According to a forecast from App Annie, the standard in mobile app analytics and app market data, the money spent on mobile apps is supposed to touch $139 billion by the year 2022. The analytics give the insight that mature markets from countries such as the US, Japan, South Korea, the UK, and China would bring 85% of the total app revenue. Emerging markets from India, Brazil, Mexico, and Indonesia will be the top scorers amongst app downloads stating a 20% annual increase. Impressive figures? Have you ever wondered about the ampleness of mobile app markets?


Before answering that let us analyze the reason behind people making mobile Apps. Some mobile apps are the materialization of fascinating, innovative ideas from thoughtful entrepreneurs. Other mobile apps are from companies that consider apps as their gateways to maintain a better connection with their customers. Whatever, mobile apps have been in high demand since their inception. 

To make money from a mobile app, you need to build an app in the first place. So how to make an app? Well, that's simple. You don't have to spend days, weeks, or months of coding to make your app. Zartek, the best mobile app development company can make your dream come true? You will not have to code for eternity! 

It's an undeniable fact that a lot of investment indeed goes into the making of an app. So it is quite natural for an app owner to want the spent money in return? Making money from paid apps is straightforward. Customers make the upfront payment to download and install an app. But how do free apps generate money? Isn't it quite interesting? When you look at the statistics, it is evident that free apps are on the rise. This article analyses the different ways through which free apps generate money in the ever-flourishing mobile app market.

1. Advertising is the key?

Advertising is the old method, but the most effective and easiest one to make money from your app. Show ads inside your app and get paid; this method is called In-App advertising. Ads can be of any type, a banner ad or a video ad. A video ad would reward you with more benefits as compared to the banner ad. When it comes to a video ad, you should analyze and understand whether your app users or target audience would show interest in watching ads in your app. Strategies will work fine only if you have happy and satisfied customers at the end.  

You can also make money by not showing ads in your app? Yes, you heard it right. You may ask your app users to upgrade their current app version to an ad-free version on payment. This method also earns you money from premium users.

2. Provide In-app Purchases

This mode of income generation is more favorable for a user. From a user's perspective, users can enjoy the basic features of an app free of cost unconditionally. But to unlock additional features, enjoy certain selected benefits, or earn some health points, an app user will have to pay. This method refers to In-app purchasing. It is currently one of the most widely followed revenue models.

Take the case of Harry Potter, a casual game with 50 million downloads. Or consider Clash of Clans, another game with over 500M plus downloads. They all thrive and strive in the industry by just following the in-app purchase model. The creators know how to lure their customers and make them spend more money inside the gaming app? 

3. Find a suitable Sponsor

Sponsorship is yet another effective method for monetizing your app. After the launch of your mobile app, if you can garner a substantial user base, then think of this model. Find a suitable sponsor that has or matches your target market. If the sponsor readily agrees with the proposal, the next step is to white-label your app to match the sponsor's brand or design. 

There are multiple advantages to this model. Branding becomes easy and yields more customers. Investment or prior skills required would be less. The revenue sharing part is done in two ways; either you may split the income or receive a fixed payment as a sponsorship fee. 

4. Follow the Subscription model

The Subscription model is yet another way to monetize your app. By following the subscription model, an app owner gets a monthly recurring revenue. This model helps an app business to develop a value-based connection with its customers.

In the subscription model, users are not making any single upfront payment to use it unconditionally. Instead, users pay a fee for the time frame they use the app. This model is beneficial for both parties. For an app owner, the subscription method is a continuous source of income. For a user, he can discontinue the subscription the moment he loses interest. So there is no wastage of money. 

The real challenge of an app owner in following the subscription model is to retain his customers. As long as the customers receive value from your app, customer retention will never be a bottleneck.

5. Attract with Merchandise

Merchandising proves the best solution for monetizing if your app is closely related to M-commerce. The ongoing trend coupled with analytical data proves that customers have already chosen apps over mobile websites. The benefits are multifold. It has got wider reach and accessibility. With merchandising apps, app owners or businesses can reach their customers at the right time. Merchandising opens up new marketing opportunities. There is the possibility of direct communication with the customers. With proven better customer experience, repeated and frequent customers are sure. Is there any need to emphasize that all these end up in income? 

6. Pursue Affiliate business model

The affiliate business model is quite simple which works on commissions. Your app acts as a pivot point in driving customers to other sellers through the affiliate links and ads placed inside the app. You would not get a reward from merchants or partners for just placing affiliate links or ads in your app. So the Affiliate model is a pay-for-performance model. 

Now that we have discussed various strategies for generating money from apps, it is time to decide who will create an app for you if you are seriously thinking about developing one. Confide in Zartek, one of the most trusted app development companies that use only the latest tools and technology for developing great apps. The dedicated and dutiful professional team at Zartek would deliver you the most subtle and competent apps at the best budget.

So hurry up and act today?