{"id":13571,"date":"2021-07-08T12:29:43","date_gmt":"2021-07-08T06:59:43","guid":{"rendered":"https:\/\/www.arkasoftwares.com\/blog\/?p=13571"},"modified":"2026-04-13T13:20:54","modified_gmt":"2026-04-13T13:20:54","slug":"how-do-free-apps-make-money","status":"publish","type":"post","link":"https:\/\/www.arkasoftwares.com\/blog\/how-do-free-apps-make-money\/","title":{"rendered":"How Do Free Mobile Apps Make Money in 2026?"},"content":{"rendered":"<p><span style=\"font-weight: 400; color: #000000;\">There are paid apps\u2014one pays to download and use them\u2014for example, 1Weather, Bouncer, Scanner Pro, or MediaMonkey.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">And then there are free apps, like WhatsApp, Facebook, Twitter, Instagram, Ludo King, Adobe Scanner, and millions of others.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Most Android and iOS users rely on \u201cfree\u201d apps to connect to the world, entertain themselves, play games, and even make their daily lives more comfortable. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Most of the excellent-quality apps with great features have millions of downloads on the Play Store and the App Store. So how do these apps make money? <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">More importantly, if you have a great idea for a killer app and wish to let it be used for free, how can you make money with it in 2026?<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Do you ever wonder how free apps make money? Let us solve this mystery and find the most promising ways in which a great app can make money.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\"> In many cases, some apps employ more than one approach to make money. The income from the apps could not only be your passive income but can become your biggest blockbuster.<\/span><\/p>\n\n<p><img data-dominant-color=\"40b6d4\" data-has-transparency=\"false\" style=\"--dominant-color: #40b6d4;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13663\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/Free-Apps-Make-Money.jpg\" alt=\"Free Apps Make Money\" width=\"717\" height=\"500\" \/><\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"The_Free_App_Ecosystem\"><\/span><span style=\"color: #000000;\">The Free App Ecosystem<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000000;\">According to <a href=\"https:\/\/www.statista.com\/statistics\/271644\/worldwide-free-and-paid-mobile-app-store-downloads\/\" target=\"_blank\" rel=\"nofollow noopener\">Statista<\/a><span style=\"font-weight: 400;\">, the total number of apps (free and paid) downloaded is increasing every year. In 2016, it was at<strong> 140.68 billion<\/strong> downloads, and that has gone up to <strong>218 billion<\/strong> in<strong> 2020<\/strong>. A stunning growth of close to 55% in just four years!<\/span><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Like anything free, free apps have always outnumbered the premium apps market by many times over, as far as downloads go. The profits and revenue earned may be a comparison of apples and oranges. <\/span><span style=\"font-weight: 400;\">According to SensorTower<\/span><span style=\"font-weight: 400;\">, even if you take the biggest money spinners of 2020, you will see the top-grossing apps, including a combination of free and premium apps, with the top two places going to TikTok and YouTube, both free.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">One also has to remember that an average person spends more and more time on their mobile phones daily; that increased from 4.9 hours per day in 2019 to 5.5 hours per day in March 2020 and jumped to 6.9 hours per day in April 2020. This was revealed in a study sponsored by Vivo, conducted by CMR, and <\/span><a style=\"color: #000000;\" href=\"https:\/\/www.businesstoday.in\/technology\/news\/average-time-spent-on-smartphone-up-25-percent-to-almost-7-hours-amid-pandemic-vivo-report\/story\/424790.html#:~:text=The%20study%2C%20commissioned%20by%20handset,hours%20on%20average%20in%202019.\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">published in Business Today<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">On average, an American checks her mobile phone<span style=\"font-weight: 400;\"> every 12 minutes\u2014that is, at least 5 times each hour\u2014when she is not using it! <\/span><span style=\"color: #000000;\">Ofcom, the UK telecoms regulator, found that<\/span><span style=\"font-weight: 400;\"> of the total time people spend online, close to four-fifths of them do it via their mobile devices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Smart insights have compiled multiple reports<\/span><span style=\"font-weight: 400;\"> on mobile phone usage, and according to one of them, close to 90% of the time people use their smartphones, is spent using apps of some kind\u2014Facebook, Instagram, Netflix, games, eCommerce, and many more. The best news is that the share of mobile Internet traffic and usage is bound to increase exponentially and leave the desktop market behind.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Another survey from Statista found<\/span><span style=\"font-weight: 400;\"> that the percentage share of paid apps in total app market revenues has almost halved from 76 percent to 37.8% over the last 3 years, signifying the growing market for free apps.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">SensorTower estimated<\/span><span style=\"font-weight: 400;\"> that global app revenues in Q3 (July\u2013Sep) of 2020 were USD 29.3 billion, with 36.5 billion new downloads. The gross revenues marked a whopping 32% year-on-year increase over Q3 of 2019.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400; color: #000000;\">So, all these statistics point to one thing: free apps are big money-churners for their developers and owners and if you thought otherwise, then you must change your stance. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">You need to find the killer combination of a great app offering a value proposition for its users and a sustainable monetization model for your free mobile app.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">We believe you are reading this article because you already have a great idea for <a href=\"https:\/\/www.arkasoftwares.com\/blog\/how-to-create-an-app\/\" target=\"_blank\" rel=\"noopener\">developing a mobile app<\/a>\u2014a game, an OTT service, a utility, a social media rage, or any other thing. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">But probably you are wondering what the different monetization models for free apps are and how you could make money from them in 2022; isn\u2019t each one of them already milked to the extreme?