Mobile apps are now a huge business. In 2022, they made about $475.9 billion. And by 2024, this number could grow to around $935 billion. Reports show that money from mobile apps is rising fast. There are about 2 million apps on Apple’s App Store and 3.3 million on Google Play. So yes, competition is tough. Also, since most users want free apps (only 4.9% of iOS apps are paid), you need smart ways to make money. Good app monetization strategies must also include strong mobile app security and a flexible app setup. This is very important, especially for OTT applications.
In this post, we’ll walk you through 16 app monetization strategies that really work to make money from apps. These include ads, in-app buying, and even new ideas. We’ll explain how each of these app monetization strategies works, give examples, and share the pros and cons. These app monetization strategies are the heart of successful mobile app monetization. If you want to stay ahead in the fast-moving app world, you’ll need these.
The 16 Proven App Monetization Strategies
There is no single way that works for every app. Most apps use more than one app monetization strategy. For example, a content app may charge to download and also offer a monthly plan. Others may be free but show ads or sell extra features. The main thing is to match the way you earn money with how users use the app. You should plan how you will earn money early. It must also fit with your app design and features. Now, let’s walk you through 16 simple ways app monetization strategies make money. Many top apps have used these.
1. In-App Advertising
Your app shows ads (banners, videos, pop-ups, etc.), and you earn money when users see or click on them. Many free games do this. For example, they show a video ad between game levels or place a banner at the top.
- Pros: You can make money from every user. No need for users to pay. Some ads, like rewarded videos, give users something (like game coins) in return. These ads work very well. They are used in video apps and even in work tools.
- Cons: Too many ads can annoy users. Most people don’t click banner ads. Also, ads may show your rivals’ products. Plus, ad rules from companies like Google must be followed. If not, your app may get in trouble.
Use ads that match the app’s look. Rewarded ads (users watch to earn stuff) work best. Try different ad networks and test how many ads to show for the best results.
2. In-App Purchases (IAPs)
IAPs let users buy things in the app. This can be coins, tools, more levels, or new content. For example, a game may sell a pack of 100 coins or a forever power-up. IAPs are very important for games and streaming apps. In 2024, they made about $150 billion.
- Pros: Users can try the app for free. Then, they can choose to buy. This brings in more money from those who pay. IAPs are easy to add if planned in the app’s design.
- Cons: It’s hard to find the right prices. If things cost too much, people may stop playing. Most users don’t buy anything. You also need to watch for fraud and cheats.
Make special offers for each user. Try deals with timers or first-time buyer discounts. Use tests to see what works best for each group of users.
3. Freemium
These apps are free to use, but charge for extras. Think of Spotify. You can use it for free, but the paid version has more features. This model is huge. About 98% of Google Play’s money comes from freemium apps.
- Pros: Many people try free apps. That builds a large user base. Later, some users pay. This model works for many kinds of apps.
- Cons: Most users never pay. The free version must still be good. If not, people leave. You also need to build the app to handle both free and paid users.
Don’t sell everything at once. Unlock paid features as users keep using the app. Try giving a short free trial. Also, test where and how much to charge.
4. Subscription
Users pay again and again to keep using the app. This is great for apps with content or services, like Netflix or Calm. Subscriptions made about $13 billion in 2021. This method is steady and strong.
- Pros: You get steady money. It also helps keep users for longer.
- Cons: People may cancel. You must keep adding new things. Also, you need to protect their data and payment information. People also get tired of too many subscriptions.
Offer different plans. Some users may want to pay monthly. Others may like yearly deals. Try free trials too. They help users test before buying.
5. Paid Apps
These apps cost money to download. This old model still works for some apps. Around 4.9% of iOS apps are paid. But it can work well if your app is useful and safe.
- Pros: You earn right away when someone downloads it. The app is simple—no need to sell things inside.
- Cons: Most users want free apps. It’s hard to get lots of users this way. But it can work if your app solves a real need.
Offer a discount for a short time. You can also sell it with another app to add value. Try different prices to find what people are willing to pay.
6. Affiliate Marketing
Your app promotes other products. If users buy through your app, you get a cut. This is great for apps about travel, money, or shopping.
- Pros: Users don’t pay anything. If done well, it feels natural. It works best if users already trust your app.
