How Do Free Apps Make Money And How You Get Profit From Mobile

Regardless of your app idea, you can still launch a free mobile app, drive free app downloads, and have a successful app that makes money. Some of the most popular mobile apps are free and still get plenty of app downloads. There was a time when making money from mobile apps was a questionable idea.

  • Selling merchandise may even be branded keepsakes or products if your business does not include selling any physical merchandise otherwise.
  • Once the user is convinced of their services and features, they can upgrade to the pro-plan to increase usability and the feature stack.
  • They send app users notifications with daily deals and discounted items to encourage more purchases.
  • But don’t you worry, here’s a perspective to guide you through your decision making process.
  • Automatically renewing subscriptions means the app automatically charges user fees every month, six months, or once a year.

All of these transactions will be managed by your app store and the app owner gets a commission for every purchase. Today, the average owner of a mobile device uses 7-8 applications daily. At the same time, only 5-10% of mobile app users are ready to buy a paid app, and around 98% of profit and downloads come from free mobile apps.

Just keep in mind that app monetization models are quite flexible. It’s best to mix the models as per your offerings and audience — creating a good balance of revenue generation and creating value. You may want users to get the best experience — so minimizing ads and upselling premium may work for you.


Dropbox allows the user to experience the platform for free seamlessly. Once the user is convinced of their services and features, they can upgrade to the pro-plan to increase usability and the feature stack. How many times have you thought of an innovative business concept, and later you came across a pretty similar business model over the internet? Well, this happens because the digital sphere is growing as we speak.

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With no further adue, let’s unveil the main advantages of creating free apps and the most efficient app monetization strategies. But before generating revenue from the app, you have to develop one. The subscription model yields a win-win situation for both businesses as well as users.

How To Ensure The Creation Of A Revenue Generating App?

Most physical items are sold with the help of free mobile apps. Email marketing, due to its wide usage, has become less effective today. The biggest advantage is for the top branded apps, while for a startup it is less powerful. Email marketing has always been a profitable strategy in any industry, which is a good practice for restaurant app development. These ads are full-screen pop-ups shown in a specific moment within an app.

Email marketing is perhaps the oldest yet still a super-result yielding method of earning revenue from your free mobile app. Email marketing, when done strategically, can be profitable. The sponsorship monetization model is the best if you want to make money from an app. However, this model is perfect for apps that already have a robust user base. This monetization model is viable when you have a strong user base to get more purchases plus, the transaction within an app can be paid through credit or debit cards.

do free apps make money

It’s an effective solution because the user expects everything to be free. It is difficult to put a single figure on how much money you can make from an app. It totally depends on your app idea, its capabilities, and the problem it is solving that really defines the amount of money you can make with the app. On an average, entertainment apps earn around $4,000 daily, while gaming apps make around $20, 000, so you can’t really put an exact number here. There are a number of ways in which you can make money without your app users having to pay a single penny, while in others your app users generate your revenue.

When you think of music streaming services, Pandora is probably not the first one that comes to mind anymore. That said, it’s consistently one of the top grossing apps in both app stores —despite remaining exclusive to users located in the United States. Phaedra Solutions have won awards for the best iPhone app development agency and top mobile app development agency. We believe we will be able to help you figure out how you can earn from a free mobile application. Putting adverts in an app is one of the common or can say effective freemium models used by most for selling free apps. Free apps without ads can’t utilize common ways or models of monetization.

How Can I Earn Money With My Phone?

However, the set of features is bigger, and users are tempted to try more. The subscription model will set up revenue streams based on how often the app owner wants it to be renewed – it could be weekly, monthly, or anually. This type of monetization strategy is mostly used by cloud storage applications, audio or video streaming apps, or digital news portals. App users gain access to new content or features based on their type of subscription. This is a great way to monetize your apps without displaying ads. The freemium model makes it possible to sell digital or physical products, premium features, or new app content.

Selling merchandise may even be branded keepsakes or products if your business does not include selling any physical merchandise otherwise. From among the most popular mobile apps more than 50% make use of in-app purchases to earn revenue. In future, the number of such apps is only going to increase.

