Are you wondering how to generate revenue and ROI from your real estate mobile application? For this purpose, you must test different monetization strategies to identify which best suits your realtor business model. Now, how do you decide which mobile app monetization strategy you can implement for testing your realtor mobile application? In this blog post, you’ll discover six effective monetization strategies for your real estate app that you can implement within your real estate app to drive maximum ROI, attract potential clients, and elevate business growth. Let’s begin with a quick overview of why you need mobile app monetization.
Why Do You Need Mobile App Monetization
Apart from providing a comprehensive digital solution and seamless experience to property buyers and sellers through the real estate app, you need to make it a profit-generating source for your business. Mobile app monetization lets you convert your app’s engagement into revenue through different monetization models available.
Many users interact with your real estate app, but every individual criteria for utilizing the app differs. Some might like to first try the free version of the app and then select the upgrade version while other users may directly purchase the paid version, and so on. To learn more about this, let’s delve into the next section to explore the six effective mobile app monetization strategies.
What are the 6 Effective Real Estate Apps Monetization Strategy
While your real estate app developers focus on developing a robust application with advanced features, you need to work with business consultants and publishers to come up with a solid monetization strategy for your realtor app. Before that, you need to have a clear understanding of the purpose of your app, what solution your app offers, who your target audience is, and whether they’re willing to pay or not. Once you’ve got answers to these questions, proceed toward selecting the right monetization strategy from the below-mentioned ones:
- Freemium
This is one of the most popular and effective app monetization models that enable users to download the free version of the app with basic features, including property information & listing. After using the basic features, users may choose to unlock advanced features by choosing either the premium, in-app purchase, or subscription-based payment, leading to increased revenue generation. With freemium, you entice customers to upgrade to the premium version by offering them bonus points, discount codes, coupons, and much more. This strategy is useful for attracting a wider target audience both paying and non-paying ones, and encouraging them to download and share the app with their peers. Moreover, with access to standard features, no intrusive ads, and zero recurring fees, freemium emerges as the optimal approach to kick-start your app monetization.
- In-app purchases
As the name suggests, it’s the app monetization method that enables users to make purchases within the app, regardless of whether the initial download was paid or free. With in-app purchases, your real estate app user can purchase additional services or content within the app. This may include virtual property tours, premium market reports, advanced search filtering, property cost estimation tools, professional consultations, and more. However, there are 4 different types of in-app purchases, including consumable, non-consumable, auto-renewal, and non-renewal subscriptions. These additional offerings can enhance user experience and provide valuable insights and services tailored to individual needs. Ultimately, in-app purchases add significant value to your realtor mobile app monetization strategy.
- In-app advertising
In-app advertising is among the most popular monetization strategies employed by real estate app developers and publishers to generate profit. It’s done by collaborating with related service providers, such as mortgage providers, home insurance companies, or interior designers. These collaborators display their targeted ads within your real estate app to reach wider audiences and enhance their visibility through clicks and impressions while in return offering you a profit margin or revenue share, ranging range from as low as 50% to as high as 80%. Banner ads, display ads, video ads, native ads, and affiliate ads are a few examples of in-app advertising formats, with native ads often garnering higher engagement rates.
- Sponsored Listings
Partnering with real estate agents or property owners to feature their properties prominently in search results or as sponsored listings. When you highlight their property listing within your app, they in return pay you a subscription fee or commission. However, these sponsored listings typically appear at the top of search results or in designated sections. This monetization strategy is effective for generating revenue, enhancing property visibility, and attracting potential buyers or renters. Moreover, affiliate marketing can also be a choice in this category where you can earn commission by promoting or selling their product while generating income from the app.
- Transaction Fees
With the increase in digital wallets and online payments, customers now prefer performing secure property-buying transactions within the app. You can integrate secure payment options within your realtor app to help buyers and sellers clear their payments and deposits securely. Now here, you can take advantage of charging transaction fees on every transaction and generating significant revenue through it. For instance, you can charge a percentage or deduct a portion of the transaction amount as a fee whenever the customer performs a transaction. While this monetization strategy can generate significant income, it’s crucial to balance fees to ensure competitiveness and user satisfaction. Additionally, transparent communication about transaction fees is essential to maintain user’s trust and loyalty.
- Subscription Models
Each user’s budget and preferences vary, leading them to explore different subscription plans within the app that best suit their needs. However, subscription-based payment is an ideal approach to fulfill customer’s needs and provide a more tailored experience. Allow your users to select different tiers of membership or subscription plans, each providing varying levels of benefits and functionalities. For example, the premium user can get access to exclusive property listings, advanced filtering, and virtual tours, while real estate professionals, can access premium listings, market data, and advertising features. Subscription models can be monthly, annual, or even tiered based on the level of access desired. This monetization strategy helps you generate lucrative revenue while catering to the needs of different users.
Final Words
Now that you have a good understanding of mobile app monetization and the various strategies available, you can implement them effectively within your real estate app. With the six mentioned strategies, including freemium, in-app purchases, in-app advertising, sponsored lists, subscription mode, and transaction fees, you can generate higher ROI and sales. However, it’s crucial to thoroughly understand which model best fits your business and how to attract potential property buyers and sellers. Improve your earnings by testing these strategies and implementing the ones that generate more revenue for your real estate business.