Guide to the App Monetization

When it comes to monetizing mobile apps, there are several models to choose from. Each has its own advantages and disadvantages, and the best model for your app will depend on your audience, app features, and overall business goals. In this post, we will discuss some of the most popular app monetization models and their pros and cons.

App Monetization Notion

What is app monetization? It’s the process of building systems to generate a steady income from a mobile app. Some apps are designed to increase the average cost of an order or the number of purchases a user makes.

The monetization strategy is important to think through even before the start of application development in order to fit it organically into the UX and give opportunities for further development. Freemium – the most recommended monetization model. Some app developers may choose to use a combination of monetization models to generate the most revenue for their app. Downloading and using the basic functionality of the application in the Freemium model is free.

If the user wants additional features, content, or subscriptions, then he will have to pay. You have to understand the needs of your app users and provide them with everything they are looking for, only then will they pay. Different methods of monetizing your apps include in-app advertising, in-app purchases, subscriptions, and one-time payments.

Steps to attract more users

The Best Monetization Strategies

Let’s see what monetization models you can apply to make your app profitable:

In-App Advertising

One of the most widespread monetization models for mobile apps is in-app advertising. This involves displaying ads within the app, either as banners or interstitials, and earning revenue from clicks or impressions. This model is often used by apps that have a large user base, as more users will result in more ad impressions and, therefore, more revenue. However, it’s essential to keep in mind that the user experience should not be compromised by the number of ads displayed; otherwise, the user may lose interest in the app and may stop using it.

In-App Purchases

Another popular monetization model is in-app purchases. It implies offering users the option to purchase additional features or content within the app, such as virtual currency, power-ups, or additional levels. Such a model may seem relevant for platforms that have a dedicated audience, as users may be willing to pay for additional features that enhance the app experience. In this case, it’s vital to ensure that the app is still fully functional without additional purchases. If it’s not,  the app may be considered incomplete or not worth downloading.


A third monetization model is subscriptions. This model can be effective for apps that provide ongoing services, such as access to a library of content or access to premium features. Subscriptions can be offered on a monthly or annual basis and can be a good way to generate recurring revenue from users who find value in the app. When opting for such a model, you should ensure that the app provides enough value to justify the subscription cost.

Affiliate Marketing

Among the other monetization models, we can mention affiliate marketing. It refers to partnering with other companies or brands to promote their products or services within the app. This can be done through sponsored content, banners, or links that take the user to the affiliate’s website. When a user makes a purchase or signs up for a service, the app developer earns a commission. This model can be a great way to monetize an app without directly selling products or services to the customer.

Data Collection and Selling

One more monetization model is collecting and selling data. Many apps collect data on their users, such as their location, browsing habits, and preferences. This data can be valuable to businesses and marketers and can be sold to them for targeted advertising or market research. Yet, it’s important to be transparent about data gathering in the app and to obtain user consent before collecting any sensitive information.

Freemium Model

Finally, another monetization model is the freemium model. This involves offering the app for free but with certain features or content locked behind a paywall. The user can then choose to pay for the additional features or content or continue to use the free version of the app. This model can be a great way to generate revenue from users who find value in the app and are willing to pay for additional features.

How to monetize


In conclusion, there are several app monetization models to choose from, each with its own advantages and disadvantages. The best model for your app will depend on your audience, app features, and overall business goals. It’s important to consider the user experience when implementing a monetization model, as users may lose interest in the app if it becomes too “ad heavy” or if they feel like they need to spend money to fully enjoy the app. Therefore, it’s important to find the right balance between monetization and user journey.

Additionally, it’s essential to be transparent in case you generate, collects, and process any sensitive client details. It’s important to have a clear privacy policy in place to ensure that users are aware of what data is being assembled and how it will be used. This will help to build trust with your users and increase the chances that they will continue to use the app and make in-app purchases.

One of the best ways to determine the best monetization model for your app is to experiment with different models and see which one works best for your audience and app. You can start by testing different ad placements and types and then move on to testing in-app purchases and subscriptions. You are welcome to try out affiliate marketing, data collection and selling, and the freemium model to see which one generates the most revenue for your app. By following these strategies, app developers can effectively monetize their apps and generate revenue.

By Yuliya Melnik

Yuliya Melnik is a technical writer at Cleveroad. It is a web and mobile app development company in Ukraine. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions.

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