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Possible Avenues to Monetize Your App

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5513 Views | 5 min | Published On: January 25, 2017 Last Updated: April 17, 2020
app monetization techniques

It’s very fulfilling to create an app that attains immediate success. The same app could now open new avenues for growth of your business. However, the real potential of an app only becomes apparent when it starts pumping money into your business.That’s right, apps nowadays are increasingly being used for the purpose of monetizing. Read this guide to find out how it’s done and what’s the best way to go about it.

The monetization model you’ll adopt depends largely on the purpose of your app and its audience.It’s very true that a monetization model that works effectively for one mobile application development company may completely flop for another. So choose wisely based on the type of your app.

Premium or Paid Apps

To use paid apps, one has to buy them straight from the Play Store for a one time fee. Paid apps model is a bold way to monetize your app. When comparing how paid apps fare against free-apps in terms of usage, it becomes clear that the former tends to struggle.The reasons are more obvious than elusive. People are very reluctant to spend money on apps unless they know it’s really worth it. Paid apps are generally representing some top brands, so they have the name of the company to justify the cost of the app.

It goes without saying that such apps are feature-rich and offer very engaging user experience. It all comes down to what you’re promoting. If it’s a behemoth multinational offering its prime products and services then charging users for the same wouldn’t need any justification. An android application development company can definitely look to follow this model.



Under Freemium or Free to play model, the user is able to download the app for free. But generally has to upgrade to the paid version to unlock the full features. This model is best suited for gaming, music, magazines and other such similar apps.The idea is to offer limited features or content to the users that allow them to enjoy the app. Based on the user’s experience they have the liberty to either upgrade or stick with the free version.

This model has proved to have been more successful than premium or paid apps.The prospects to make revenue here are plentiful, but it tends to be slow-going. Even if the user stays with the free version, you could monetize through means of upgrades and premium content. Most budding mobile app developers looking to go with the Freemium model first up.

In-app purchases

The in-app purchase model usually works in collaboration with Free or Paid apps. It comes as no surprise, that free apps with in-app purchase remain the most successful monetization model. But it’s all to do with the implementation.

If you get it right, considerable revenue generation is guaranteed, but get it wrong, and you’d have to deal with negative criticism, poor ratings, and possible app failure. It’s a great model to have but needs great care to proceed with. An expert iPhone app development company knows all too well the value of getting in-app purchase model right.


A number of businesses simply opt for advertisements to generate revenue through their apps.This model is becoming more and more popular. The users themselves are willing to put up with a few ads in exchange for free access to app features.This is best combined with Freemium model for maximum output. The problem with this model is that you have to know how many ads are enough. Too many ads just spoil the fun and set your app for failure.Mobile application development companies are always cautious about advertising models.


Under this model, you apply for subscription to app services on a weekly, monthly or yearly basis. This is quite a familiar model but hasn’t gained as much popularity. It’s best suited for apps that consistently offer brand new content. A forward-looking Android application development company would know how to get the subscription model right.

How do you decide which is the best model for you?

Be it more or less, all the business models mentioned so far have the potential for revenue generation. But which is the best for your app is a tricky question for most mobile app developers!
Normally app monetization strategy should start beforehand, it’s not one to be left as an afterthought.

Having said that, the revenue generation correlates highly with what you’re offering. That is to say, ‘you get as good as you offer. So strive to provide best-in-class user experience and then focus on stages within the app where you could incorporate ads.

Something for everyone in Freemium with in-app purchase

Apps such as Subway Surfer and Spotify illustrate the best application of in-app purchase model. In Subway surfer, users have the option of purchasing keys that gives them another life and continue playing the game for a higher score. And in Spotify, people get to register as either free or premium user.

With a premium account, users get additional features such as saving music and streaming at the higher bit rate. This is whatFreemium with the in-app model is all about and there is no surprise it’s become so popular among the users. It has something to offer for everyone. Any android application development company can reap its benefits.

Premium must always justify the cost

While Free apps are abundant, there is no shortage of premium apps on play store either. Question is when is it right to opt for the premium model? Startups just testing the waters are better off going Freemium at first, evaluate the app success and then introduce premium features in a smart way.
However if the app represents an established brand, then it’s fair to go for Premium model right away.The app, however, should justify the cost.

If it doesn’t live up to the billing, there is a risk of inflicting damage on the brand itself. Premium apps can be found in all the major categories, be it Education, Lifestyle, Entertainment, Business, Personalization, Traveling etc.If you feel the features you’re offering are worth the users’ money, you’re well within your rights to make them a premium. An iPhone app development company just needs to get the balance between value and cost right.

Relevant ads to do away with annoyance

The advertisement model, which is nothing new to the users has always been around. But it has both its merits and demerits. Again, this model is best implemented with Freemium. The idea is that you won’t ask people for money for using the app, they’ll just have to put up with a few ads every now and then.

Careful understanding of your audience is necessary. If they value user-experience then having an ad-free interface at fitting cost would come in handy. The more embraced form of advertising that’s becoming more and more popular is native-advertising.In native-advertising, the developers look to promote relevant content or media within the app.It’s a smart way of advertising, ensuring that the user always feels at home! A mobile application development company should be right to advise the extent and use of ads in apps.

Subscription will always be part of the game

The subscription model hasn’t really had the greatest success, even though it’s one of the earliest forms of monetization. Though primarily associated with magazines and newspapers, it’s now starting to work in its way into music, movies and gaming apps as well.It’s always been thought that if you have new and fresh content to offer from time to time, a subscription model is your best bet. There’s definitely room for improvement in it and smart mobile app developers always find new ways to bring the best out of any model.

It’s all about understanding your audience in the end. The more you know them, the better your chances of earning rewards. Just think about your monetization strategy simultaneously while developing your app. If you’ve done your homework well, there’s no reason why your app monetization strategy would let you down.


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