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App developers face endless challenges, and one of the most delicate responsibilities is crafting the appropriate monetization approach. Of course, your services may rely on the income from subscriptions. Alternatively, they are monetized with various behind-the-scenes methods, such as ads, which enable the app to remain free for users.

However, sometimes choosing a paywall raises a question: which features should be readily available, and which should require payment to access? In this article, we discuss the differences between hard and soft paywalls, their comparative advantages, and the impact they have on revenue.

What are hard and soft paywalls?

A hard paywall is relatively simple: it’s any app that requires a subscription for payment to access its content. Most streaming services rely on this, only unlocking their video material after a user signs up for a membership. The marketing here focuses on the value that members receive.

On the other hand, we have soft paywalls that balance free and paid versions. For example, you may see a limited version of the app immediately after downloading it. However, if you want to access more, such as removing usage limits or unlocking additional features, payment is required.

Main advantages/disadvantages of hard and soft paywalls

Let’s delve deeper into the typical challenges and opportunities that hard and soft paywalls present to app developers. Both options are viable, but some apps might generate more revenue if adapted correctly early in the game.

Soft paywalls

Typically, soft paywalls are more user-focused and aim to persuade people to convert during their use of the free version. Thus, if people don’t like to buy subscriptions without seeing how the app works, it can convince them to make a purchase.

Of course, soft paywalls have a dilemma of not offering too much or too little to the user. The former removes their incentive to convert, as the free version provides enough for them. The latter means that users may not be impressed with the app due to its limited functionality.

If app developers wish to follow freemium monetization models, they can offer more. However, the requirements here are that the free version must also generate revenue.

A typical example is using ad networks via SDKs (Software Development Kits), such as AdMob or Unity Ads. Furthermore, developers can experiment with their app monetization, including less common yet up-and-coming methods. For example, Honeygain SDK enables app owners to generate recurring revenue by allowing users to share their unused internet bandwidth. Then, they can pay for premium access or other locked features using their internet connection, rather than actual money.

Hard paywalls

Hard paywalls offer a clear and effective way to market the product. App developers need to clearly showcase the value that does not require people to test the application. Of course, free trials are one way to soften hard paywalls, providing customers with the opportunity to experience the app before making a commitment.

Making the right choice

App developers must evaluate their apps and the industry in which they operate to justify their app monetization strategy. For example, users have certain expectations from video-streaming services (such as subscriptions and free trials). However, different techniques work for mobile games, exercise applications, or productivity apps. Before deciding on an app monetization approach, it’s essential to understand what your target clients would like to see.

Yet, don’t let user expectations thoroughly guide your app development. Experimenting with different approaches can yield positive results, showcasing new opportunities for many providers in the industry.

Conclusion

Currently, app developers have numerous opportunities to determine which app monetization strategies and paywalls work best for them. That might include market and competitor analysis, letting you see the current situation. However, additional research could also be insightful, such as hosting focus groups or paying attention to upcoming releases.