• 5 Mobile App Monetization Models To Earn a Great Deal Of Revenue

    5 Mobile App Monetization Models To Earn a Great Deal Of Revenue 

    Why do you want to develop a mobile app? Obviously for extending your brand’s presence, increasing customer base, and providing value to customers. Not just your company several other brands rely on mobile app development services to extend their reach, profitability, and value.

    But most importantly, everyone is approaching developing an app to make money. And without adding a proper revenue model to the application, it is cumbersome to meet the purpose.

    Therefore, we are here to showcase to you five different app monetization models that you can use accordingly. It’s more like a valuable piece of information for you after understanding everything about mobile app development in 2022.

    Five Different App Monetization Models

    Five Different App Monetization Models 

    1. In-App Advertising

    You might have come across this model of application somewhere or the other. The in-app advertising model features publishers placing some ads on your application and allowing users to click. The ultimate goal is to accumulate as much users’ data after clicking on the app and then reaching them for product/service offerings.

    As an enterprise, you can develop a mobile app and allow respective app publishers to place ads on your platform and earn significantly. It’s more like Facebook ads that you see on the social media platform and sometimes clicks on the same.

    Key advantages of in-app advertising 

    • Collect a vast multitude of customer data and reach them later accordingly.
    • Gain more users and allow them to click on ads.
    • Target-based advertising captures the attention of a particular audience.

    Disadvantages of in-app advertising

    • A slow process of generating revenue from the app.
    • Mobile ads sometimes cover the relevant space of your application.

    2. Paid Apps

    As the name implies, these are paid apps for which users have to pay to download the same and access features. Paid apps can cost according to the market standards and your requirement. By getting in collaboration with a leading mobile app development company, build paid apps with specific features. The upfront cost application has several examples available in the marketplace.

    Several musics, productivity-related, and service-based apps are paid ones that allow the users to first pay and then access the services. Moreover, such apps are high-end in terms of specific screenshots, well-written app descriptions, and positive reviews posted on the respective app platform.

    Key advantages of the paid apps 

    • Easy to make upfront revenue.
    • Users who pay for paid apps are more engaged than free apps.
    • The app does not feature in-app advertising.
    • The model motivates app developers to innovate more features.

    Disadvantages of the paid apps 

    • Selling the paid app is complicated compared to other apps.
    • App Store takes a particular cut from the revenue earned.

    3. Freemium Model

    The Freemium model of mobile apps is somewhat similar to in-app advertising and yet different to some extent. Such apps are divided into two sections, first is the basic features that users can access free of cost. The other section is the list of premium features, sections, and content that can only be accessed after paying a certain fee. So, the freemium model covers both free and paid apps.

    One of the best examples of freemium apps is gaming mobile applications. Such apps allow users to access basic levels of the game and play. To unlock the advanced levels, users have to pay a particular sum of a fee to the application itself. This is how the gaming app company makes money and engages more users extensively.

    Key advantages of the freemium apps

    • Easy to build a large user base & increased set of revenue.
    • More engaged users with a high retention rate.
    • A flexible model of the mobile app.

    Disadvantages of the freemium apps 

    • Not good for offering more than two offers.
    • Offering too many features will be difficult for an app to earn.

    4. In-App Purchases

    One of the extensively created, used, and popular app monetization models are in-app purchases. It involves selling products and services digitally to the target customers and reaching a wide spectrum of audiences. In-app purchases could be in the form of physical products, in-game currency, or anything that is of customer use.

    The eCommerce platform is the best example of an in-app purchases model that allows the customers to seamlessly buy products. On the other side, the online dating app is another best example that provides the service of letting strangers people connect, communicate, and later meet.

    Key benefits of in-app purchases

    • The in-app purchases model works pretty well for eCommerce businesses.
    • This model helps marketers to earn more profit at the lowest possible investment.
    • High engagement and customer retention level.
    • The profit margin is high compared to other available monetization models.

    Disadvantages of in-app purchases 

    • App stores take the revenue from the sales.
    • The app requires more features and strategic planning.

    5. Subscription Based

    Similar to the freemium model, subscription-based mobile apps have basic and specialized service offerings for users. This model allows the users to access the basic functionalities of an application and pay for specific services and that too for a brief period of time. The fitness app is the best example of this model in which users have to pay for a particular health, workout, or meal plan subscription, and the rest information is free. Another ideal example is music streaming apps in which you can go for a subscription to listen to exclusive songs ad-free.

    Key advantages of the subscription apps

    • Users get more experience and service facilities.
    • Subscriptions can be weekly, monthly, or yearly.
    • Subscribed users are more loyal and engaged.

    Disadvantages of the subscription apps 

    • Does not easily translate to a subscription.
    • Sometimes difficult for users to determine whether payment for a subscription or not.


    Earning profit through the business mobile app is the first level requirement of enterprises. It is imperative to consider the monetization model from the very beginning of the mobile app development process. Based on your requirement and the type of product/service offering, finalize the app monetization model. Discuss the need with experienced mobile app developers, research the marketplace, and enable a particular model. Additionally, Mobi India will help you select the best monetization model and enable the same in a hassle-free manner.

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