Most of these resources are scarce. Having spent its money, time, and effort in the mobile app development, a company is expecting to make money with apps and suffer no loss. The prosperity of investing is still not the vital element in getting a fantastic ROI. Alternately, business operations must correspond to the intelligent use of incentives. Not only are applications development and deployment important but it’s also constant updating that should be rewarded. After the item is paid for, the growing popularity can yield a solid financial aid to the business owners and founders. Yet, it is not clear what”incentives” would contribute to the financial success. When installing an application is as easy as ABC, the best way to make money from apps without ads is a sensible question.

Why not make it paid?

Before we start, it should be emphasized that having users pay for mobile apps, though being a seemingly handy technique of this thing monetization, one is running the risk of dooming a job to collapse.

The marketplace is flooded with applications available free of cost. Consequently, browsing the paid counterparts on Play Store or App Store is too moot an endeavor to undertake. The chances are you won’t even be discovered. If the difference is not worth paying for, there is absolutely no reason to buy goods or services when you can get free ones instead. Whether this gap is substantial, pricing problems happen. Often, finding a sweet spot between under- and overestimated value of what joint efforts have resulted in may be challenging enough.

Instead of bothering their heads about the ideal pricing programs for their products, most app suppliers have chosen to go free.  The recent report shows that the trend is steady since publicly distributed applications hold the market share of over 94 percent by now.

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The best strategies for making money from free apps

Revenue-generation plans, as is the general rule, are unequally efficient. Lots of them are discomforting users.  Blended app monetization methods employment thus describes compulsory measures for companies eager to cover their costs and make a profit.

The most popular Free App Monetization Methods, which might be divided into two classes. In the former case, the revenue source is advertisers’ spendings made with a view to marketing their products; in the latter one, the customers are in a position to find out whether they are ready to buy goods and services the app itself or as a mediator offers after being installed.

1.1. Advertising.  The least energy-consuming approach to make revenue within the free-app version is utilizing in-app ads. Media space was promoted to get ad placements there ordered for extra brand marketing on target markets. An ad buy is thus a simple transaction that allows using the visitors whenever end users see an ad their displays. With a view to creating a better UX, you need to avoid your advertisements from being intrusive and pick smartly, given that the next ad types:

  • Banner ads are integrated to appear on the top or bottom of a device screen. Making your mind up to fill the media room with those’rectangles’, you want to find a balance between their instructional value and moderate expressiveness not able to divert users (actually, this is true for many different ads).
  • banner advertisements  are either banner or videos displayed full-screen which are increasing the Conversion Rate when implemented sensibly.
  • Native advertisements  are the ads harmoniously integrated in an app motif so the UX and the ad could coexist and complement each other. As a consequence of the efficacy, native advertisements often be a piece of articles sponsored by a certain firm.
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Pros: Now that advertising has grown in popularity so radically, many advertising libraries and libraries are here so as to serve ads without software engineers’ writing additional lines of code. In any case, applying machine learning-based algorithms in Internet marketing might cause the broader engagement and optimized earnings.

Cons: The apps’ tests are negatively affected, which can be very like a chain reaction. Most users are annoyed with the ads. This annoyment makes people rate applications seriously and write negative reviews. It is a bad influence on downloads and, consequently, the earnings. Along with it, advertisements suggests hidden costs associated with ad network usage, app performance, and ad-related code maintenance effort. In this manner, APIs can not just offer you an access to advertising libraries but they also have processing capacity degrading the overall performance.

E.g. Twitter, Instagram, Facebook

1.2. Sponsorship.  If a business owner (an advertiser/ a host ) is looking for a strong commitment and a continuing agreement with a platform-provider, it may allow a free-app owner market their merchandise via sponsorship. In cases such as this, a company enters into a partnership with a mobile app provider on mutually beneficial terms. The application, however, need to have a fantastic user base and be popular among the potential customers of the company offering its own nuances. The question naturally arises: How do apps make money without ads?

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E.g. Tinder, TripAdvisor, CityMapper

2.1. Subscriptions.  Another way to advertise free apps is by charging their customers. The content, not the functionality, is what appreciated most in subscription-based apps. This model is typically applied in companies promoting B2B initiatives and requires applications to provide their solutions (distribute their content) to the customers regularly.