<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Don\u2019t worry, you have come to the right place, and we will show you the different monetization models and how to use the most suitable one (or combination) of them to make money from free apps in 2026.<\/span><\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"The_Future_of_Free_Apps\"><\/span><span style=\"color: #000000;\">The Future of Free Apps<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000000;\">As of <strong>2022<\/strong><span style=\"font-weight: 400;\">, <a href=\"https:\/\/www.statista.com\/statistics\/263797\/number-of-applications-for-mobile-phones\/\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a> 96.7% of apps on Google\u2019s Play Store were free, compared to 92.7% on Apple\u2019s App Store. Free apps dominate the app market and will continue to do so for a long time.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The <\/span>following table, summarized from <a href=\"https:\/\/www.businessofapps.com\/data\/app-revenues\/\" target=\"_blank\" rel=\"nofollow noopener\">Business of Apps<\/a><span style=\"font-weight: 400;\">, shows the growth that apps are witnessing in their revenues over the years:<\/span><\/span><\/p>\n\n<table>\n<tbody>\n<tr>\n<td><span style=\"color: #000000;\"><b>Year<\/b><\/span><\/td>\n<td><span style=\"color: #000000;\"><b>App Revenue<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400; color: #000000;\">2016<\/span><\/td>\n<td><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">$<\/span> <span style=\"font-weight: 400;\">43.5 billion<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400; color: #000000;\">2017<\/span><\/td>\n<td><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">$<\/span> <span style=\"font-weight: 400;\">58.1 billion<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400; color: #000000;\">2018<\/span><\/td>\n<td><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">$<\/span> <span style=\"font-weight: 400;\">71.3 billion<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400; color: #000000;\">2019<\/span><\/td>\n<td><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">$<\/span> <span style=\"font-weight: 400;\">89.0 billion<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400; color: #000000;\">2020<\/span><\/td>\n<td><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">$<\/span> <span style=\"font-weight: 400;\">111.0 billion<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400; color: #000000;\">2021<\/span><\/td>\n<td><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">$<\/span> <span style=\"font-weight: 400;\">133.0 billion<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400; color: #000000;\">As is clear as day from the above dataset, the growth in revenue for\u00a0mobile apps is going to be phenomenal at a <strong>CAGR of 26.39%<\/strong>. If the same trend continues, which we expect to be faster than in the past years, then by <strong>2025,<\/strong> the app revenues are going to<strong> cross $398 billion!<\/strong><\/span><\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"Factors_to_consider_before_you_build_an_app\"><\/span><span style=\"color: #000000;\">Factors to consider before you build an app<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400; color: #000000;\">You may have a great and awesome\u00a0<a href=\"https:\/\/www.arkasoftwares.com\/blog\/best-mobile-app-ideas\/\" target=\"_blank\" rel=\"noopener\">idea for free app development<\/a>, but that alone cannot make you money. You will need to consider many factors to make it user-friendly, popular among users, and then finally make money from it.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The idea must be unique or fill a vacuum that is left behind by existing popular apps in the same category. For example, when TikTok was banned in India in 2020, many short video apps came to fill the void.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Or, despite having too many wallets, PayTM is the clear market leader, as it was present in a critical mass way before any other <a href=\"https:\/\/www.arkasoftwares.com\/blog\/cost-to-develop-ewallet-app-like-paytm\/\" target=\"_blank\" rel=\"noopener\">micro-payment app<\/a> was. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">PayTM also offered person-to-person transfers before any other app could think of it, making it immensely popular.<\/span><\/p>\n\n<p><img data-dominant-color=\"4fcbf4\" data-has-transparency=\"false\" style=\"--dominant-color: #4fcbf4;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent size-full wp-image-13666 aligncenter\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/mobile-app-development.jpg\" alt=\"mobile app development\" width=\"860\" height=\"600\" \/><\/p>\n\n<p><strong><span style=\"color: #000000;\">There are some crucial factors that you must factor in before you launch your free app to make money:<\/span><\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Proof of concept for your idea is necessary before you invest in servers and other technological tools. If the concept is proven to be successful, then only then should you move ahead.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Market and audience research is absolutely necessary, as if you are going to target and grow your audience, you must know about them beforehand. It will also help you focus your marketing efforts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The app\u2019s design<strong>,<\/strong> its look &amp; feel, UI, and UX make or break any app\u2019s fortunes. Your app may be a nest in functionality, but if the users do not like it, then everything is in vain.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Security and privacy are the issues that can bring down even the most popular of apps\u2014case in point the sudden uninstalls of WhatsApp after their supposed privacy policy change earlier in January 2021 and the resulting spike in installs of Signal and Telegram.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Functionality is the soul and the core of any app and you cannot compromise on them. Whatever you are offering must be the best in its class.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The supporting infrastructure for the app\u2014server, network bandwidth, design, database\u2014all affects the security, efficiency &amp; scalability of the app.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\"><a href=\"https:\/\/www.arkasoftwares.com\/solutions\/ewallet-app-development\" target=\"_blank\" rel=\"noopener\">Online payment gateway<\/a> and other third-party tools may be integrated with the app so that your users can make purchases, log in using their social media accounts, and use other services without leaving your app.