rshankras/monetization

Monetization Strategy

End-to-end monetization guidance for Apple platform apps — from "should I charge?" to "here's your pricing page structure."

Sub-skills in this category: external-purchases/ (US web checkout via the External Purchase Link entitlement, commission-flip architecture) and bundles-and-licensing/ (own-app bundles, Family Sharing, cross-developer suites, institutional volume licensing). Route there when the question is beyond the single-app price tag.

When This Skill Activates

Use this skill when the user:

• Asks "should I monetize my app?" or "is my app ready to charge?"
• Wants help choosing between freemium, subscription, or one-time purchase
• Needs pricing tier recommendations
• Asks about free trial strategy
• Wants to plan monetization for a specific app type (kids, therapy, productivity, etc.)
• Mentions "pricing", "revenue model", or "how to make money from my app"
• Wants to understand Apple's commission structure

Process

Phase 1: Readiness Assessment

Before recommending a pricing model, evaluate whether the app is ready to monetize. Ask these questions via AskUserQuestion:

1. App Stage

• Pre-launch (idea/prototype)
• Beta / TestFlight
• Live with users (< 1K)
• Live with traction (1K+ users)

2. Value Proposition

• What problem does your app solve?
• Who is the target user?
• What alternatives exist (including doing nothing)?

3. Current State

• Do you have active users?
• What's your retention like? (Day 1, Day 7, Day 30)
• Are users asking for features / willing to pay?

Readiness Scorecard

Evaluate against these criteria:

| Signal | Ready | Not Ready | |--------|-------|-----------| | Core value | Clear, differentiated | Still finding product-market fit | | User retention | D7 > 20% | D7 < 10% | | User feedback | "I'd pay for this" | Silence or complaints | | Feature depth | Enough for free + paid split | Everything feels essential | | Competition | You offer something unique | Commodity feature set | | Polish | Professional quality | Rough edges everywhere |

Recommendation thresholds:

• 5-6 Ready signals → Monetize now
• 3-4 Ready signals → Soft-launch pricing (low price, gather data)
• 0-2 Ready signals → Focus on product first, monetize later

Phase 2: Pricing Model Selection

Based on app type and user behavior, recommend the right model.

Decision Framework

Is the app used daily/weekly?
├── YES → Does it provide ongoing value?
│   ├── YES → SUBSCRIPTION
│   └── NO → ONE-TIME PURCHASE (with optional tip jar)
└── NO → Is it a utility/tool?
    ├── YES → ONE-TIME PURCHASE or FREEMIUM
    └── NO → Is it content-based?
        ├── YES → SUBSCRIPTION or CONSUMABLE IAP
        └── NO → FREEMIUM with premium unlock

Model Comparison

Read pricing-models.md for detailed comparison of each model:

• Subscriptions (auto-renewable)
• One-time purchase (paid upfront or freemium unlock)
• Consumable IAP (credits, tokens)
• Non-consumable IAP (feature unlock)
• Tip jar / patronage
• Ad-supported with premium upgrade

App-Type Recommendations

Read app-type-guides.md for specific guidance by app category:

• Productivity / task management
• Health / therapy / wellness
• Kids / education
• Creative tools
• Social / community
• Developer tools
• Finance / budgeting

Phase 3: Tier Structure

Once a model is selected, design the tier structure.

Subscription Tiers (if applicable)

Two-tier structure (recommended for most indie apps):

FREE                    PRO ($X.99/mo or $XX.99/yr)
─────────────────────   ─────────────────────────────
Core functionality      Everything in Free
Limited usage/storage   Unlimited usage
Basic features          Advanced features
                        Priority support (optional)
                        Early access to new features

Three-tier structure (for apps with clear user segments):

FREE          PLUS ($X.99/mo)     PRO ($XX.99/mo)
────────────  ──────────────────  ──────────────────
Basic use     Power user          Professional/team
Ads/limits    No ads, more quota  Unlimited + extras

Pricing Psychology

• Anchor pricing: Show yearly first to make monthly look expensive
• Price ending: Use .99 for < $10, round numbers for premium ($19, $29)
• Yearly discount: 15-40% off monthly equivalent (sweet spot: ~30%)
• Decoy effect: Three tiers where middle looks like best value
• Regional pricing: Use App Store price tiers for automatic localization

Free vs. Paid Feature Split

The hardest decision. Follow these principles:

Free tier should:

• Demonstrate the core value proposition
• Be genuinely useful (not a crippled demo)
• Create natural upgrade moments ("you've hit the limit")
• Let users invest time/data before hitting the paywall

Paid tier should:

• Unlock power/convenience, not basic functionality
• Feel like "more of what you love" not "removing annoyances"
• Include at least one "hero feature" worth paying for alone

❌ Bad splits:

• Free: Can view data → Paid: Can edit data (feels hostile)
• Free: 3-day trial → Paid: Everything (no ongoing free value)
• Free: Everything → Paid: Remove ads (weak value prop)