- Cons: You rely on how well others sell. If the product is a bad match, users may stop trusting you. Also, you must keep user data safe.
Only promote things that fit your app. For example, a fitness app can link to sports gear. A learning app can suggest online courses. Test what links bring the most money.
7. Sponsorships and Partnerships
Companies pay to be in your app. They may show banners or create special content. You see this a lot in fitness and learning apps.
- Pros: Big brands pay well. It also brings in more users if the partner promotes it too.
- Cons: You need to find the right partner. A bad one can hurt your image. You must also protect user data shared with sponsors.
Make the deal feel like a fun feature. For example, add a “sponsored challenge week” or a special content pack. Watch how users react.
8. Data Monetization (With Care)
Some apps collect user data. They sell this info or use it to show better ads. Map and location apps often do this. But it must be safe and follow the law.
- Pros: You earn money without changing the user’s app use. If users agree and it’s clear, it’s fine. Streaming apps often use this method.
- Cons: Privacy rules are strict. You must follow laws like GDPR. If data gets leaked, your app may be in big trouble.
Be honest. Ask users if they want to share data. Give something in return, like discounts or extra content. Try different ways of asking to see what builds trust.
9. Transaction Fees
When your app helps people make transactions, like booking services or buying items, you can take a small fee from each sale. For example, a ride-sharing app might charge a service fee per ride. Or a marketplace app might take 5–10% of each sale. This model works well because your earnings grow as more people use your app. Simply put, the more people trade, the more money you make. Many successful apps use this strategy because it’s tied directly to growth.
- Pros: This model grows with your success. As users make more transactions, you earn more. Also, users only pay when they make money, which feels fair. It’s also great for testing different prices using A/B testing.
- Cons: You need a lot of users to make good money. If you charge too much, you might scare away sellers or buyers. Plus, handling payments can get tricky. You have to deal with refunds, security, and other mobile app security concerns.
Try using a simple fee. For example, instead of charging a percentage, charge a flat $0.99 per transaction. This could work well for small sellers. You can also bundle special features into a subscription, so heavy users save more. Just make sure your mobile app architecture supports easy updates.
10. Crowdfunding
Crowdfunding involves collecting money from individuals who share your app concept. This is usually done prior to developing the app. You can publish your concept on multiple platforms. Individuals supportive of the concept can contribute. They receive neat rewards in return, such as early access or limited items. For instance, a game developer can provide “founder’s packs” for pre-launch backers. This is not just a source of money but also creates an audience of early supporters.
- Pros: You receive money up front and also discover whether your app is actually wanted by others. Your backers become your most ardent supporters in many cases. You don’t have to surrender equity like investors.
- Cons: You don’t have any assurance that you’ll receive sufficient money. Crowdfunding is time- and labor-intensive. Rewards (such as T-shirts or special items) also cost you money. They can also impact the structure of your app.
Provide something extra beyond the app. You might share behind-the-scenes material, such as progress updates. Or offer exclusive items to high-level backers. Both of these rewards make supporters feel like they are along for the ride. And don’t forget A/B testing your rewards to determine what is most effective.
11. Email Marketing
When your users sign up with their email, you can email them with updates, promotions, or offers. For instance, a shopping app may send users a discount code since they haven’t made a purchase in a long time. A game may send updates on new levels or items. Email is quite effective—according to research, it returns $36 for every $1 you invest. Moreover, it reminds users of your app even when they haven’t opened it recently..
- Pros: Email gives you a direct way to reach users. It works well—many people buy things after getting an email. Plus, you can automate emails with tools that make it easy.
- Cons: You need users to agree to get your emails. If you send too many, they might mark you as spam. Also, it’s slower than push notifications or texts. You must also store email info safely to keep your app secure.
Don’t send the same email to everyone. Send new users a welcome message. Reward loyal users. Try to win back users who haven’t opened your app in a while. Personal emails get better results. A/B test different emails to find the best ones
12. SMS Marketing
SMS marketing sends short texts to users with deals or updates. For example, a food delivery app might text a promo code. An online store could send a flash sale alert. Texts work well—almost everyone reads them, and many people take action right away. They show up instantly, so they’re great for fast promotions.