<\/span><\/li>\n<\/ul>\n\n<h2><span class=\"ez-toc-section\" id=\"App_Monetization_Options\"><\/span><span style=\"color: #000000;\">App Monetization Options<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Following are the most popular app monetization methods, in order of total revenue generation, <\/span><a style=\"color: #000000;\" href=\"https:\/\/www.statista.com\/statistics\/297024\/most-popular-mobile-app-monetization-models\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">according to a survey and research by Statista<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Advertisements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">In-app purchases<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Subscriptions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Merchandising<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Sponsorships<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Referral marketing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Monetizing Data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Freemium upselling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Physical purchases<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Convenience charges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Crowdfunding<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400; color: #000000;\">Let us discuss in detail the features, suitability, pros, and cons of each of these methods to monetize your free apps, one by one.<\/span><\/p>\n\n<p><a href=\"https:\/\/www.arkasoftwares.com\/contact-us?utm_source=blogs&amp;utm_medium=banner&amp;utm_campaign=Blog_Enquiry\" target=\"_blank\" rel=\"noopener\"><img data-dominant-color=\"616468\" data-has-transparency=\"false\" style=\"--dominant-color: #616468;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13510 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/06\/mobile-app-development-1.jpg\" alt=\"mobile app development\" width=\"1000\" height=\"140\" \/><\/a><\/p>\n\n<h3>1. Advertisements<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">In-app advertising is the most common and most recalled manner in which one could make money from free apps. It is also the easiest method to build into the design of your apps, as it is also the oldest method on the Internet to monetize digital properties.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Because of the humongous number of apps and advertisers, who wish to market their wares on them, advertising is now managed by specialized third-party ad networks. According to a <\/span><span style=\"font-weight: 400;\">Statista survey among digital marketers<\/span><span style=\"font-weight: 400;\">, the respondents believed that on average, 29% of apps generate revenues from advertisements, which is set to increase to 35% in two years\u2019 time and up to 425 in five years\u2019 time.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">A report on <\/span><span style=\"font-weight: 400;\">Smart insights quotes According to Statista&#8217;s report<\/span><span style=\"font-weight: 400;\">, mobile ad spending will reach an equal level with desktop ad spending for the first time in 2020 at 50% and by 2021 they will surpass it by one percent. This growth in mobile ad revenue is set to continue until something drastic happens.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Another <\/span><a style=\"color: #000000;\" href=\"https:\/\/www.statista.com\/statistics\/303817\/mobile-internet-advertising-revenue-worldwide\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Statista report indicates<\/span><\/a><span style=\"font-weight: 400;\"> that more than <strong>USD 186 million<\/strong> was spent on mobile ads in 2020. As mobile ads are all geared to drive the digital market, you can advertise for affiliate services &amp; products within your app and earn not only advertising dollars but also affiliate commissions.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400; color: #000000;\">Networks like Flurry, the all-powerful Google\u2019s AdMob, Facebook Ads, and AdColony are the top picks. The ads can be placed within your app in many forms, like banners, in-app native ads, video ads, <a href=\"https:\/\/yieldmonk.com\/blog\/what-are-interstitial-ads\/\" target=\"_blank\" rel=\"noopener\">interstitial ad<\/a>, animations, and rich media ads.<\/span><\/p>\n\n<p><img data-dominant-color=\"73bade\" data-has-transparency=\"false\" style=\"--dominant-color: #73bade;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent wp-image-13659 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/app-sponsorships.jpg\" alt=\"app Advertisements\" width=\"860\" height=\"420\" \/><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\">As an app owner, you must <a href=\"https:\/\/www.arkasoftwares.com\/blog\/10-tips-to-select-the-best-3rd-party-api-for-your-mobile-application-development\/\" target=\"_blank\" rel=\"noopener\">integrate the third-party API<\/a>\u00a0of the ad-server you have partnered with. You can define various levels, moments, and events when an ad will be displayed. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">You can control its placement, type, total duration, minimum duration, genre, category, and other such parameters to manage what your users see.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The ads can be used to generate direct revenues, based on the impressions they make, and you can partner with them as an affiliate to earn commissions when users click on them and make purchases on the sponsor\u2019s app or website.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\"> If an ad is clicked, you get paid; if the user installs the app of the advertiser, you get paid; simply put, the monetization opportunities are infinite.<\/span><\/p>\n<h4><span style=\"color: #000000;\">Interstitial ads: <\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">A full-screen pop-up covers the entire screen, and the ad is displayed for a limited duration. These ads can appear at specific intervals or when an event is triggered.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">Banner ads<span style=\"font-weight: 400;\">:<\/span><\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\"> Banners are like posters that are displayed in assorted sizes at different locations on the screen. These are often smaller in size than the full-screen ads and less obstructive too, letting the user use the app while the ad is shown.