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How Free Apps Make Money

In Advertisements, the app maker can display ads in the app and get paid for it. Payments can be based on impressions, clicks or installs. Ads can be video based, native, interstitial or static banner. Too many ads can be intrusive and brands need to be careful about not overdoing it.

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How Free Apps Make Money

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  1. How Free Apps Make Money Proven app monetization strategies

  2. 1. Advertisement In Advertisements, the app maker can display ads in the app and get paid for it. Payments can be based on impressions, clicks or installs. Ads can be video based, native, interstitial or static banner. Too many ads can be intrusive and brands need to be careful about not overdoing it.

  3. 2. In-App Purchase In-app purchases are upgrades, usually in the form of additional features, power-ups or level-ups. In-app purchases are virtual items ofered within the app, for improved user engagement and experience. They are more popular among iOS users, compared to Android, and is preferred model for gaming companies.

  4. 3. Subscription Users can use the free app trial version for some time, and then subscribe to have full app access for a selected period (daily, weekly, monthly, annual, etc). Some apps initiate auto-renewal for subscription, to ensure the user is not lost.

  5. 4. Freemium With freemium app monetization strategy, users can download a free app (usually comes with a free trial or access to limited features) and upgrade to a premium version, if they like the app and want to engage with it further. Freemiums are usually the preferred plans for health and ftness apps .

  6. 5. Sponsorship A brilliant revenue making model (though not widely popular) it works best for apps that already have an active user base. The makers need to fnd sponsors with similar target groups, and then make design and feature updates to the app for the sponsor brand.

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