Striking a balance between acquisition and monetization - here is how it is done

Acquisition and monetization are two different things. Each firm has to make a key decision in deciding how to balance the importance of monetization in comparison to acquisition. A general rule states that the earlier and aggressively a firm monetizes its business, the fewer users it will acquire, and that is true in short.

Hence, firms have to find a way to balance all this or ultimately they will be cash strapped, as determined by team leads of finance, development, quality assurance, software development, business development and marketing from a firm of mobile app development Toronto

They also stated that if a firm cannot acquire enough customers then their growth faces challenges which cannot be easily solved and might even lead to the brink of bankruptcy.

So how do organizations solve these problems? Let us have a look at the case of two well known digital brands.

Earnin – a free app which is still monetized

Essentially what Earnin does is that it gives employees cash advances against their earnings. However, they do not charge for the service as other payday loan providers do. What happens is that users pay Earnin for its service by giving it a tip, ranging anywhere from C$0 to C$ 17.

The company hence decided to use their unique approach and it was perceived as too good to true at the time of its inception. There were three elements going for it:

  • Acquisition cost is low: The cost of acquisition for a service that is either free or is low is hence quite low, as experts determined. By offering only a tip, it made a free service which reduced the cost of acquiring customers.
  • The APR is high: The average advance was around only C$ 110 and for just seven days on average. Hence, even a C$ 3 tip is effectively a pretty high APR. 3% per week leads to quite a high APR of around 156%. No firm can’t charge much more than what could be made in a tip.
  • Free services are often more viral: Free services are more viral as experts have observed. People are more than likely to recommend to their friends a free service.


Figuring out a way to make things free and monetizable at the same time is a strategy that is uniquely valuable. If any firm can make it happen for their own mobile app, they can do so without any hesitation.

Experienced marketers and developers believe that this combination of having a free app and having the ability to carry out marvellous monetization activities to what anyone can get by charging people is able to improve both acquisition and virality.

This helped Earnin grow quite fast compared to the competition. Ultimately the firm raised more than C$ 210 million helping it become the leader in the cash advance business and industry. making the most with streamlined signups and monumental savings is an online insurance provider. However, in what ways did it differentiate itself from the competition that exists? Experts do find out people like buying insurance from a trusted online provider. 

However the catch is that the focus of that provider should be on how it helps people save their previous money, instead of what they’re spending on.’s success involves the following steps

  • Making signups simple: Through making signups easy and simple, makes it convenient for customers to get what they need immediately and that is instant gratification. The company leverages over 60 data providers hence customers only need to provide a name and a number. From this point, the company is able to pull things like customer identity, automobiles they drive, driver’s license, home address, current coverage details for their existing insurance plan and the like. This process saves the customer from having to fill out a lot of data as required by competitors.
  • The company talks about savings: When the signup complete, customers are asked how much they paying for their existing insurance package. This detail cannot be provided from data providers. It is from this point that the company is able to quantify the monthly savings customers can obtain by switching to This turns the topic from purchase to saving. Since not everyone is in the mood of buying, they all are in the mood of saving, whether it is for a rainy day or for the long term.  This combination of simple signups and driving conversation towards savings helped the company raise its conversion. More than 27% of users who clicked on a ad ended up in signing up. More than 10% switched towards the firm because of the savings factor.


Acquisition and monetization can take place simultaneously but if the focus benefits the customer in clear terms. The firm made signup easy which helped them streamline their acquisition process removing any barriers and hesitation factors (hire app developer).

Secondly, they moved conversations towards money being saved instead of how much customers needed to pay. This removed potential roadblocks which would otherwise become a part of online insurance sales.



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