How Do Free Apps Make Money?

How Do Free Apps Make Money?

The instances when you sell for money are gone! Karl Marx said: “The most effective form of the flow of commodities is the transformation of commodities into money and the change of the money back again into commodities. ” but, we’ve evolved for the reason that time Marx lived and now we can develop an app and get money giving them without cost. find out how free mobile apps make money and the way to monetize free apps using our studies.

when launching your application, it is critical that you earn on it. but, now you can get even more for free apps than for launching the paid apps. according to the statistics Portal Statista, the revenue from free apps in 2017 will reach $37 billion, while the revenue from paid app downloads is going to be $29 billion. It occurs because users prefer not to pay for the application but to get it for free. And a few brainy marketers figured out how to make money from free apps.

How to make money on free apps.

There are lots of options a way to earn cash from free apps using various monetization techniques. In our article, we will consider not only the most famous ones but also check what apps can be monetized this way and which can’t.

According to Statistica, in 2017 these were the most popular app monetization methods used by top app publishers.

most popular app monetization methods used by top app publishers

Advertising: advertising is probably the most common and simplest to implement, and it’s far achieved through a third-party advert network.The fact is, 98% of worldwide revenue comes from the free apps, according to Google Play.


7 out of 10 free apps providers used advertising as their revenue model in 2016.


using ads to monetize an app and make money is pretty easy. An app owner just needs to show commercials inside their mobile app and get paid from the third-party advert networks.


you can receives a commission every time an ad is displayed (per impression), per click on the ad, and when a user installs the advertised app.


There are specially four types of ads which are displayed by using the app providers for monetization.


Interstitial ads: This type of advertisements are full-screen pop-u.s.which might be displayed at specific time frames. users can close this advert by close button at the top left or right corner.

for example, a ad may be displayed while a person finishes editing a photo and saves it within the gallery.

This technique is used by Gaana, which is a super example of app monetization.

Banner ads: they are basically displayed in different sizes and on the top or bottom components of the app display screen. they are often small and less obstructive which allows users to freely use the app.
In-app video ads: these advertisements are displayed automatically and generally used as a reward video in alternate of some in-app reward. for example, by means of looking the ad video, the user can get the app currency which may be beneficial for either unlocking levels in the game or getting additional features.
Native ads: native ads are integrated to seem as a natural element inside the app. most of the times, it’s far manifested to promote a product or a mobile app.

This technique is getting more and more popular these days because the users are less irritated and intrusive with such advertisements.



In-app purchases : The technique works when there are items which users can buy inside the app. All money transactions are handled through the store where the app is placed and the owner gets the commission from every transaction.

here you can get as much money as you need. The feature in your app can cost one, five or even fifty bucks. however, you’ll get your cash only if the user believes that it’s well worth it.

This way you may offer your customers to pay to unblock the functionality or to buy a few digital items (weapons, coins). most of the games use this technique to maximise sales. as an example, in the game The Sims FreePlay you have to pay up to 15 quid for a piece of furniture in a virtual house. The app by itself is free.

however not only video games are monetized this way. There are plenty types of mobile applications that can use this scheme. The image, video and music editors, various calculators, apps with AI or VR and some other apps that have specific, exclusive features which user can’t get anywhere for free. And of course, messengers that offer you to purchase funny stickers.


According to Statista, apps with in-app purchases generate the highest revenue for their publishers. This monetization strategy is also expected to dominate in the years to come.


Furthermore, according to the report from Business of Apps, “The formats playable ad formats, rewarded videos & opt-in are seen as the most effective.”

Image result for Furthermore, according to the report from Business of Apps, “The formats playable ad formats, rewarded videos & opt-in are seen as the most effective.”

Affiliate Income: promoting someone’s applications or products in your app, in particular if these products are somehow connected with the topic of your app, can bring you serious profits.

The approach works well in news and social media apps, specifically if they’re for specific niches. in addition to in occasion applications and directories, in which you can discover only the shops or restaurants of affiliated companies.