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">In-app video ads<span style=\"font-weight: 400;\">:<\/span><\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\"> Free video sharing sites like YouTube and MX Player use in-app videos, as well as many games. In games, the users can \u2018earn\u2019 some reward points by watching these ads. Users get the option to skip the commercial after it has played for a minimum duration.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">Native ads<span style=\"font-weight: 400;\">: <\/span><\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Native ads are integrated as internal elements in the app and showcase the benefits of using the product or service being marketed. <\/span><\/span><\/p>\n<p>Go a step further and <a href=\"https:\/\/www.creatopy.com\/features\/creative-optimization\/\" target=\"_blank\" rel=\"noopener\">optimize your creatives <\/a>to reach even more of your target audience. With the exact results apps provide, you&#8217;ve got an opportunity for improvement (and more profits) at every click and turn.<\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">As the advertising becomes part of the app&#8217;s&#8217;storyline,,\u2019 it cannot be skipped or closed and therefore is becoming more popular. <\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">However, integrating them into the app can be challenging, as building a story around an unrelated product or service is not an easy task.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">Pros of Mobile Ads<\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Offers an added revenue stream if your app also has in-app purchases or other models integrated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Ads can reach a larger target audience as usage statistics with apps are very exact.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">\u00a0User interactions are measurable with precision.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">In-app videos can generate a greater level of traffic to the website or app of the marketed item, compared to social media marketing.<\/span><\/li>\n<\/ul>\n<h4>Cons of Mobile Ads<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The apps must have a large user base or have the real potential to reach there in a very short time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">It requires regular and frequent use of apps by the users for ads to be repeated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Many users see irrelevant ads as marketers exploit the medium.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">As users get wary of too many ads, they simply ignore them or subscribe to the ad-free version.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The ads create a hindrance to in-app navigation and use.<\/span><\/li>\n<\/ul>\n\n<h5 style=\"text-align: center;\"><span style=\"color: #000000;\">Related: <a href=\"https:\/\/www.arkasoftwares.com\/blog\/mobile-app-development-cost\/\" target=\"_blank\" rel=\"noopener\">How Much Does Mobile App Development Cost?<\/a><\/span><\/h5>\n\n<h3>2. In-App Purchases<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">As the name implies, when a user makes any purchases from within your app, for non-e-commerce apps, the app developer gets either complete revenue or at least a commission on the proceeds. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Such purchases are simple and typically done to access special features, benefits, or contents within the apps. These may include data packs, powerups, more lives, cheat codes, special weapons, avatars, stickers, and access to restricted content.<\/span><\/p>\n\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\"><img data-dominant-color=\"1ec2f7\" data-has-transparency=\"false\" style=\"--dominant-color: #1ec2f7;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13668 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/app-developer.jpg\" alt=\"mobile app developer\" width=\"860\" height=\"600\" \/><\/span><\/span><\/p>\n\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Most gaming apps, video apps, research providers, and news portals have started using this model as regular subscriptions are considered costly or a waste of money by the users.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"> <span style=\"font-weight: 400;\">According to Forbes<\/span><span style=\"font-weight: 400;\">, this method is the highest revenue generator for original content developers and publishers, including games and gamers.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\"> Although the gaming business takes away the lion\u2019s share, other original content publishers also use this model very effectively, like publishers of scientific journals.<\/span><\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The best-suited apps to deploy this method and make money are those that offer limited access to a set of features, levels, tools, and content to users for free and then sell additional wares via in-app purchases.<\/span><\/p>\n<h4>Pros of IAP<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The chances of almost infinite revenues are remarkably high if the app becomes popular.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Best suited for original publishers such as game developers, research publishers, and the like.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">You can provide advanced services through the app.<\/span><\/li>\n<\/ul>\n<h4>Cons of IAP<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The security of such apps is always a potential risk.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">If the IAP process is poorly implemented, then it can result in bad reviews.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">User expectations for added services are great compared to the free services, and if they are not met, then users will stop using the app and uninstall it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The app development and maintenance costs will be much higher.<\/span><\/li>\n<\/ul>\n\n<h3>3. Subscriptions<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">Subscriptions are the go-to model for original content publishers, especially for news and entertainment content. Popular\u00a0<a href=\"https:\/\/www.arkasoftwares.com\/blog\/cost-of-developing-a-video-streaming-mobile-app-like-netflix\/\" target=\"_blank\" rel=\"noopener\">video streaming apps like Netflix <\/a>and Amazon Prime, as well as Business Standard and The New York Times, all use paywalls to protect their content.<\/span><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\"><img data-dominant-color=\"28b0dc\" data-has-transparency=\"false\" style=\"--dominant-color: #28b0dc;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13658 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/app-subscriptions.jpg\" alt=\"app subscriptions\" width=\"860\" height=\"600\" \/><\/span><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\">If the user wishes to consume their content, they must subscribe to their services through apps. Subscriptions can be annual, quarterly, monthly, or even for any custom range of duration, depending on their usability.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Some app publishers supply limited free content for either a limited period or access to a number of articles, episodes, or hours.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The difference between the subscription model and in-app purchases is that users get access to all features during their subscription period instead of to limited elements, as in the case of the latter.<\/span><\/p>\n<h4>Pros of the Subscription Model<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The best-suited model for long-form content with regular consumption, like news portals or OTT services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">A loyal base of consumers of the content with more engagement and regular viewership.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">A steady and reliable cash flow for the period of subscription.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">App Store and Play store rankings improve as a result of longer user engagement.<\/span><\/li>\n<\/ul>\n<h4>Cons of the Subscription Model<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Continuous innovation and content generation are needed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Many users may find it prohibitive to transition from one-time fees to monthly or annual subscriptions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Usually, a free trial period and an easy cancellation policy are needed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">A startup may not command respect and trust to generate regular subscriptions.<\/span><\/li>\n<\/ul>\n\n<h3>4. Merchandising<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">If your app has unique features, such as avatars, characters, and quirky quotes, then you have an excellent opportunity to sell merchandise based on them. This merchandise can range from t-shirts to wrist bands, from mugs to pens, and from jewelry to caps.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">You will have to partner with quality manufacturers of such merchandise and must ensure your suppliers can deliver reliably to customers who have placed the order on the app.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\"> If the popularity of your merchandise is very high, you can also enter into distribution and sales agreements with retail chains and start selling them on <a href=\"https:\/\/www.arkasoftwares.com\/services\/ecommerce-development-company\" target=\"_blank\" rel=\"noopener\">eCommerce platforms<\/a>.<\/span><\/p>\n<h4>Pros of Merchandising<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Your brand, characters, and quotes stay with people longer, creating an emotional bond.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">People can use your merchandise as gifts, thereby increasing the reach of your brand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">You can gradually enter different segments and enter into royalty agreements for exclusive merchandising rights.<\/span><\/li>\n<\/ul>\n<h4>Cons of Merchandising<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">App integration with backend ERP for inventory and distribution management may be tricky.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Poor shopping experience may result in disenchantment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Security and privacy concerns are the big issues with users.<\/span><\/li>\n<\/ul>\n\n<h3>5. Sponsorships<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">It is one of the less used models of app monetization but can give you impressive results if you find the right set of patrons. In the case of a sponsored app, the developer earns by publishing the app and getting sponsors to promote their offerings exclusively on your app.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">For example, you publish an app in the food genre, and then a restaurant chain, a fast-food chain, or a frozen food manufacturer may sponsor various elements in your app. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Customers may receive sponsored notifications about their latest offers, special discounts on booking via the app, and even discount codes on referrals or reviews.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Another example is Home depot sponsoring the Weather Channel App by putting an animated background where their appropriate ad is played according to the climate and season.<\/span><\/p>\n<h4>Pros of Sponsorship<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The principles and values of the app publishers and the sponsors are aligned, resulting in a long and durable relationship.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The app users and the consumers of the sponsoring brand may both benefit from the partnership.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The sponsor may be responsible for generating much of the content to be published.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The sponsorship commitment is fixed with a steady flow of income and an upfront fee.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Minimal disruption to navigation and user experience.<\/span><\/li>\n<\/ul>\n<h4>Cons of Sponsorship<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Finding a suitable sponsor and integrating their message into the app is a challenging job.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Sometimes more revenue through multiple sponsorships may be barred by the original agreement, and you may lose the opportunity to make It big.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Even if the messaging and communication of the sponsor change and do not resonate with your app, you will be forced to showcase them.<\/span><\/li>\n<\/ul>\n\n<h3>6. Referral Marketing<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">When you promote third-party products and services and users use a unique code linked to you to buy them, you will get a commission on such purchases, app downloads, and app usage. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">This is called referral or influencer marketing, which requires your app to have sufficient influence over its users to nudge them in the right direction.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The most common form of referral marketing apps is the one in which you compare similar products or services and then go on to buy them from within the app. