How to Make Money from Apps in 2024?

Introduction

These days, mobile apps are a great way to connect and engage with your audience. But, there's always the question on every developer's mind: 'How can I make money from my app?' Whether you're a seasoned pro or just starting, the key is to choose the right monetization models and strategies. In our guide, we'll explore the best ways to monetize your app, giving you insights on how to make your app a profitable venture. We'll cover everything from in-app advertising and in-app purchases to subscription models and innovative ideas. So let's dive into the world of app monetization and unlock the potential for financial success in the app development world.

How to Make Money with Apps?

There are various ways to make money from apps. In this digital era, mobile apps have become an essential part of our daily lives. They're not only convenient but also offer a great opportunity for entrepreneurs and developers to earn money. Whether you're a newbie or an experienced app developer, making money from apps can be both exciting and challenging. That's why we've put together a helpful guide to help you navigate the world of app monetization. We have covered various strategies and methods, including in-app advertising, subscription models, in-app purchases, and more.

Best App Monetization Models and Strategies 

Here we have listed down some of the best app monetization models and strategies.

1. Advertising Model

Advertising is the most common way to earn money through free apps. According to Statista, the amount spent on mobile advertising was USD 327.1 billion in 2022 and it is expected that there will be an increase of 17.2 % reaching USD 399. 6 billion in the year 2026. You will get paid every time users click the ad or just view it. If they go to the next extent and install the application or program advertised, you will be paid more. In a free version app, you can increase your revenue by collaborating with third-party networks and running their ad campaigns for a particular period. There are many types of In-app ads. