience in the ever-evolving technology landscape.
Q. Mr. Rajiv, we often hear that there's an app for everything nowadays. Despite this, new apps continue to be developed. Could you shed some light on the types of apps being developed at Royce Technologies?
Absolutely, there's no limit to the types of apps being developed. Despite the saying that "there's an app for everything," we're still developing a wide variety of apps. There isn't a specific type of app we focus on, we develop whatever ideas our customers bring to us. Over the years, we've created a significant number of applications, reflecting the diverse needs and innovative ideas our clients bring to us.
Q. What would you say are the key factors for success in app development, particularly when it comes to monetization?
The success of an application depends on several factors. Many startups come to us with good ideas and some initial funding. However, about 40% of companies struggle with app development, while 60% manage to launch. Post-launch, they face two main challenges: lack of virality, where the app is perceived as a copy of existing solutions; and ineffective monetization, where there's a mismatch between how companies want to earn money and how customers are willing to spend. It's crucial to have a clear understanding of the target audience and how to monetize effectively.
Q. So, how do you determine the most suitable monetization strategy? What factors should be considered?
The type of application and the target audience are critical factors. We consider several factors: the type of application, the target audience, and the nature of the product or service offered. Different apps require different approaches. Some may be suited for one-time payments, while others might benefit from subscription models. For instance, a fashion app might use a freemium model where users can browse products for free but pay for purchases. For service-based apps, a subscription model might work better, where users pay a recurring fee for continuous access to the service.
Q. Can you provide examples of successful monetization strategies?
Certainly. One popular model is the freemium model. Users can download and use basic features for free, with premium features unlocked through in-app purchases. This model works well for many types of apps, from gaming to educational apps because you don't pay commissions to app stores.
Another effective strategy is in-app purchases which is ideal for e-commerce and product-based apps. Users select and pay for products within the app.
Subscription-based models are suitable for services requiring continuous access. We recommend offering flexible, shorter-term subscriptions to increase user comfort.
There are also hybrid models, combining different strategies. For example, an initial setup fee followed by monthly subscriptions, or offering discounts for longer subscription commitments.
Lastly, ad-based monetization, where you show advertisements within the app, can be combined with other models.
Q. How flexible should companies be with their monetization strategies? Are there any examples of clients who had to change their monetization strategy midway?
Very flexible. I can share an example of a client in the educational sector who adapted their strategy. They started with a standard subscription-based model but found users weren't confident in subscribing without trying the content. We helped them implement a freemium model, offering a few free videos, implementing ad-based revenue for non-paying users, and providing an ad-free experience for subscribers in order to build user confidence and introducing ads for additional revenue. This approach increased user engagement and subscriptions.
Q. What factors should entrepreneurs consider when choosing a monetization model?
They need to understand their target audience and spending habits, align with their business model and profitability goals, consider payment gateway fees and cash flow, and look at industry-specific trends. For example, gaming apps often use upfront payments or freemium models.
There's no hard and fast rule. In our kickoff meetings, we try to understand the business goals and suggest appropriate models. It's also important to consider factors like payment gateway commissions and cash flow.
Q. How do you address the challenges of changing a monetization strategy once an app is live?
It is possible to change strategies after launch. For example, you can introduce new monetization options like ads or freemium models. It's important to communicate changes clearly to users and ensure a seamless transition to avoid disrupting their experience.
Q. Lastly, what strategies would you recommend for quick success and revenue generation?
For achieving rapid success and revenue generation, I recommend focusing on in-app purchases and subscription models. Subscriptions, in particular, provide a predictable revenue stream, allowing businesses to forecast income more accurately. In addition, understanding the app's purpose, the target audience, and the expected revenue model are crucial. It's also important to remain flexible and open to adjusting strategies based on user feedback and market trends. As you can see, there are numerous models and strategies available for monetizing mobile applications. Each has its benefits and can be tailored to fit the specific needs of the app and its users.
In this enlightening discussion, we understood that monetizing mobile applications involves considering multiple factors, including the type of app, target audience, short-term versus long-term goals, and market trends. The key to success lies in understanding these factors and being flexible enough to adapt strategies as needed. By carefully selecting and implementing the right monetization model, app developers and businesses can maximize their chances of success in the competitive mobile app market.