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">For example, PolicyBaazar is a leading portal for buying insurance policies where a user can compare different policies from all insurers.<\/span><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\"><img data-dominant-color=\"48bcdf\" data-has-transparency=\"false\" style=\"--dominant-color: #48bcdf;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent size-full wp-image-13660 aligncenter\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/Referral-Marketing-app.jpg\" alt=\"Referral Marketing app\" width=\"860\" height=\"600\" \/><\/span><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\">Once the user enters her details, she is presented with the most appropriate policies to choose from, and when she buys a policy online, the PolicyBaazar app earns a referral fee. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">It can be considered similar to the direct sales commission, where each sale is tied to one of the multiple marketing channels.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Because the app works on providing choices, they can also make some listings to show before all by taking in sponsorships from the providers of those listings.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Different models of referral marketing are used by publishers, including:<\/span><\/p>\n<h4><span style=\"color: #000000;\">Cost per acquisition (CPA)<span style=\"font-weight: 400;\">:<\/span><\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The acquisition means that the users signs-up for the promoted services via the affiliates app.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">Cost per click (CPC):<\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\"> The affiliate will earn a small amount with each click by a genuine user on the advertisement by the promoter of the services. Upon clicking the ad, or the link, the users are taken to the app or landing page of the promoter.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">Cost per view (CPV)<span style=\"font-weight: 400;\">:<\/span><\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\"> In this model, the number of impressions of the ad by the promoter will earn you money. These impressions can be of static images or full-screen animations and videos.<\/span><\/span><\/p>\n<h4><span style=\"color: #000000;\">Cost per install (CPI)<span style=\"font-weight: 400;\">: <\/span><\/span><\/h4>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">as the name implies, if the users download the app and install it on their mobile phones, your app will earn. It is similar to the CPA model but with a more tangible acquisition and more tangible monetary rewards for your app.<\/span><\/span><\/p>\n<h4>Pros of Referral Marketing<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">A suitable way to market and promote a popular product through your app.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">One of the most networked models with great monetization opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Users that make use of the referrals are your most loyal users.<\/span><\/li>\n<\/ul>\n<h4>Cons of Referral Marketing<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">It takes time to build trust so that people will actually need what you recommend.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Referral campaign tracking is tedious and may require additional costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Usually, an app cannot run multiple referral programs from competing sponsors.<\/span><\/li>\n<\/ul>\n\n<p><a href=\"https:\/\/www.arkasoftwares.com\/contact-us?utm_source=blogs&amp;utm_medium=banner&amp;utm_campaign=Blog_Enquiry\" target=\"_blank\" rel=\"noopener\"><img data-dominant-color=\"29bbe5\" data-has-transparency=\"false\" style=\"--dominant-color: #29bbe5;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13679 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/app-development-cost.jpg\" alt=\"Mobile App Development Cost\" width=\"860\" height=\"200\" \/><\/a><\/p>\n\n<h3>7. Monetizing App Data<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">Every app collects loads of data about its users, including their usage statistics, their phones, networks, movements, and even transaction history. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">If you can find a secure way to hide sensitive details such as email and phone contacts, names, and credit card details and sell the bulk data, you can have a great monetization tool.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">In fact, each app does sell the data directly or indirectly to others or to other branches of its own business. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">For example, Facebook or Google may not sell data to others directly but it will use the data to decide the rates of advertisements on their vast networks.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">In this case, the users are the product that the apps are selling to their marketers; categorizations, consumer preferences, usage statistics, etc. are also very valuable for market research and statistical companies.<\/span><\/p>\n\n<p><img data-dominant-color=\"2db7d7\" data-has-transparency=\"false\" style=\"--dominant-color: #2db7d7;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent size-full wp-image-13671 aligncenter\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/Monetizing-App-Data.jpg\" alt=\"Monetizing App Data\" width=\"860\" height=\"600\" \/><\/p>\n\n<h4>Pros of Data Monetizing<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Exact consumer preferences can help you build greater market reach by offering the best services before anyone else could.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The data could be sold to many bidders many times over, both separately and by bundling with other relevant data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">You can build your own marketplace to start a new revenue channel.<\/span><\/li>\n<\/ul>\n<h4>Cons of Data Monetizing<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Privacy and security concerns are paramount.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Accountability towards users is compromised due to a conflict of interests.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The users may start losing trust in the app, like WhatsApp, if your privacy policy undergoes drastic changes.