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App Monetization Model To Earn Revenue From Free Apps

You created a great app for the users that is going to solve almost all the issues and problems. You used the right tech stack, the right platform, the apt kit, and many more crucial things. You made almost all the decisions just right.

But, now you are stuck whether to make your app all free or go ahead with making it a paid app. Meanwhile, on the other hand, you are very well aware of the fact that free apps do outnumber the paid apps, be in terms of more download, or profits. Sticking to the fact, try to offer your application free in the initial phase of its launch and after seeing and noting its success, make it a paid app for additional features.

We are still tied with the question, how do free apps make money, what is the process behind it and is it magic.

Well, free apps do make money, there is no doubt in it, but there is a process or better say some methods that make free apps generate more revenue as compared to paid ones. So, without further ado, let us check out those monetization methods one by one-

According to Statista, these are the most popular monetization methods used by mobile app publishers.
Using a few of the methods, let us start how do people make money through Free apps-

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Table of Contents


Advertising is the most common and most important method in order to generate revenue through an application via the third party ad network.

For this, an app owner is required to display commercials inside their mobile app and get paid from the third-party ad networks. And for that, the owner can get paid every time an ad is displayed, per click on the ad, and when a user installs the advertised app.

Meanwhile, there are basically 4 types of ads displayed by the app providers-

  • Interstitial ads- these are the full-screen pop-ups ads that are displayed at specific frames and can be closed down by a close button.
  • Banner ads- these are the ads displayed in different sizes at the top or bottom of the application.
  • In-app video ads- These ads are displayed automatically and generally used as a reward video in exchange for some in-app reward.
  • Native ads- it is like the natural elements in the app that is manifested to promote a product or a mobile app.


This is the second most important method in the monetization strategy. App publisher can initially provide free content for a limited time period and then charge some fee for unlocking the features or advanced features.

In-App Purchases:

In-app is another method used by app publishers or app owners in order to generate revenue. In-app purchase is basically a way through which one can make the purchase within the application. The method is basically used to access special contents or features in the application.

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Though, one of the less commonly used strategies, but it still the interesting one.

In a layman language, sponsorship in your application can become the most powerful app monetization strategy, if the app publisher keeping the target audience in the mind builds the right niche app and launch it on behalf of another company.

Meanwhile, app publishers are required to consider sponsors whose target audience is exactly the same as the one being addressed by the app. Therefore, before developing the app, it is essential to create a list of organizations and brands who could benefit from the partnership.

Referral Marketing:

Referral marketing is another way of promoting a third-party product or service in order to optimize revenue opportunities.

Collecting And Selling Data:

Well, though not a good practice and many measures are taking place by the companies regarding the data used by the application.

However, the data which is collected by the application like user’s behavioral app usages, time spent on the application, taste, choice, etc can be used by researchers for various different purposes.

This implies that the app publisher can sell the data to the researchers and make a good amount of money.


Last but not the test, crowdfunding is another strategy in order to generate revenue.

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Here in this method, startups and companies do share their idea on different platforms like Kickstarter, Patreon, Crowd Supply, Fundable, Indiegogo and Chuffed in search of donations to fund the app development cost and promotion of the application.

These are the best way to generate revenue from your mobile application, but in order to get a similar result which you are expecting from the starting of your application, make sure to hire the reliable mobile app development company. See, if they can offer you exactly the same service you are looking for or not before finalizing the firm.

Nishtha KumariAbout the Author:

Nishtha Kumari is the Content Specialist at Appventurez, a leading mobile app development company that offers cost-effective Android and iOS application design and development services in USA and India. Her priority is to cover up new technologies and techniques for her audience.

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2 Responses to “App Monetization Model To Earn Revenue From Free Apps”

  1. Deltaairlines says:

    Thank you for sharing this useful information. This is really informative.

    • EXEIdeas says:

      Welcome here and thanks for reading our article and sharing your view. This will be very helpful to us to let us motivate to provide you more awesome and valuable content from a different mind. Thanks again.

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