Pros: As a source of income, subscription fees are more reliable than advertising, which is perfectly clear to Apple. After an application keeps a subscriber for a year, the standard 70/30 earnings divide transforms and the app developers’ share amounts to 85%. Consequently, subscription-based apps tend to create more in average earnings in their clients than if they were taking advantage of unique procedures. The clients, in turn, will be engaged using an app after buying a subscription.

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Cons: The substance which the application offers must always be of a high quality. When it is not, the odds are customers will cancel the subscription whenever they can. So much is at stake that it keeps the subscription-based version from turning into a viral success.

E.g. Netflix, the New York Times, Forbes

2.2. Freemium.  This variant is designed so that there are”lite” (“free”) and Pro (“premium”) versions of an application. It’s becoming more evident that companies should stop relying too much on advertising revenue and become more user-oriented. When applied correctly, this variant could offer a steady revenue stream.

Pros: When an individual finds at setup he or she does not have trouble working with the limited functionalities and features, the”lite” version will do. Should they try upgrading to Pro, a range of characteristics is widening and an application includes no advertising.

Cons: The freemium must focus on making more clients pay for updates. As usual, it is about finding balance. Deciding sensibly on what attributes to generate free retaining the first offering not too rich, offering a clear explanation of the greatest version benefits, and offering a reasonable pricing are the steps one should take.

E.g. LinkedIn, Dropbox, Skype

2.3. In-App Purchases.  What is more, absolutely free apps make money when they feature things available. Purchases are not material things. They are virtual and used only inside the application. Thus, people can discover some items or services for a single use or come to have a permanent access to them.

Pros: A revenue is sure to be large if the app audience that is buying items is broad. Whatever the case, IAPs give users incentives to remain in the app more. The more time is spent, the larger your income is.

Cons: With rare exception, the variant is chiefly employed in games.

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Tips for Choosing the Best app monetization method

Not only should you know about the ways to create with a free application, but you want to ascertain which favorite app monetization methods are most likely to be an ideal fit for your application specially. Significantly, how engaging an application is, what strategies are used successfully by the opponents working on your specialty, who the app audience are and if they’re ready to pay (regularly) — these are the general points to be clear about. But if we are talking about making concrete recommendations, here they are:

1. 1 way or another, a free application will appear to be attractive either for advertisers as a platform for placing ads or for customers as a source of quality content they are craving to buy. So, who is your app appealing to more?

2. ) Care about your audience.  Pay focus on real user behavior  — establishing a heat map to track it could be of great aid.

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3.  Consider those approaches that would interfere with the UX as naturally as possible.

As clichéd as it sounds, your product must stick out. Too many apps are being printed and only taking great pains you will receive your application discovered and widely used. Considering that the achievement of a monetization strategy depends heavily on the UX, possible options should be considered from the app development period yet.

To start with, an app has to be adapted to different platforms.  We have discussed before how different iOS and Android are, their demographics inclusively. As a result, the chances are you will have to not only maximize ad formats but also choose unique strategies. At first, choices will be made based on the external details. After the app launching, do not be afraid to gain from the data analysis tools, which are aplenty now. In actuality, there has to be adequate users for more precise results. Here, we are turning to the subject of reasonable pricing. Charging too much will result in nothing but the loss of business (there’s sure to be another app that is requesting to pay less or utilizes ads as a source of revenue), that’s for certain.

Interestingly, though users normally don’t expect much from free offerings, their loyalty is rather shaky too. Using multiple versions of monetization can be, in certain conditions, beneficial if you don’t overdo it. At times, it’s far better to rely on a single method than to force feed customers various advertisements, IAPs and subscription offers at the same time.


In general, free apps are our present and our future. If the only thing that prevents you from making your product more accessible is that the doubt about how to make a profit from the free app, we have got some amazing news.

Irrespective of your app course, you’ll discover monetization options to select from. The above strategies are attainable and countless examples could be given to establish it. Even free apps are rewarding provided that they are used. Therefore, be wise, creative and let folks get absorbed by your application

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