How to sell a Mobile App or Game outside App Stores -
We thank Tony Markov for contributing to this article!
If you're unsure of how to sell an application direct to the consumer (D2C) beyond the app stores or searching for a fresh way to monetize your mobile app or game You may be wondering what possibilities you have.
Steep fees from platforms like those of Apple App Store and Google Play could create a need for developers of games and app creators to look beyond the ease of use and accessibility of traditional marketplaces for apps, but restrictions from the platform providers are making it difficult.
But, due to ongoing court cases and the development of new rules and laws The mobile world has changed.
There are more choices than you thought But where should you start?
In this post, we'll cover:
- App store policies in effect and prices.
- A variety of tools you can utilize to make money with games and applications outside of the app store.
- Highlights from recent U.S. and European legal reports that could impact game sales as well as app monetization.
What is the way mobile App Stores Function Currently
Making up the majority of smartphone OS's market share globally, Android with the Google Play Store as well as iOS using the App Store of Apple have enjoyed a duopoly over mobile software distribution as well as mobile app e-commerce all over the world. Although these markets are starting to open up and are becoming more accessible, it's important to know the framework that apps stores used to operate with.
There's a plus, since apps are widely used by nearly every person in the world with an mobile phone, their potential to draw new customers for your app, or players for your game is unmatched. Then, app stores allow easy and simple for users to download and pay for new applications and purchase through an app store they already trust, and by using the payment method they've stored to their account.
App stores make it easy for app developers to release their applications. They can also handle important transaction factors such as different payment methods and currencies, as well as fraud, tech support related to the transaction, and collecting and paying sales taxes.
But that ease of use comes at a high cost to the developers.
The Downsides of Monetizing via Major App Stores
Assuming your game or app can be accepted by the gatekeepers of the mobile app stores initially The complete absence of competitors means that the costs related to sales made through iOS as well as Google Play app stores are quite high -- typically at least 30%..
These fees are also applicable to purchases in game. That means, regardless of whether you decide to release a free app however, monetize it with in-app purchases, your players and users will still be burdened by paying steep costs to the app store.
The Fees are Passed -- Or the Savings -- to consumers
Certain apps are beginning to announce that at least a portion of high app store fees are passed on directly to the buyers, despite there are alternatives at lower cost instead.
Otter's Pro Pricing for 2023 Changes
Otter changed its pricing plans at the mid-point of 2023. the changes to pricing for package packages going into effect in the month of August 2023..
There was a notable Pro option: Paying for a year-long subscription on the Apple App Store or Google Play Store will cost users additional 10 dollars and will raise the cost by about 8% between $119.99 to $129.99 USD.
For users to understand how they could avoid paying this fee, Otter placed a green "Tip" box beneath on the Otter Pro pricing grid, letting users know they can "Learn how to change your Apple App Store or Google Play Store subscription to Otter through the Web ."
In order to address the pricing disparity more directly, the FAQ section at the end of the page states that the more expensive price through the app store "reflects the cost of additional fees to host the Otter.ai subscriptions both on Apple as well as Google's app stores."
It goes on to specifically recommend that users cancel their current Apple App Store or Google Play Store subscription and just renew their subscription on Otter's site..
The Increasing Trend in Player Account Purchases for Video Games
As with Otter, many game app developers are offering discounted prices to customers who buy out of the app using an account outside of the app that is linked back to the application.
Developers are able to advertise this kind of user accounts and discounts on their sites.
App devs make it easy for users to sign up by simply accessing the app from their phone, tapping an icon to register an account as a user, and completing registration.
Users can then purchase items from the website, and pay cheaper than for similar purchase through the app. (More about user accounts here.)
The List of App developers selling D2C will grow.
Although there are many advantages to selling games and apps through the iOS App Store and Google Play, the downsides on pricing and the limitations on distribution for games means that, the court case process continues and new rules open the market, more developers will be wondering how they can implement a D2C strategy for their app or game.
How to Sell Apps Outside App Stores
Even though Otter's app is downloaded via the Apple App Store or Google Play Store -- and Otter charges a more expensive price if users have to pay the annual Pro subscription through the stores -- there's still a lower-cost option for their users: Downloading the app through one of those stores however, paying for the subscription on the Otter's website by using a different service provider.
This model provides an illustration of the differences between disseminating apps through app marketplace, or making money from an app via app marketplaces.
Even if downloads of your application belong to proprietary stores, that isn't a guarantee that this is the sole option for customers to purchase the features or services you offer.
Here are some of the most important aspects to take into consideration before setting up your own revenue-generating option, outside of major marketplaces for apps.
Pick a Payment Provider
There are a variety of options available for payment services providers (PSP) and merchants of record (MoR) available that you can set up to take payments outside of device-captive app stores.
But there is a key differentiator between payment services companies and merchants of record.
A PSP helps businesses sell products by providing the specialized services and connections needed for this (such for connecting payment processors, payment gateways, and a merchant account).
An MoR like does all that and is able to take on significant responsibilities like ensuring that cards brand regulations, regulatory laws in a variety of countries, risk, sales taxes and VAT, and more. This includes the calculation, collection, and remitting taxes.
Why Not Just Pick a Lower-Cost Solution Like Stripe?
Stripe has multiple upgrades available to cover some of these gaps, but each upgrade is going to increase the price anyway.
Users Accounts
For the purpose of connecting purchases from your own checkout option and the app you downloaded via an app store, you'll require a user account system to allow users to monitor the details of their transactions and also receive credits for their purchase.
Users' accounts allow them to purchase items outside their App Store and Play Store, then sign into the app to see the purchase credited in the app.
If you're a customer of ours , we also provide customers with customer support in the event that there are any problems with their purchase or their purchasing account, we'll on hand to help.
The purchases that are tied to accounts of users typically take the form of in-app currency or subscriptions.
In-App and In-Game Currency
To make your app monetizable using in-app or in-game currency, the currency is purchased using real money on your site and then redeemed inside your application for products, features, etc.
In the case of several games on mobile devices, the apps use an in-game currency that includes gems, coins, gold, or a special fictional currency which players are able to redeem for bonus points within the game. The currency can usually be bought as a package, which include exclusive pricing on the web if users leave the app and buy straight from the website of the developer.
Subscriptions
Rather than individual purchases as needed, you may prefer offering access to your app (or its premium features and services) by way of a subscription often available monthly or yearly.
Apart from a freemium plan the Otter's plans are also available as monthly or yearly subscriptions.
Updates and Items
Items and upgrades are yet another option to package your app and monetize your app. They can work independently of other options such as subscriptions and currencies in-app, or may work together to them.
In the case of Otter, which offers an unpaid version of their service (either on the web or through their application) Upgrades such as additional transcription time teams, collaboration with colleagues, and advanced export options help incentivize users to subscribe to their Business and Pro plans.
For gaming apps, the possibilities are virtually limitless with exclusive items, characters as well as power-ups in order to encourage players to buy on the site and then redeem within the application.
Legal News Re: App Revenue and Monetization
If you're unfamiliar with the recent and ongoing legal issues that may affect both Google and Apple's online stores in some manner it's been a few across Europe and the U.S. and Europe alone.
HTML0 is the Digital Marketing Act (DMA)
Epic Games' Lawsuits
After Epic Games used discounts to incentivize Fortnight users to use discounts, and encourage Fortnight users to make use of another payment option rather than the app marketplaces that both Apple as well as Google then took Fortnight from their marketplaces in 2020. Epic Games then separately sued both Apple and Google.
In the Google case, appeals also are ongoing, but a December 2023 ruling found in favor of Epic in every aspect.
State-Led Cases
Partner With
