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Six Best Monetization Models for Your App

Generating revenue is one of the essential steps you pass when working on a mobile application. Yet, some developers still believe that blindly stumbling forward and hoping the money would drop into their pockets is a proper monetizing strategy. In case you don’t feel like trying your good luck, be sure to use at least one – if not several – app monetization models for the app you are working on.

While the competition on the app market is high, it is the lack of proper understanding the concept of business model and monetization model that causes most troubles. Basically, monetization strategy is a part of your overall business strategy, and it focuses on designing a proper systematic method of earning from business operations planned in the business model. Once you get a general idea, you can move on to choosing one or several monetization models to imply.

Model 1: Subscription

In this type of model the user will be able to download the app and access a portion of content and features for free. However, to get full access to all features, he would need a paid subscription. This model is especially popular and effective for service-focused applications.

Model 2: Freemium Apps

This model is somehow similar to the Subscription one, but it works quite differently, though. Choosing the Freemium model, you would place your app somewhere between free and premium. The app will be available for the free download and use, but a good portion of options would only be unlocked through the purchase. This means users could either buy the premium version of the app at a flat price or choose and buy various features separately.

This particular model is efficient as it overcomes the initial download barrier. And in case your app is helpful and offers cool features, the model would lead to building a solid base of users ready to either buy the premium version or at least pay for some parts of it.

Model 3: In-App Ads

Most developers, both new and experienced, often start with In-App Ads model as long as it helps to eliminate any cost barriers on the way to downloading the app. Users often choose a free app over the paid one, so making it free increases its chances on the huge app market.

Once you gather a solid base of information about the app users, you can sell it to in-app advertising networks. This information would later be used to place advertisements in your application.

Model 4: Sponsorship

If you are a lucky developer with numerous successful and popular apps, this model might be available for you from the start. Otherwise, you would have to work out a solid client base first. In this model, app developers seek partnerships with specific brands, which provide rewards for the users when certain in-app tasks are completed.

Model 5: In-App Purchases

When choosing this model, make sure you have the actual things to monetize like goods or services you can sell either online or offline. There are plenty of stuff you can sell via the app, and modern users prefer in-app purchases over standard shops. So, while you did not design your app for selling, you could still get revenue from sales.

Model 6: Paid or Premium Apps

As obvious as it sounds, if you choose this monetization model, users will not be able to download the app for free. Before the download is available, the user will have to buy it from the store. This fact does place a huge barrier for a thoughtless installation of your app. Thus, it is your task to showcase and market your app in such a way that users would willingly buy it without trying.


Keep in mind – you can combine several models or mix and match them over time. Be flexible and adapt to the current situation – and you will get the most ROI from your app.


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