✅ Good splits:

• Free: 5 projects → Paid: Unlimited projects + templates
• Free: Basic tracking → Paid: Insights, trends, export
• Free: Single device → Paid: Sync across devices + widgets

Phase 4: Free Trial Strategy

Trial Types

| Type | Best For | Apple Support | |------|----------|---------------| | Introductory offer (free) | Subscriptions | Built-in via App Store | | Introductory offer (discounted) | High-value subscriptions | Built-in via App Store | | Feature-limited free tier | Freemium apps | N/A (your logic) | | Time-limited full access | Productivity apps | Built-in via App Store |

Trial Duration Recommendations

| App Type | Trial Length | Reason | |----------|-------------|--------| | Daily-use productivity | 7 days | Quick to see value | | Health/fitness tracking | 14 days | Need time to build habit | | Creative tools | 7 days | One project cycle | | Business/professional | 14-30 days | Need to integrate into workflow | | Education/learning | 7 days | One learning cycle |

Trial Conversion Tactics

1. Onboard to premium features during trial (not free features)
2. Show "trial ending" reminder 2-3 days before expiration
3. Highlight value received ("You tracked 47 workouts this month")
4. Offer annual option at trial end (bigger commitment but better price)
5. Win-back offer if they don't convert (promotional offer after 30 days)

Phase 5: Implementation Guidance

After strategy is set, guide implementation.

Apple Commission Structure

| Scenario | Apple's Cut | You Keep | |----------|-------------|----------| | Standard (Year 1) | 30% | 70% | | After Year 1 of subscription | 15% | 85% | | Small Business Program (< $1M/yr) | 15% | 85% | | Small Business + Year 2 subscription | 15% | 85% |

Important: Revenue calculations should always account for Apple's cut. A $9.99/mo subscription with Small Business Program = ~$8.49/mo to you.

StoreKit 2 Implementation

For code generation, refer users to the paywall-generator skill:

Use the paywall-generator skill to create:
- StoreKit 2 subscription management
- Paywall UI (SwiftUI)
- Receipt validation
- Subscription status tracking

Paywall UI Patterns (HIG-Compliant)

Do:

• Show feature comparison (free vs. paid)
• Display price per period clearly
• Highlight savings on annual plan
• Include "Restore Purchases" button
• Show terms of service and privacy policy links
• Use system subscription views where available (iOS 18.4+)

Don't:

• Block the app immediately on launch
• Use dark patterns (hidden close button, confusing language)
• Make it hard to dismiss the paywall
• Misrepresent subscription terms
• Auto-select the most expensive option

App Store Review Guidelines (Monetization)

Key rules to follow:

• 3.1.1: In-app purchase required for digital content/features
• 3.1.2: Subscriptions must provide ongoing value
• 3.1.3: "Reader" apps can link to web for account management
• 3.2.2: Unacceptable business models (bait-and-switch, etc.)
• 5.6: Developer Code of Conduct (no manipulative tactics)

Output Format

Present monetization strategy as:

# Monetization Strategy: [App Name]

## Readiness Assessment
**Score**: X/6 — [Ready to monetize / Soft-launch / Focus on product]

| Signal | Status | Notes |
|--------|--------|-------|
| Core value | ✅/❌ | ... |
| Retention | ✅/❌ | ... |
| User demand | ✅/❌ | ... |
| Feature depth | ✅/❌ | ... |
| Differentiation | ✅/❌ | ... |
| Polish | ✅/❌ | ... |

## Recommended Model
**[Model Name]** — [One-line rationale]

## Tier Structure

| Feature | Free | Pro ($X.99/mo) |
|---------|------|-----------------|
| ... | ✅ | ✅ |
| ... | Limited | Unlimited |
| ... | ❌ | ✅ |

**Annual pricing**: $XX.99/yr (XX% savings)

## Free Trial
**Type**: [Introductory offer / Feature-limited / etc.]
**Duration**: [X days]
**Conversion tactics**: [Bullet list]

## Revenue Projections (Conservative)

| Metric | Estimate |
|--------|----------|
| Monthly price | $X.99 |
| Annual price | $XX.99 |
| Conversion rate (free→paid) | X-X% |
| Revenue per 1K MAU | $XXX-$XXX/mo |

## Implementation Checklist
- [ ] Configure products in App Store Connect
- [ ] Implement StoreKit 2 (use paywall-generator skill)
- [ ] Design paywall UI
- [ ] Set up introductory offers
- [ ] Add analytics for conversion tracking
- [ ] Test with StoreKit Configuration file
- [ ] Submit for review

## Next Steps
1. [First action item]
2. [Second action item]
3. [Third action item]

References

• pricing-models.md — Detailed comparison of all pricing models
• app-type-guides.md — Category-specific monetization recommendations
• paywall-generator skill — For StoreKit 2 code generation
• app-store skill — For App Store description optimization
• Apple App Store Review Guidelines §3 (Business)
• Apple StoreKit 2 documentation