May 22, 2023 - 12 minute read

4 Monetization Mistakes you’re Making for your App (and How to Fix Them!)

4 Monetization Mistakes you’re Making for your App (and How to Fix Them!)

As a developer, it can be challenging to build an app and make money from it. Monetizing an app can be tricky, especially when you're just starting. In this article, we'll discuss four common monetization mistakes that developers make with their apps and how to fix them. 

Mistake 1: Too many ads 

Excessive ads in your app can lead to a negative user experience and drive users away. They disrupt the app's usability and can be perceived as intrusive and frustrating. Users value a smooth and enjoyable experience, and when ads appear frequently or interrupt their interaction, it can result in dissatisfaction and reduced engagement. According to a survey, 90% of users find targeted ads annoying. 

Furthermore, excessive ads can slow down the app's performance, causing longer load times and laggy navigation. Users expect apps to be fast and responsive, and when ads consume device resources, it hinders the overall performance. This can frustrate users and diminish their satisfaction with the app. 


  • Implement Ad Frequency Controls: Set limits on the number of ads shown within a certain timeframe to avoid overwhelming users with an excessive ad load. 
  • Optimize Ad Placement: Carefully consider ad placement to minimize disruption to the user experience. Avoid intrusive ad formats that obstruct content or interrupt the user's interaction with the app. 
  • Offer Ad-Free Options: Provide users with the option to upgrade to an ad-free version of the app through a subscription or one-time purchase  

By striking the right balance between ad frequency and user experience, app developers can maintain user engagement, satisfaction, and ultimately, improve their app's monetization success. 

Mistake 2: Not having an incremental revenue stream  

The biggest mistake that developers make when monetizing their app is not having an incremental revenue stream. This means that they rely solely on their app's initial sales, ad revenue or in-app purchases, which can be unstable and inconsistent. Especially in today’s economic climate. In 2022, mobile app and game revenue declined by 3% and is predicted to continue declining in 2023.  

Solution: Adopt incremental revenue streams, such as Kindred, which are zero-cost and hassle-free to implement into your app. 

Kindred offers an incremental revenue stream to developers, which can help them monetize their app and generate additional revenue externally to their app. With Kindred, developers earn commission every single time their users shop online from thousands of their favourite brands. Developers can still generate revenue from ads or IAPs, whilst Kindred acts as a complementary stream providing long-term passive revenue, tapping into the $5 trillion e-commerce industry.  This can help boost user loyalty and increase engagement with your app. 

Mistake 3: You don't have an onboarding process 

What happens after your users download the app and create an account? 

If your answer is nothing, you may be finding it challenging to retain users which ultimately affects your revenue.  

Did you know that less than 25% of app users return to the app the next day after installation? Yet simply sending out one onboarding push notification to new users during week one can significantly increase retention by 71% over two months. 

Solution: By providing a seamless and engaging onboarding experience, you can significantly improve user retention rates. Here's how to do it: 

  • Create a personalized onboarding experience: Tailor the onboarding process to each user's preferences and needs.  
  • Interactive tutorials: Incorporate interactive tutorials within the app to guide users through its key features and functionalities. These tutorials should be concise, visually appealing, and interactive to keep users engaged and excited about using the app. 
  • Progressive onboarding: Instead of overwhelming users with all the app's features at once, adopt a progressive onboarding approach. Introduce new features gradually, allowing users to learn and explore the app's capabilities over time. This prevents information overload and promotes long-term engagement. 
  • Push notifications and reminders: Utilize push notifications strategically to re-engage users and remind them of the value your app provides. Send personalized notifications to encourage users to return to the app, complete certain actions, or explore new features.
  • Feedback and surveys: Actively seek user feedback to understand their pain points, suggestions, and preferences. Incorporate feedback mechanisms such as surveys, ratings, and reviews within the app to gather insights that can help improve user experience and address any issues.

Once you conquer low retention by creating a seamless onboarding experience, you’ll be on the way to generating more revenue with more active users.


Mistake 4: Not tracking user behaviour  

Finally, a common mistake that developers make is not tracking user behaviour. Understanding how users interact with your app can help you optimize your monetization strategy. 

Solution: Track user behaviour. 

Developers can track user behaviour using analytics tools, such as Google Analytics or Firebase. This can help you understand which features or content are popular among your users and optimize your monetization strategy accordingly. 

Here are some specific user behaviour metrics that app developers should track: 

  • User engagement: Measure the time spent on the app, the number of sessions per user, and the frequency of app usage. This helps identify the level of user engagement and the app's stickiness. 
  • App navigation: Analyse the paths users take within the app, including screen flow, taps, swipes, and interactions. This reveals the user journey and highlights any bottlenecks or areas for improvement in the app's usability.
  • Conversion funnel: Track user actions leading to conversions, such as signing up, making purchases, or subscribing to premium features. This provides insights into the effectiveness of the app's conversion process and helps optimize it for better results. 
  • In-app behaviour: Monitor specific actions performed by users within the app, such as content consumption, searches, shares, likes, and comments. This helps identify user preferences, popular features, and areas of interest that can be leveraged for monetization opportunities. 
  • Churn rate: Keep an eye on user churn, which refers to the rate at which users stop using the app. Understanding the reasons behind user churn can help developers identify pain points and implement strategies to improve user retention. 
  • Ad performance: If the app includes advertising, track metrics related to ad impressions, click-through rates (CTRs), and revenue generated. This data helps evaluate the effectiveness of ad placements and optimize monetization strategies. 
  • User feedback: Actively collect and analyse user feedback, such as ratings, reviews, and support tickets. This provides valuable insights into user satisfaction, pain points, and feature requests, which can guide future app improvements and enhance monetization efforts. 

By tracking these user behaviour metrics and analysing the data collected, app developers and publishers can make data-driven decisions to optimize their monetization strategy, improve user engagement, and create a more tailored and successful app experience. 


Monetizing an app can be challenging, but it's essential to have a solid strategy in place. By avoiding these common mistakes, countering them with the solutions we’ve provided, and using Kindred's incremental revenue stream, developers can generate additional revenue, boost user loyalty, and implement ESG strategies into their businesses.

Book a call with the team to see how we can help you today!