- Pros: Text messages have super high open and reply rates. Most users read them in just a few minutes.
- Cons: Users have to give clear permission to get texts. If you send too many, people will unsubscribe. You also have a small space, so the message has to be short. And don’t forget—keeping phone numbers safe is part of good mobile app security.
Send messages at the right time. For example, text dinner deals in the evening or send sale alerts on weekends. You can also use location. If a user is near your store, send a friendly promo. A/B test your messages to see which ones perform best.
13. Offerwalls
An offerwall is a section in your app where users can do simple tasks to earn rewards. They might watch a video, fill out a survey, or install another app. This is super popular in games. For example, players might get 50 coins for downloading a new app. It’s a smart way to earn money without asking users to spend their own.
- Pros: Users get to earn rewards without paying. This keeps them engaged. You also make money from advertisers.
- Cons: Offerwalls can look messy if not done right. Some tasks might feel annoying or fake, which could hurt your app’s design and trust level.
Add offers at the right moment. For example, after finishing a game level, ask: “Want a power-up? Watch an ad!” This makes the offer feel helpful, not random. Try A/B testing different spots to place the offerwall.
14. Virtual Goods and Customization
Selling digital items—like skins, outfits, or stickers—is big business in the domain of app monetization strategies. Games like Fortnite make billions this way. But it’s not just for games. A photo app might sell filter packs. A chat app might sell stickers. People love buying things that show off their style or make them stand out.
- Pros: Once you create these items, they don’t cost more to sell. Users enjoy customizing their app experience. Adding new items keeps people coming back.
- Cons: You’ll need artists or designers to keep making cool stuff. If you offer too much, it might feel less special. Also, some users can’t afford expensive items and may feel left out.
Add holiday or event-themed items to create excitement. Halloween costumes or Christmas stickers make people want to buy quickly. Also, let users send gifts to friends—this spreads the fun. Make sure your app design supports frequent updates. Test different designs to see what users like best.
15. “Pay-to-Skip” Mechanics
Some apps make you wait for things to finish, like building a house in a game. A “pay-to-skip” option lets users pay to skip the wait. It plays on the fact that people don’t like waiting. Some will gladly pay to move ahead faster. This model is common in many top apps.
- Pros: Users who don’t want to pay can still play. But those who value time can pay to go faster. It gives both groups a choice.
- Cons: If used too much, it can feel like a money trap. Players might get frustrated if they always have to wait or pay. Also, if prices are too high, no one will pay. Too low, and it feels too cheap.
Be clear about the cost. Say things like “Skip for $1.99” or offer bundles like “5 skips for $9.” People like knowing what they’re paying for. A/B test different pricing to find the sweet spot.
16. Cross-Promotion (of Your Own Apps)
If you’ve made more than one app, promote them inside each other. This is called cross-promotion. For example, if someone plays your puzzle game, you could show an ad for your other game. It’s a smart way to keep users in your world of apps. It also saves money on ads.
- Pros: You don’t have to pay for ads to get users to try your other apps. It keeps people inside your brand family.
- Cons: This only works if you have more than one app. Also, if your apps are very different, users might ignore the promo. And if you promote too much, users might get annoyed.
Use your own data to target the right users. For example, only show game ads to users who love games. Match the promotion to the user’s interests. A puzzle game fan might not care about a racing game, but they’ll love another puzzle. Use good timing and smart matching to make this work better.
Conclusion
Making money from your app is like walking a tightrope—you have to find the right balance. Try many app monetization strategies, watch the results, and always think about the user. In this post, we shared 16 app monetization strategies to earn from your app. These included common options like ads and in-app purchases, plus new ones like blockchain tools.
It doesn’t matter if you’re building OTT apps, games, or tools for work. Good mobile app monetization strategies start with knowing your users. Then, use the right mix of ideas that match their needs.
At Linkitsoft, we implement the best app monetization strategies. We suggest trying things out carefully. Ask users for feedback. Keep improving. One simple trick is A/B testing. It helps you test what works best, from price plans to which features users get.
If you use the right app monetization strategies with a top app development company, just like Linkitosft, your app can make money for years. Just remember to focus on security, smart design, and OTT trends. Need support? Talk to us, we are experts in the app monetization strategies business, and we can help you build success that last.
