So, you have finally created the best mobile app ever. You spent time, money, and energy on it. Now, you are wondering, “How can I monetize my mobile app?”

That’s a good question that deserves the right answer.

According to statistics, some of the most popular apps today earn as much as $82,500 a day. Of course, if you look at the average, a common mobile app can earn nothing to about a few hundreds of dollars on a daily basis.

With this in mind, you might be wondering, how exactly can you make money with your mobile app? 

Today, you will find out. Read on to learn more!

Running ads

It’s no secret that the majority of the apps in app stores are freely available. In fact, statistics show that 96.7% of apps in Google Play and 93.9% of apps in the Apple App Store are free.

So, how do these apps make money when most of them are free? Well, the answer is simple — ads.

Running ads is the most common way to earn money using your app. It keeps your app free while you keep on earning.

There are different types of ads you can run. Here are some of them:

  • Interstitials

  • Native ads

  • Banner ads

  • Rich media

  • List or panel ads

  • Affiliate ads

  • Reward ads

Ads are easy to set up. It keeps pouring money even while you sleep. What’s great about ads is that they help you to earn money almost instantly.

How to run effective ads

You need to balance out the number of your ads and its appearance frequency. You should add enough ads to help you earn, but not too many that you chase away users.

Timing is also a key here. Don’t simply run ads whenever you want to. Instead, run ads when your users have accomplished or did something. You run ads at the beginning or end of activities so that you don’t disrupt your user.

Be sure to test your ads. What works for others might not work for you. Thus, get as much data as possible to create data-driven decisions.

Some examples of mobile apps that primarily earn from ads are social media platforms. Think of Facebook, Instagram, and Twitter. These apps are 100% free, but in exchange, you have to see a few ads.

In-app purchases

If you don’t like ads, you can use in-app purchases instead. It’s a great way to keep your app free, but at the same time, helps you earn money.

You can initially provide certain features of your app to be free. However, you can let your users get the advantage of other features once they pay for them.

For example, you can download a budgeting app. You can use the basic features, but if you want to fully use the app, you need to pay for additional features.

Another example would be gaming apps. These apps allow you to play the game, but at some point, if you want to make upgrades or unlock new stages faster, you can buy points or coins.

Sell products or offer services

If you have products or services to offer, you can definitely do that with an app. Think about online buy and sell platforms or marketplaces. Some great examples would include eBay, Amazon, Etsy, and Alibaba.

Of course, you don’t have to be a giant marketplace to use this business model. If you have a local store, you can use apps to get in touch with new and existing customers.

Aside from physical items, you can sell digital products such as eBooks, online courses, songs, videos, and so much more.

Offering services can also be a great way to earn through your app. An example would be the Thumbtack app. It’s an app that connects local professionals and their customers.

Subscription

A subscription is when you let your customers use your app for a period of time, usually a month, in exchange for payments. 

One great advantage of the subscription business model is that it gives you a regular stream of income. It also kind of split the cost. This will make your mobile app more affordable.

Some of the most popular apps that use subscriptions include Spotify, YouTube Music, Netflix, Tinder, and Deezer. Subscription isn’t just limited to entertainment, but it can also be used by educational apps.

Paid apps

If you don’t like the thought of giving away your precious app for free, then you can turn your app for a paid one. Right off the bat, you can offer your app free to download but immediately ask for payment in order to proceed.

Paid apps are ideal for apps that offer rare, unique, or hard-to-find services, information or features. For example, productivity and educational apps ask for payment upfront. 

Obviously, you want to have an app that gives value to the user. It should be an app that solves people’s problems or meets their needs. If not, then you will have a hard time finding paying customers since most people would rather use a free app.

Sponsorships or partnership

Read more in ShyftUp’s article.



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