There are three common options for monetizing an app – asking customers to pay upfront, hoping customers will buy upgrades, and ad revenue.
Amazon is now giving Android developers a third option – a 6% commission on sales that come in through their app.
The Mobile Associates API for Kindle Fire and other Android devices, allows developers to sell almost anything Amazon carries from inside an app. Amazon Prime customers will get their free shipping and everyone can use the 1-Click system to buy. That means the customer doesn’t have to deal with lengthy check-out procedures on their phone. Since their credit card and shipping information is already locked into Amazon’s system, 1 click is all it takes to spend anywhere from $5 to $500.
So. . . how can developers use this new money-making tool?
Mike George, Vice President of Amazon Appstore, Games and Cloud Drive has a few examples:
“Imagine a developer of a nutrition and fitness app can now offer their customers the ability to purchase vitamins, supplements and fitness gear within the app, directly from Amazon.com. It offers the customer a more relevant experience and provides the developer with a new source of revenue.”
Amazon also suggests bundling. When a customer buys a physical item, they get a digital one, too. For example, Animoca has a game called Thor: Lord of Storms. When a player uses an in-app link to buy a Thor replica hammer, they also get a virtual, magic hammer to use in the game.
I say again. . . nice. This is a great way to encourage more interaction with the game, offer loyalty bonuses and get your affiliate dollars, too.
Amazon also mentions the personal assistant app Springpad. The whole purpose of this app is to give you more information about whatever it is you’re doing. Save a movie, the app finds out when it’s playing at the theater. Now, the app can give you a direct link to the DVD when it comes out. Or link you to DIY books when you’re remodeling your kitchen. Or hook you up with a deal on a cozy sweater when you save photos of fall clothes on the app.
The possibilities really are endless.
Seriously, I want to learn how to build apps.
If you already know how to build apps, here’s a link that will show you how to implement the program.
And here’s a cute video that explains everything I just said but with pictures.