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A Full Guide On App Monetization Models And Strategies


Jul 2021
1496 Views 5 Minute Read
app monetization models and strategies
Mobile apps have proved to be super helpful for several businesses and individuals in multiple ways, and now life can’t be imagined without them. Imagine your smartphones with no apps at all! Then why buy a smartphone in the first place. However, that’s not the talk of today! We will be focusing your energy on making you aware of how mobile app owners make money from these apps. You must have thought about how they earn money by offering mobile app development services once in a while.

What Is Mobile App Monetization?

It is the process of engaging the app’s user base and influencing them to purchase your app’s services. It is a particular framework that defines how a mobile app generates revenues and ROI.
The question is how to make money, which is why we have gathered here today on this blog. People come up with unique app ideas and think of various angles while creating an app; however, they get confused about the money-making part.
If you are building an app for the first time or making alterations to the current one, several ways are available to make money from your fantastic mobile app.

App Monetization Strategies Fall Under 2 Categories

app monetization strategies fall under 2 categories

Direct Monetization

Direct monetization is the money earned directly from the app. For example, when an app user installs the app from Play Store or App Store and makes in-app purchases, the money comes straight from your app. Direct monetization is the revenue you earn by implementing an app monetization model.

Indirect Monetization

Among mobile app products, indirect monetization is quite common. The best instances of indirect monetization are digital apps that display or pop up within the free apps. Here, the app is secondary, and it will make money irrespective of the app usage. This is a smart way to make money from a mobile app and make the app look more attractive at the same time for potential users as it enhances the user experience.

Great Ways To Generate Revenue From Your Mobile App

great ways to generate revenue

Below is the list of the most effective ways that you can produce money from your mobile app:

Sponsorship Model

Sponsorships are effective as they can uplift your profit-earning significantly. The initial step of this model is to find an appropriate partner with a similar user base that can add a great user experience and value to your app.
Collaborations can add incredible advantages to your business, mainly when you create a reasonable experience by thinking about the improvements and logistics jointly to deliver mobile analytics.
Here, brands with an identical user base pay you for a unique spot in your mobile app and market content related to it. This boosts engagement & retention, helping you increase revenues by taking your portion from the redeemed rewards that these brands offer your users via in-app activities.

In-app Purchases

This is one of the most commonly used monetization strategies that involve free and paid apps. This model allows users to purchase multiple digital products. For example, players playing any gaming app could invest money to unlock levels, coins, premium features, and much more.
The base of this in-app purchases model is that the free version must be super effective and working. And in addition, in-app purchases should be used only for augmenting and improving user experience.


This is a great opportunity for mobile app monetization as it enhances the communication between users and advertisers through apps. Below are usually 3 types of ads marketers create:
Video Ads: This one includes online advertisements that have video within them. Most video ads are bought, sold, and shown by using several engaging elements and targeting methods.
Notification Ads: They are shown as pop-ups and can make the users aware of such apps. They can be sort of intrusive but are super effective.
Banner Ads: They are a form of online ads normally found at the top or bottom of the screen. They can undoubtedly annoy the users as they can be more interrupting than others.
Interstitial Ads: They are called full-screen ads and are shown in the app’s flow moving through the menu.

SMS & Newsletters

This monetization model is a great way to connect with your audiences by consistently sending alerts on discounts, contests, promotions, reminders, and much more. SMS boosts user engagement and reinforces your brand by compelling users to check out your app.

E-Commerce App Model

This is the simplest way to monetize your app as it enables you to sell physical products online via your app. Developing an app that focuses on the e-Commerce models and techniques that combine with content-based brands generates better profit margins.
Everyone is well aware of how online stores are influencing users these days and delivering exceptional user experiences. Therefore, if you offer users an improved, quicker, and easier buying experience than physical stores, they will repeatedly visit your store.

Subscription-based Model

This app model renders paid content and enables users to use all the improved features added to the app. Under this model, app users are compelled to pay a recurring fee for your app’s content.


This is a blend of the word free and premium. Freemium apps offer app users privileged access to extra features in the app. This model implements in-app purchases that produce regular revenues for the business, and they cost nothing.


They are a direct way of earning revenue for your business with each install or subscription. This model is about creating your app’s different version with an improved user experience.

Decide Your Mobile App Monetization Model Today!

The whole app industry is flourishing, and there are no signs of slowing down even in the future. With over 3.5 billion smartphones worldwide, mobile apps will only expand with time. Therefore, if you plan to develop an app and are considering your app monetization model feel free to connect with you, and we will guide you to choose the aptest model for your mobile app.
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Harnil Oza is the CEO & Founder of Hyperlink InfoSystem. With a passion for technology and an immaculate drive for entrepreneurship, Harnil has propelled Hyperlink InfoSystem to become a global pioneer in the world of innovative IT solutions. His exceptional leadership has inspired a multiverse of tech enthusiasts and also enabled thriving business expansion. His vision has helped the company achieve widespread respect for its remarkable track record of delivering beautifully constructed mobile apps, websites, and other products using every emerging technology. Outside his duties at Hyperlink InfoSystem, Harnil has earned a reputation for his conceptual leadership and initiatives in the tech industry. He is driven to impart expertise and insights to the forthcoming cohort of tech innovators. Harnil continues to champion growth, quality, and client satisfaction by fostering innovation and collaboration.

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