Subscription: Is a nice model to make cash. free Android applications and IOS apps can earn if their content updates frequently. users pay a month-to-month fee to get the freshest vids, song, news or articles. A common exercise how free apps earn money is to provide a few free and some paid content, to hook the reader (viewer, listener).

This model doesn’t work with static content material apps or apps like video games, e-commerce and messengers.


Freemium: when a user sees that he has options to download a free and a premium app, usually, he’s taking a chance and installs the app. when there is only a premium account in the app, the consumer doesn’t know if it’s worth his money. Having an capacity to try and check the product, users will buy premium if they just like the functionality of the program.

This Monetization method is bets for heavy-useful applications which offer software as a service. They may be the apps with computational functionality or professional editors. the key condition here is to offer customers some distinctive highly-demanded features.


Advertisement: when you’re choosing how to make money from a free app with the assist of an advertisement, undergo in mind that they may be small or big, static or in the form of animation or a video. The factor right here is to choose the most suitable type according to your software. except, you may choose how you will be paid for the ads’ demonstration. you can get money whenever a user sees the advertisements, every time he clicks on it, every time he buys some thing in an advertised app or whenever he installs an advertised application.


Sell your API: How do free apps make money without ads? nicely, they probably don’t use the most well-known and common unfold way to get money. however, it’s now not the least effective way either. What is meant here, is that in case you (or your team) developed an superb, unique application solution, which gained popularity, you can sell the API to it, or the entire source code.

if your app copies an current one and doesn’t have any unique functionality, then the method is not for you.

After you’ve got chosen the great way to monetize your app, you must consider customers. I mean about the number of them. It’s crucial that the more users you attract, the more money you may get afterwards.


Get more users to get more money

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it is obvious that if no one knows about your app – nobody would download it. to maximize your revenue, you want to attract as many customers as possible. The more people know about a Apps, the greater they want to download it. advertising is one of the vital steps that you want to assume over long before the project launches. you can hire a professional team or do a lot of the work via yourself even at no cost, but you have to remember some easy steps:


Choose the audience : in case you’re developing an app for pet lovers don’t forget about the feature to put up animals’ snapshots in the app, the ability to find the nearest vet and a pet hotel. What can help you choose the best market is to launch MVP app. What does it give you? MVP is a reasonably-priced prototype that you provide to the public in order to accumulate feedbacks. studying this feedback you see what the age bracket and occupation is and other information about the most active users. in case you see that your largest fans are youngsters, you could either upload extra features (or change the style) to attract older people or, you could attention on children and replace it with a few really funny elements. engage with your users.


Interact with your customers: you need to battle for everyone. if you need to start an educational app for students, you can visit the local universities and speak to the teenagers or even teachers. All you need to do is assure them that your app is clearly useful and what’s greater, it’s free! if your app is somehow connected with the beauty enterprise – you need to go to SPAs. recommend to friends and colleagues installing your app and test it and then ask them to leave feedback or rate the app in a store. The more feedbacks you acquire, the better it will be. users are your judges and they will direct you the right way.


Make it social: The idea isn’t new but it’s a point that cannot be overemphasized. The greater social media your app is connected to, the more users can see it. Social integration ensures you the eye of millions of people around the world.


Turn it into a game: exceptionally, but gamification can bring you and your app lots of benefits. And the most important is Engagement. for example, you develop a health app. you could upload a feature to count steps and set challenges for friends like the app Google Fit. The method helps to drag customers in and encourages them to participate. the other plus is Motivation. You inspire customers not best to be active in the app but also to involve friends in the charming game.



With so many app monetization models to make money with apps, it is important to notice that every method has its own benefits and disadvantages. but, trying out these techniques and studying what competitors are doing is a good place to begin. Now, you would possibly have were given the answer to how much can you make from an app.


So when starting your mobile app development, you have to take the app structure and target audience into consideration before choosing the monetization strategy.