<\/span><\/li>\n<\/ul>\n\n<h3>8. Freemium Upselling<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">Freemium is coined by joining Free and Premium and means exactly that: some features of the app are free for all to use an unlimited number of times, but to access other advanced features, you must pay up. This payment can be one-time, like with an IAP or recurring, like with subscriptions.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">For example, with Spotify, you can use most of its features for free, and this way they can make you fall in love with them. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">But to gain ad-free access to its greatest audiobooks, exclusive labels, and popular podcasts, you must subscribe to its premium services.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">This is an exceedingly popular strategy in the case of educational content, professional certifications, health check-ups, and news publishers.<\/span><\/p>\n<h4>Pros of Freemium Upselling<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Ads appear only till you are a free user, no more intrusive ads once you become a premium user.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Most compatible with advertising, IAP, subscription, and sponsorship models\u2014offering multiple revenue channels.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Results in wider reach with the free ad-sponsored version of the app and a loyal base of premium users\u2014the best of both worlds.<\/span><\/li>\n<\/ul>\n<h4>Cons of Freemium Upselling<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Revenue fluctuations are remarkably high, as in some months you may have a ridiculously small subscription or in-app sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Continuous pressure to generate original content for users to want to come back to your app.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\"><span style=\"font-weight: 400; color: #000000;\">As free users have no tether to your app, they can easily uninstall it and move on.<\/span><\/span><\/li>\n<\/ul>\n\n<h3>9. Physical Purchases<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">Online and offline retail stores launch their free apps as a gateway for their consumers to browse and shop the products they sell. This is also applicable to service providers such as telecom or financial services.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">The customer always has the choice to visit the store online on their website or a physical store but may choose the app for more convenience as well as for exclusive offers available on it.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\"> An app also offers the convenience of making payments via conventional modes as well as their mobile wallets.<\/span><\/p>\n\n<p><img data-dominant-color=\"1da8d7\" data-has-transparency=\"false\" style=\"--dominant-color: #1da8d7;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent size-full wp-image-13661 aligncenter\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/Physical-Purchases.jpg\" alt=\"Physical Purchases\" width=\"860\" height=\"600\" \/><\/p>\n\n<h4>Pros of Physical Purchases<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">A flexible model is adaptable for every business vertical.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">It can help promoters and marketers offer their wares in one more channel and tap that consumer segment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">It is easier for online eCommerce players to design and launch an app and promote it among their existing customer base.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Easily adaptable to affiliate and IAP models.<\/span><\/li>\n<\/ul>\n<h4>Cons of Physical Purchases<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Apps with physical purchases need to follow stricter policies on app stores.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">They are governed by the local jurisdiction in the case of local deliveries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The model has to face the same challenges as setting up an eCommerce portal.<\/span><\/li>\n<\/ul>\n\n<h3>10. Convenience Charges<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">If you are offering an important and irreplaceable intermediary service, then you can charge a convenience fee or transaction fee from your customers.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\"> For example, <a href=\"https:\/\/www.arkasoftwares.com\/solutions\/ewallet-app-development\" target=\"_blank\" rel=\"noopener\">payment gateways<\/a> make money on each transaction, PayPal and Western Union make money for each remittance, and utility providers charge for providing you added bandwidth.<\/span><\/p>\n<h4>Pros of Convenience Charges<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The income is generated indirectly and in disguise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">As entry to such services is controlled and regulated, once you enter, the competition is not infinite, like in other models.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Promotes cashless transactions and proper recording of each transaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The credibility of users is enhanced.<\/span><\/li>\n<\/ul>\n<h4>Cons of Convenience Charges<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Many merchants (receivers of payments) may not pay the convenience charges, and the users may have to bear that burden too.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">As these services require regulatory approvals, the entry of new players is very challenging.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Incompatible with all other models.<\/span><\/li>\n<\/ul>\n\n<h3>11. Crowdfunding<\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">As the name suggests, the publisher of the app appeals to a large crowd of people to support their app and make monetary contributions. .<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">Against the donations made by interested patrons, the app publisher may give them exclusive rights, premium access, or beta access to new features of the app.<\/span><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\"><img data-dominant-color=\"1cc6f2\" data-has-transparency=\"false\" style=\"--dominant-color: #1cc6f2;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent size-full wp-image-13673 aligncenter\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/Crowdfunding.jpg\" alt=\"Crowdfunding\" width=\"860\" height=\"600\" \/><\/span><\/p>\n\n<p><span style=\"font-weight: 400; color: #000000;\">Startups and students who are passionate about their apps, ideas, and causes make use of the model and register themselves on various platforms like Patreon, Kickstarter, Fundable, GoFundMe, Crowd Supply, and Chuffed to look for donors. They may use their social media links to promote the app.