How to Build Features That Make Money
Building features that make money doesn’t happen by accident. It takes planning, research, and a user-centric approach. But the payoff is worth it. Start with market research, understand what your users value, and design features that are easy to pay for. The right monetization strategy will not only boost your revenue but also help you build a more engaged, loyal user base.
Summary
Building features that make money doesn’t happen by accident. It takes planning, research, and a user-centric approach. But the payoff is worth it. Start with market research, understand what your users value, and design features that are easy to pay for. The right monetization strategy will not only boost your revenue but also help you build a more engaged, loyal user base.A good example of this is when an app has a large user base but struggles to make money. You might see downloads in the hundreds of thousands, but revenue remains flat. If this sounds familiar, it’s time to re-evaluate your approach to building features.
Table of Contents
- The Gap Between Engagement and Revenue
- Build with Revenue in Mind
- What’s in it for You?
- A Practical Approach
- Learn from Success Stories
- Time to Take Action: Turn Ideas into Revenue
The Gap Between Engagement and Revenue
A common pitfall for developers and product teams is focusing too much on creating features they think users want, rather than what users are actually willing to pay for. It’s easy to get caught up in developing flashy features or following trends, but those won’t necessarily drive revenue. And here’s the harsh truth: no matter how much engagement your app gets, if people aren’t paying, you’ve got a problem.Take a popular app that offers free services, but constantly faces challenges when it comes to keeping the lights on. Why? Because while users may love the free offering, they’re not given enough incentive to pay for additional services or features. The gap between engagement and revenue is where many apps fail.
To fix this, you need to shift your focus. Instead of thinking about what features will make your app cool, think about what will make users willing to pay. That’s where the money is.
Do:
- Focus on identifying features users are willing to pay for.
- Example: “We saw a spike in revenue after offering premium features that made life easier for our users, such as advanced filters and ad-free experiences.”
- Build features based on assumptions without market validation.
- Example: “We spent months developing a feature that no one ended up using, simply because we didn’t ask users if they’d be interested.”
Build with Revenue in Mind
If you want to make money, you need to build features that people find valuable enough to pay for. This requires a strategic approach: market research, user feedback, and smart design. It’s about understanding the pain points of your audience and figuring out what features will help solve those problems — so much so that they’re willing to open their wallets.Let’s take a look at Spotify. They started out as a free service, and they gained a large user base. But when they introduced premium features — such as ad-free listening, offline downloads, and better sound quality — they tapped into the needs of their most engaged users. This move transformed their business model, turning Spotify into a highly profitable company.
Do:
- Use user feedback and market research to guide feature development.
- Example: “After conducting user surveys, we found that people were willing to pay for offline access and ad-free browsing, so we prioritized those features in our next release.”
- Build without validating whether users would pay for the feature.
- Example: “We assumed our users would love the gamification feature, but it didn’t lead to any uptick in revenue.”
What’s in it for You?
By building features that drive revenue, you’re not just ensuring the financial success of your app — you’re creating a product that is more engaging and sustainable. When users see value in the features you offer, they’re more likely to stick around. This doesn’t just increase your revenue in the short term, but it also boosts user retention and overall loyalty. It’s a win-win.For instance, think about apps that offer a free tier but also include a paid option. The free tier hooks users in, but as they become more invested in the app, they start to see the benefits of paying for premium features. This model doesn’t just add to the bottom line — it also keeps users coming back for more. Retention increases, churn decreases, and the app’s financial health improves.
Do:
- Focus on features that add value for both the user and your business.
- Example: “By adding a subscription model for premium features, we were able to boost both revenue and user engagement.”
- Prioritize features that don’t have a clear path to revenue.
- Example: “We built a fancy analytics dashboard, but our users weren’t willing to pay extra for it.”
A Practical Approach
So, how do you actually build features that make money? Here’s a step-by-step approach:- Conduct Market Research:
Start by understanding what your target users value most. What problems do they have that you can solve? What features do they want, and more importantly, what would they be willing to pay for? - Prioritize User Needs:
Once you have this information, prioritize the features that will have the biggest impact on both user satisfaction and your bottom line. Focus on features that solve problems or offer additional value that free users don’t get. - Integrate Payment Solutions:
Make it easy for users to pay. Whether it’s a subscription model, in-app purchases, or a one-time fee, the payment process should be seamless and hassle-free. - Test and Iterate:
Build your features incrementally. Test them with a small group of users, gather feedback, and refine as needed. This ensures that you’re building something users actually want and are willing to pay for.
- Break the process into manageable steps, and iterate based on user feedback.
- Example: “We started with a basic subscription model, but after user feedback, we added additional pricing tiers to meet the varying needs of our audience.”
- Rush into building complex monetization features without testing them first.
- Example: “We launched a paywall too early, which frustrated users and led to a drop in engagement.”
Learn from Success Stories
Success leaves clues. Let’s take a look at Duolingo, the language-learning app. Initially, Duolingo offered a free service. But over time, they introduced a subscription option that removes ads and offers offline access. This shift allowed them to significantly increase their revenue, while still providing a valuable free product for casual users.Do:
- Look at what’s worked for other successful companies.
- Example: “Duolingo’s freemium model allowed them to maintain a large user base while also increasing revenue with premium features.”
- Assume that what works for one company will automatically work for you.
- Example: “We copied another app’s feature set, but it didn’t fit our audience, and it didn’t lead to any increase in revenue.”
Time to Take Action: Turn Ideas into Revenue
Now that you know the importance of building money-making features, it’s time to take action. Start by reviewing your current app. What features are users engaging with? Which ones are bringing in revenue? Conduct some quick market research, ask your users what they want, and begin prioritizing features based on their feedback.Make sure to implement features that offer real value — don’t just build for the sake of it. The end goal should be to create features that people are willing to pay for, and that keep them coming back. If you do this right, you’ll not only see your revenue increase, but you’ll also build a stronger, more sustainable business.
Do:
- Take small, manageable steps towards implementing monetization features.
- Example: “Start by identifying one or two premium features that solve real user problems, and work from there.”
- Wait too long to start implementing revenue-generating features.
- Example: “We waited too long to introduce premium features, and by then, our user base had lost interest.”