How to Monetize Free Mobile Apps？

Do you question the claim that free apps can generate revenue?

While it's true that apps with a paid business model often earn more directly from their users, there are numerous methods to monetize free apps as well.

In the app market, free apps often make more money than those that just charge a one-off purchase fee, thanks to various revenue models like ads, in-app purchases, and subscriptions.

According to FoxData-Market Segment-Top Apps, in the first half of 2024, the top 5 highest-grossing apps on both the App Store and Google Play were all free.

Top grossing apps on App Store in the 2024H1

Top grossing apps on Google Playin the 2024H1

Next, let's explore in detail the monetization strategies of free apps.

1. Freemium Business Model

The freemium model is one of the most popular ways to monetize free apps. It allows app developers to offer a basic version of the app for free while providing additional paid features. Users can enjoy several free options but are often tempted to try more advanced features, leading to higher sales. This model effectively attracts new users and encourages them to upgrade for a fuller experience.

2. In-App Advertising

Users have two choices regarding in-app ads:

• Accept the ads and ignore them.
• Pay for a premium package to remove the ads.
  
  

3. Subscription Business Model

The subscription model is similar to freemium but with a clear distinction from the start. Users know that the free plan has limited features, and they can purchase a subscription to access a broader set of features. Various tariff plans are usually available, allowing users to choose according to their needs.

💡 More monetization strategies you may intrested in: Leading Trends in Mobile Game Monetization for 2024

4. In-App Purchases (IAP)

In-app purchases offer another popular monetization method. Users can buy additional features or content to enhance their experience. Here are the four types of in-app purchases:

• Consumable: Items like gems, lives, or boosts that can be used up.
• Non-consumable: One-time purchases that don't expire, such as brushes in photo apps or cosmetic items in games.
• Auto-renewable Subscriptions: Recurring payments for ongoing access to premium features, which renew automatically until canceled.
• Non-renewing Subscriptions: Access to content or services for a limited time, requiring a new purchase to extend.

👏 Expert Tips: You can combine monetization approaches, such as using in-app purchases alongside freemium and subscription models.

💡 Read more IAP strategies: Comprehensive Guide to Monetizing Mobile Games with In-App Purchases

While numerous monetization strategies exist, the ones mentioned above are the most trusted and effective. Tailor your monetization model to fit your target audience.

Make informed choices based on your app concept to attract the right users!

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