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App Monetization: Most Successful App Revenue Models for Your Mobile App

Choosing the best revenue model for your mobile app can be overwhelming. There are many factors to consider, and not all revenue models are right for every app, so it’s important to choose carefully. We created this guide on five factors to consider when choosing the best revenue model for your mobile app.

What App Monetization Models Are There?

In-App Advertising Revenue Model

In-app advertising may not seem like an immediate choice, but it’s smart. In-app ads can be a great way to increase your app’s revenue. After all, users are highly engaged with their apps and spend around 90 minutes each day using them on average. More importantly, they tend to respond well to mobile ads—as long as they don’t ruin their experience by being intrusive or overly difficult to dismiss.


  • Making an app free attracts user
  • Collecting user data lets, you deliver highly personalized and engaging ads


  • Maybe annoying if overused
  • Can decrease the user experience when ads are improperly formatted and displayed.

In-App Purchases Revenue Model

You can charge your users on a transactional basis using these IAPs. For example, let’s say you are building an app that you can use to access business services like hotel bookings, restaurant reservations, and more. When booking a reservation, a user would have to pay a fee depending on the desired service.


  • Offering certain features for free max it easier to build a large user base
  • It can be implemented in any category


  • App Store charge a 30% commission
  • The main effect user return if the experience is too poor and limited

Paid Apps Revenue Model

You can charge customers upfront or after usage or provide a time-limited free trial and encourage upgrades. It can be a successful model if you have an app that will be used by power users regularly. However, since most people do not upgrade apps they use occasionally or rarely, you’ll likely have fewer overall downloads if your goal is to acquire new users. You may also need to spend more money on acquiring new users than you would if you had gone with one of our other models.


  • Revenue is predictable and earned in advance
  • Greater likelihood of highly engaged users


  • App Store text high percentage of the revenue
  • It might be not easy to find an audience large enough to cover all other business expenses.


Paying a monthly or annual fee is often a great way to ensure users continue accessing your app. The more engaged they are and therefore likely to continue using it, the more likely they will pay. Subscriptions can be tricky if you want users to stay engaged continually.

A highly lucrative application that does not rely on this method is Tinder. Tinder offers two paid levels and the possibility of boosting or promoting your profile.


  • Consistent cash flow
  • It’s more cost-effective to return users than attract new ones


  • It isn’t suitable for all apps and depends on your business model
  • It is difficult to determine which features are premium and which free


Sponsorships are among the least well-known apps business models. While banners on the internet or videos can increase brand awareness, they do not necessarily offer the user anything. Many apps charge a one-time fee, but there’s also an option to partner with sponsors who want to reach your users. These companies provide specific value to your users, and in return, they may request access to certain personal information (such as email addresses). Make sure that you fully inform your users about what kind of data will be shared, and be transparent with them if any data is sold.


  • Applicable to all app category
  • Relevant to the users


  • A relatively new model that hasn’t been interested sufficiently
  • Require a lot large user base to be profitable

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