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How Do Free Apps Make Money Different Monetization Strategy

If you’re wondering how to create an app for free and make money, you’ve come to the right place. And if you are in the top 20% with your perfectly coded high-quality app, there is no other chance but to get rich with a good monetization strategy afterwards. It goes without saying that if you wish to see your app in the first lines of the chart, you need to know how to make an app and how to monetize your app. Game developer Pink Pointer used native ads to monetize their free puzzle apps. CTA networks helped developers to achieve a 50% increase in Click-through rates (CTR- the number of ad clicks measurement), resulting in higher revenues.

  • Apple does also have their own ad tool for apps, which integrates the desired ads into your app and into one platform.
  • Although mobile apps have the potential to bring in billions of dollars in a year, very few reach that level.
  • Each of the aforementioned apps, all worth billions, provide something unique and create a new experience for the user.
  • Interestingly, many mobile app users would rather interact with an app and then use the in-app purchases feature later on.
  • Application content or functionality available for users may vary depending on their subscription plan.
  • The app is free to download but is currently only available on Android devices.
  • Before creating your app, form a list of companies that would benefit from partnering with you.

These ads are full-screen pop-ups shown at a specific moment within an app. The user has 2 taps to choose – either close the ad or check out the promoted content. With your free application, you can combine a few monetization strategies to make even more money. Regardless of the model you choose, make sure that your application provides value to users and helps solve their problems. You should be aware that there are thousands of other applications on such crowdfunding platforms, and it is no easy task to get attention to your application.

Step 1. Consider the apps’ business goal

For free apps with restricted content or features available for a limited time, the user can pay a subscription fee to get a full access and unlock it. This revenue type is often used for cloud services, video and audio streaming, online newspapers or magazines. The developer can provide users with free trial period and charge the subscription fee for an access without restrictions. The main challenge is to find a funder with similar or the same target audience and white label an app or adapt its design to match sponsor’s brand. Subscriptions can be counted as the most useful and finest app monetization strategy. In the freemium model, users get the basic features of the app for free but then have the option to access advanced premium features at an extra cost.

how do free apps make money

And although developers consider it the best option, it is one of the widely hated strategies from the user point of view. Since the ads provide an incentive to the user in the form of tangible tokens they can use in their game, users are likely to watch it till the end. As a user, you may constantly see them on the screen, but these ads do not interrupt your activity or screen view.


However, app monetization strategies are about as varying as the apps themselves. Free mobile applications make up a dominant share of the total apps in the app stores. As of November 2022, 97% of Android apps in the Google Play Store and 94% of iOS apps in the Apple App Store were free. This type of app monetization can help app providers earn additional revenue without resorting to traditional advertising platforms like banner ads. You must allow your target audience, particularly first-time users, enough access to experience your app and find compelling value. At the same time, you must put enough limitations so they’ll have reasons to make paid subscriptions.

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If you know how do free apps make money then you should also know which monetization model will be the best for your app. For example, if app owners are offering services for $5 to the app users. This amount seems reasonable for the US audience, but not for the users from other countries. In the beginning, you might get the app services for free but later users need to pay for premium services.

How to choose the right web development stacks

The best advice is – you need to displace the existing user behavior. If you already have a working digital business or a free app version, you are welcome to book an hour consultation with our Business Analyst for free. Receive advice on what monetization model to choose for your product and how do free apps make money how to increase your business revenue. Getting sponsorship is a profitable model to follow to make money from a free app. This model is usually available for developed free apps that already have regular users. The most benefits can be gained by applications with a specific market niche.

This way, you just need to focus on generating transaction volume on your app to earn more income. Adsterra makes it easy to create and deploy advertisements in apps with Direct Links. This is especially true with e-commerce businesses that have decided to make an app for their online users. Even better, the research has shown that converting non-paying users into paying ones has been successful in many cases with this strategy. There’s a difference between free apps and paid ones, namely how they make revenue. Those fees accumulate over time and can earn you a proper money amount monthly.

Hot to Choose the Best App Monetization Model? 8 Key Steps

However, it is no wonder that this has begun to annoy and irritate customers. This prolific use of ads has become ineffective, as less than 20% of users click on them. As well, this is among those app monetization strategies that can be effective only with apps that have a large pull of users, not for a startup project. ’ question, subscription, freemium, and advertising are the most popular monetization models among the developers of free apps. The in-app purchases model is an excellent way to monetize freemium apps without the ads. The freemium model allows you to sell new app content, premium features, physical, and digital products.

This type of app monetization is similar to ads, but the difference is deeper integration to the app. Apart from just running ads, you can place a sponsor’s logo or icon on the splash screen, footer, or integrate sponsored content with special offers right to your app. To make this type of monetization model more profitable, find sponsors with the same target audience. For instance, if you have a fitness app, you can find sponsors among fitness centers, personal trainers, or healthy diet websites.

Physical Purchases

The networks are generally based on cost-per-action (CPA model) or sharing revenue generated for advertisers. 84% of app users prefer rewards apps over applications containing ads. There is a number of tools that allow rewarding consumers on completion of a certain in-app action, ad interaction, through filling out a survey.

how do free apps make money

This is used to provide users with advanced and upgraded services of the app. The users can get access to special features and contents such as level up-gradation, power-ups, etc. Unlike paid apps, subscription apps are usually free to download.

What is the most popular app monetization strategy for free apps?

OfferUp mainly facilitates local transactions, but users can also ship products. Rather than monitor offers and messages, you can set an item to “buy now” with a set price for shipping. The cashback button automatically applies all applicable coupons, saving you the trouble of comparing coupons. It also displays cashback potential in Google search results and notifications about cheaper pricing available at other retailers. Although you have to spend money to make money, the app lets you get a little cash back for purchases you’d be making anyway.

how do free apps make money

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