App publishers should do a market research, define target users, check other app developers success stories. The main challenge is to get awareness, acquire loyal users and choose the right revenue model. This will lead to greater profits and help keep your customers satisfied. If you are looking for a simple digital storefront tool that allows in-app purchases, Swarm is there to help. It unlocks additional features that are not available on initial free downloaded version.

And investors find this metric very important, as having a large user base can be crucial for monetization and higher return on investment. Also, this large user base that comes with free apps can be crucial in funds acquisition. Reach RubyGarage and our experts will help you build a successful and competitive mobile application. Therefore, set a goal of attracting as many users as possible and do your best to succeed. These ads take a whole screen and typically appear when users launch or close an application.

Can You Become A Millionaire By Making An App?

Nowadays, especially when you’re operating in the digital world super-cluttered with businesses offering the same services as you’re. Such users are more likely to purchase an in-app feature or spend money to expand the application’s functionality further. Therefore, the freemium model is increasingly becoming an integral part of the overall tech-business world. So, with the monetization tools for your free app out of the way – let’s start digging deep into the freemium model of app monetization. The email that you’re sending can include a marketing pitch and marketing materials.

Their app allows users to complete the shopping and purchase process in just three steps. You can follow their lead and apply their strategies to your app if you’re selling a physical product as well. While iOS may have a higher number for the average purchase, Android dominates in terms of total users. The average purchase per user on iOS platforms are more than double Android’s. I’m not saying your mobile site shouldn’t have a checkout page or have ways to generate money through credit card purchases.

Usually, these products have a unique feature – offering solutions for peoples’ pain points. Thus, in order to receive money from a free app it is necessary to set up revenue streams. Based on the statistical data, the most effective monetization method in 2017 was the use of rewarded video ads. This is a win-win strategy for both the app provider and customer, as once the user watches an add, they receive points and app bonuses. The steps of making an app consists of wire-framing, app design, and programming. If you hire an experienced and skilled mobile app development company like us then you will have steady and concrete app development.

As a part of referral marketing effects, you can place some content inside your free app to promote someone’s application, products, services, etc. You get a commission for a number of clicks, app installations, etc. While in-app ads are one of the most popular types of free apps monetization, it might be a good idea not to irritate users with too many ads. As a result of irritation, users are less likely to click on ads, decreasing the conversion rate and your app ads revenue. This guest post from JatApp gives an overview of the top 4 proven monetization models for free apps, so you can choose the right one for your app. In-app advertising is one of the most popular monetization strategies, in which app owners get paid to serve ads on their app.

These added elements can be sponsored content or videos used to promote a particular brand or product. Other statistics suggest that video ads were the most powerful monetization strategy according to a global app publisher survey. 82% of app publishers do free apps make money stated that they utilize video ads to make money from mobile gaming content. On the other hand, non-gaming publishers were 76 percent in total. Hire our experienced app development team that has experience building 4400+ mobile apps.

And most importantly, you’ll have to give away a huge chunk of the purchase — 30% as commission to Google Play and App Store. The key to making the freemium model work is providing great value to the users with the free app. Well, it’s done through a mobile ad network — a marketplace where you can sell the ad space to the advertisers. It connects you with the advertisers who can then place their ads in your app. Some of the top ad networks in the market are AdColony, Unity Ads, ironSource, Apple Search Ads, Admob, and Airpush.

Be it a dating app like Tinder or delivery service like Glovo, MVP is a cheap prototype which you give to the public in order to collect feedbacks. Analyzing this feedback you see what the age bracket and occupation is and other information about the most active users. The point here is to choose the most appropriate type according to your application. Besides, you can choose how you will be paid for the ads’ demonstration.

Promotion, Customer Acquisition Strategies

Finding the right mix of monetization strategies for your app to make money is a critical piece of the puzzle that decides your business success. But don’t you worry, here’s a perspective to guide you through your decision making process. This is a decent method to increase your income from apps if you lack a wealthy player on the market who is ready to cover your costs. Prior to choosing any of the monetization models, you need to understand the type of your application. There are lots of options on how to earn money from free apps.

This can be in a mobile app with only a visual layout or even a sketch presented to a user group for their feedback. Here the users must understand what is being offered by the app and how it solves their problems. Through CTR, it adds up to the primary income of your app. Also, with in-app ads, the possibility of reaching your target audience is higher.