App Monetization Guide: 7 Ways to Monetize Your Mobile App

Pramesh Jain
~ 6 min read
app monetization


It’s starting to feel like mobile phones have control over the world. In any place you look, individuals are gazing at their screens. People are stuck to their screens in every direction. Believe it or not, the average person spends 24 hours a week on the internet. Furthermore, the majority of them employ a variety of applications.

In today’s scenario, we can say there’s an application for absolutely everything. What, does it take to profit from all of these apps? App monetization is a challenging task. Yet you’d be surprised at how many clever ways developers have found for turning their creations into money-making ventures. People are making a mobile app but could not understand how to monetize the app properly.

What is App Monetization?

App monetization is the most common way of producing income from your application. Whenever distributors offer free applications, they produce income in alternate ways.

Designers need to produce income from their applications, yet they very well may be trying to remain above water without a strong measure of subsidizing. With most applications allowed to introduce, engineers need to change their income model to create cash after the client downloads the application. While thinking of your plan of action, you want to guarantee that your application creates income and gives an extraordinary client experience.

Types of App Monetization

1. Freemium- in-app purchase

This methodology permits the users to download the application free of charge, yet a few premium elements are behind a paywall. The clients can attempt the application in the fundamental arrangement. However assuming they need multiplayer, for instance, they need to buy the top-notch variant. This approach can expand the crowd reach and the number of downloads. Gamers can purchase adornments for their characters, assets, or premium bundles.

Eg: Some apps, especially games—think Candy Crush Saga and Pokémon GO, and VSCO, are the most famous ones.

freemium- in app purchase

Other apps, including meditation and recipe apps, are free to download, and they allow users to access basic features for free (or if they are willing to put up with ads). To Access premium features one needs to pay and after that one can continue to use the prime attributes of the app. 

2. In-App Advertising

Promotions that appear as a user uses an application are known as in-app advertisements. Although it looks to be simple, every application implements in-app advertising in a different method.

Apps that employ in-app advertising want to gain a big enough user base and gather enough information about them to put highly targeted adverts for advertisers by removing the barrier to paying upfront.

in app advertising

When it comes to in-app adverts, the user experience is crucial, too many ads can irritate customers In-app advertisements do not have to be obtrusive or aggressive; when they are highly targeted and provide the correct offers to the right consumers, they may create value for both the advertiser and the user.

There are many ways to integrate with mobile. Ads can be shown in video ads units, mobile display ads,s, and native mobile app ads.

3. Upgrade to remove ads

In this model, ads are served unless the user pays the subscription to remove them. Spotify and YouTube Music, Inshot use this model. 

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4. Pay per download app

The compensation per-download model is one of the most simple approaches to monetizing the application. To put it another way, this is when a developer registration their application on the app store for a certain amount of money. Clients make this one-time purchase upon installing the app, after which they may use the entire content indefinitely.

The main advantage of this approach is that app owners have complete control over the pricing of their applications and never have to worry about user canceling their subscriptions.

Nonetheless, until fresh consumers are installing the program, pay-per-download models will not provide a consistent flow of revenue.

5. White labeling app monetization

If your app makes a great success that has been created from scratch by yourself or by your team member. You will be approached by the brand to use your coding techniques for their application.  It will give money without giving too much time to your existing mobile app development. You can give the authorization to use your code in exchange for some revenue. 

You’ll draw the attention of other app developers if you create something powerful and helpful that generates enough traction. You may add value to their lives by assisting them in avoiding the time and effort of creating code for the functions that your software already does.

6. Subscription-based model

In this case, your customers do not need to pay a one-time fee to use your application, but rather a monthly (or yearly) membership fee. With the program available for download, developers will make a portion of their application available for free. Allowing users to experiment with the application before paying any subscription amount.

subscription based model

Two of the primary advantages of the membership-based model are a consistent flow of revenue from dynamic clients regardless of whether development is slow, and there are fewer barriers for clients to first download your program. Consider Spotify as an example of one of the greatest membership-based services in use.

7. Sponsor post

Sponsors and collaborations, often known as influencer marketing, may be an efficient approach to monetizing your mobile app. Brands may be interested in utilizing your mobile app to interact with their target consumers. If you have a significant user base or have created a following in a certain niche.

For instance, If you have a health & fitness app that target youngster. You may collaborate with partners that share similar beliefs, providing consumers with a beneficial tip while increasing brand recognition. It is a win-win situation for both parties. 


Some apps aim to make money right away rather than gradually gain users. Others concentrate on rapidly expanding their user base and then profiting. Your business objectives will assist in establishing (or ruling out) suitable monetization options.

Another thing to bear in mind is that many revenue strategies aren’t exclusive. You may mix and match. For example, providing a free app with targeted adverts and an ad-free Premium edition of your app for customers who desire to pay.

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