The struggle to find a way to monetize your service is one that many startups are painful familiar with, and Snapchat is definitely one of them. Advertisements have been the company’s sole source of revenue for a while now, but that’s not nearly enough, especially when you’re dealing with a userbase as large as Snapchat’s. That’s why the company recently introduced a new feature that allows users to pay a small fee to replay any of the ephemeral messages that they receive. In-app purchases may be an unimaginative way to monetize, but money is still money.
Snapchat is debuting its first in-app purchase. It’s a new way for it to make money by letting users purchase three extra Replays of Snaps they just watched for $0.99. The company is also adding a new feature called lenses that lets users add animated effects to their face. When in Selfie mode, Snapchat will detect their faces, and users can then tap and swipe to add little overlaid graphics that let them puke rainbows, turn into monsters, and more. Until now, Snapchat had only monetized through advertisements. By offering in-app purchases it could better squeeze cash out of its die-hard fans who might not want to sit through commercials, but would love to see that last ephemeral message again, or jazz up their Snaps. Back in 2013, Snapchat CEO Evan Spiegel told TechCrunch that “We think we can build really cool stuff people want to pay for. The app is now a part of everyone’s day-to-day lives. That means that they will — I at least would — pay for a more unique experience.” Snapchat acknowledges the replays are a bit expensive in their blog post: “Today, U.S. Snapchatters can purchase extra Replays, starting at 3 for $0.99. You can use a Replay on any Snap you receive, but you can only Replay any Snap once. They’re a little pricey — but time is money! ;)”
