How to Earn Money from Mobile Apps

Hello Tech Seekers, I hope you are doing well. Today I am going to show you how Mobiles app developers earn money from their apps. Even if you see free apps on app stores but still they make a lot of money. Well, If you are curious and want to know how they earn money from Mobile apps. You have come to the right place. There are different earning models from Mobile Apps.

1. In-app advertising

The application is free to download and use, but you can still make money by getting users to interact with the advertising that is shown there. The income model for in-app advertising is carefully examined and determined to be successful.

This model covers a variety of ad forms, including native ads, text ads, interstitial ads, banner ads, video commercials, and more. How much money are app ads making? Depending on the type of advertisement, the average revenue per impression might range from $0.10 to $10.

Pros of in-app advertising 

  • Generates target audience 
  • Faster results 
  • Great extension for the target audience 

Cons for in-app advertising 

  • More shares of competitors 
  • Low involvement of the audience

2. In-App purchases and freemium model

When considering how to monetize an app without adverts, freemium is the main option to take into account.

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The use of this application is unrestricted. But in order to purchase a wide range of virtual elements via the smartphone application, consumers would need to pay a little fee. This covers additional lives, ad blocking, in-app purchases for premium content, in-game currency, and more.

Pros of in-app purchase

  • Wider user bases since users get to try the app before purchasing 
  • If planned well, the app gives maximum profits and higher returns

Cons of in-app purchases

  • The app within the in-app purchases has to pay the amount the App Store charges as a fee (i.e. 30%).

3. Subscription (Software-as-a-Service) model

subscription model is a different approach that is suggested as a means of app monetization.
In this case, consumers are requested to pay a weekly, monthly, or yearly charge in exchange for a certain service rendered by the mobile app development firm. This kind of business and monetization strategy is frequently advised for cloud-based services and apps that rely on music and video content, including Spotify, Google Music, and Netflix.

4. Sponsorship

Another way to profit from a mobile app is through sponsorship. This technique works well when interacting with brands from the same market niche and is typically integrated with applications that already have regular users.
There are two deals to go with when talking in detail about how apps make money using this monetization method.

  • Divide profits from the mobile app equally.
  • Decide on a monthly sponsorship charge.
  • For instance, in order to succeed in the market, Weather Channel applications and similar companies rely on this monetization strategy.

Pros of the sponsorship model 

  • Builds awareness around your business app idea 
  • Consolidates your business as an expert
  • Exposes your app to the right audience

Cons of the sponsorship model to earn money from mobile apps

  • Creates controversies if not done right 
  • You need strong networking and marketing skills to gain sponsors

5. Affiliate links to earn money from mobile apps

This is another variation of sponsorship, however, in place of granting advertising rights solely to one organization, you negotiate with a few interested parties and place their reference links in your application. This is a decent method to increase your income from apps if you lack a wealthy player on the market who is ready to cover your costs.

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