Monetization and the logic of the paywall

Monetization is a marketing topic, because price and the paywall are part of the funnel — often the part that loses the most people.

The main models:

• Free with ads — needs a lot of traffic; rarely works for a small app
• One-time purchase — simple, but the revenue does not repeat
• Subscription — the most common on mobile; recurring revenue, but it demands recurring value
• Freemium — a free tier plus a paid expansion. The most common practical choice

You choose with one question: does the user get value from this app once, or continuously? Once (converting a single document, say) — a one-time purchase makes sense. Continuously (recording lectures every week) — a subscription makes sense.

Both stores provide official subscription and in-app purchase mechanisms; their technical documentation is in the resources below.

Where you place the paywall — the most important decision. At which moment in the app does it appear? Three options and their consequences:

• On open (a hard paywall) — a large share of installs is lost immediately; only works with a strong brand or very obvious value
• After value is delivered — the user gets their first real outcome, then sees the paywall. The best choice for most apps
• Never shown explicitly — the user hits a limit and discovers it themselves; gentle, but revenue is lower

The logic of the second option: prove the value first, then ask for money. People cannot decide about a price before seeing what the app does — and when they cannot decide, they say no.

How much should the free tier be? A practical rule: enough for the user to see the "wow" moment, not enough for continuous use. For the notes app: the first three lectures free — people see the benefit but cannot get through a semester for free.

Price. Do not guess the price — test it. Both stores let you try different price points. But note: a price test must run at the same time (same period, comparable audience), or you will read a seasonal difference as a price difference.