<\/span><\/p>\n<h4>Pros of Crowdfunding<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Access to free money from multiple donors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">There are no investors; therefore, there is no liquidation of stakes or control.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Early and pre-funding of your projects if the earlier apps were a success.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">It is easier to attract angel investors and VC funding.<\/span><\/li>\n<\/ul>\n<h4>Cons of Crowdfunding<\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">More transparency is needed, as funding is a function of trust and confidence in you.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Fundraising is expensive, as crowdfunding platforms may charge heavy fees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The funds may not be available on time or are in inadequate quantity to properly develop and launch the project.<\/span><\/li>\n<\/ul>\n\n<h2><span class=\"ez-toc-section\" id=\"Tips_to_choose_the_most_suitable_App_monetization_model\"><\/span><span style=\"color: #000000;\">Tips to choose the most suitable App monetization model<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400; color: #000000;\">By now, you must have already had a fair idea that which monetization model is most suitable for you. Still, if you are confused that which model is best suited for you, or if you must go for a hybrid model<strong>,<\/strong> then follow these simple tips to clear any remaining doubts.<\/span><\/p>\n\n<p><img data-dominant-color=\"32bfea\" data-has-transparency=\"false\" style=\"--dominant-color: #32bfea;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13675 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/07\/most-suitable-App-monetization.jpg\" alt=\"choose the most suitable App\" width=\"860\" height=\"600\" \/><\/p>\n\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Each model is suitable for some apps and not for others. Do research to see if other apps in your app\u2019s category are using the same model(s) to monetize.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Do not oversell by integrating too many monetization methods in the beginning. Too many third-party APIs will not only affect navigation and security, but users may also get irritated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Offer in-app purchases only if they really add value to your users.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Too many ads or too few features without IAP will again irritate your users.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Keep the app as your central focal point\u2014not the monetization part. If the app is a hit among users, money will follow automatically.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Always analyze your competition and make long-term strategies to stay afloat. Sometimes, to win big requires only staying above the water level in tough times. Amazon became what it is today as it did not succumb to the Dot-com bubble of 1998\u20132000 and stayed focused on its core operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Market and user research are equally important. If your users are willing to pay for your content, then only IAP, subscription, merchandising, or freemium models will work. If the user is not capable of paying up, then referrals, advertisements, and sponsorship models are suitable.<\/span><\/li>\n<\/ul>\n\n<p><a href=\"https:\/\/www.arkasoftwares.com\/contact-us?utm_source=blogs&amp;utm_medium=banner&amp;utm_campaign=Blog_Enquiry\" target=\"_blank\" rel=\"noopener\"><img data-dominant-color=\"495178\" data-has-transparency=\"false\" style=\"--dominant-color: #495178;\" decoding=\"async\" loading=\"lazy\" class=\"not-transparent aligncenter wp-image-13506 size-full\" src=\"https:\/\/live-arkasoftwares.s3.us-east-1.amazonaws.com\/uploads\/2021\/06\/mobile-app-development.jpg\" alt=\"Hire Mobile app developers\" width=\"1000\" height=\"140\" \/><\/a><\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"Bottom_Line\"><\/span><span style=\"color: #000000;\">Bottom Line<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400; color: #000000;\">As a mobile app publisher, you must understand that, in the end, any app that makes money adds some value to the lives of its users\u2014entertainment, education, socializing, convenience, or some other such value proposition. <\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">If you do not bring your unique value proposition, then no matter what you do, you cannot make money from it.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">If you realize soon that your app can only make money when people use it, then your focus will not be on the money it makes, but on the benefits, it has to offer to its users.<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\"> Your users are always the kings and queens and they may vote by foot by uninstalling your app the moment they get a better value proposition from your competitor.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">If you have any queries, doubts, or questions about apps, their development, or monetization models, <a href=\"https:\/\/www.arkasoftwares.com\/contact-us\" target=\"_blank\" rel=\"noopener\">feel free to contact<\/a> the experts at <a href=\"https:\/\/www.arkasoftwares.com\" target=\"_blank\" rel=\"noopener\">Arka Softwares<\/a> by filling out this query form.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are paid apps\u2014one pays to download and use them\u2014for example, 1Weather, Bouncer, Scanner Pro, or MediaMonkey. And then there are free apps, like WhatsApp, Facebook, Twitter, Instagram, Ludo King,&nbsp;[\u2026]<\/p>\n","protected":false},"author":1,"featured_media":13640,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[162],"tags":[1332],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/posts\/13571"}],"collection":[{"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/comments?post=13571"}],"version-history":[{"count":18,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/posts\/13571\/revisions"}],"predecessor-version":[{"id":44778,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/posts\/13571\/revisions\/44778"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/media\/13640"}],"wp:attachment":[{"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/media?parent=13571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/categories?post=13571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.arkasoftwares.com\/blog\/wp-json\/wp\/v2\/tags?post=13571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}