Episode 1: App monetization, Instagram and Snapchat

Is Instagram the new Youtube?
Is Snapchat the new Shopify?
How can you earn money with apps?
Found out answers to those questions in our very first episode!

Vasily Malyshev



Starting today each Monday we’ll publish our new show: 5 Minute Week. It will summarize most important news that happened last week and also will briefly explain some of the important concepts.

Today we will first go over some important news and then go into discussing all the ways you can monetize your app and earn money.



  1. Snapchat releases Snap Kit.
    1. Allows developers to integrate their apps into Snapchat and vice versa.
    2. Makes it easier to shop right from Snapchat.
    3. Source: https://thenextweb.com/apps/2018/06/15/snap-kit-could-turn-snapchat-into-the-next-mobile-marketplace/
  2. Instagram videos
    1. Instagram goes all-in on longer videos in an effort to shut down YouTube.
    2. Instagram has just unveiled a new app called IGTV that allows users to post long-form videos up to 10 minutes in length for the average user, and up to an hour for the platform’s superstars.
    3. Will Instagram become the new Youtube? We’ll see!
    4. Source: https://thenextweb.com/apps/2018/06/21/igtv-is-instagrams-answer-to-youtube/

App monetization


Generally speaking there are two main options how you can monetize your app: your app can either be FREE to download with something that makes money inside or it can cost something to download.

Around 80% of apps are FREE to download.

Why make an app paid:

  1. Well known brand
    1. Historically EA Sports
  2. Got featured by Apple
    1. Huge boost in downloads
  3. No competition / monopoly
    1. Where else are they gonna go

Is using Paid App + Paid Additional Features a good idea?

    • Limit feature sales
      • Need to have extraordinary value to upsell
    • User feels overcharged which leads to bad reviews

Main categories of free apps monetizations:

  • Ads/sponsorships/partnerships
    • Connecting to an ad platform that shows ads
    • Finding your own sponsors
  • Consumable & Non-Consumable
    • Consumable: something you consume after you buy and need to buy again to have it.
      • Example: coins in games.
    • Nonconsumable: you buy it ones.
      • Unlocking additional features in apps.
      • Trial version has ⅗ features. Need to pay additional money to unlock other features.
      • Example: buying additional filters and frames in photo editing apps.
  • Subscription
    • Usually has a free trial.
    • Will require you to pay a regular fee over a certain period (week, month, year, etc) to continue using main features of the app.
    • Example: Spotify, Netflix, etc.
  • Sell services & products
    • Selling physical goods and services is different from selling digital content. When working with physical goods and services you can avoid paying 30% commission to Apple by asking users to use their credit cards to pay for the goods and services.
    • Examples: Amazon, Uber.



This concludes our first ever episode of the 5 Minute Week. Since we’re an app company we practice what we preach and this entire show was made, recorded and edited with an iPhone app. Hope you guys enjoyed it.

And remember whatever you’re currently working on don’t just be good. Be the best.

See you next week.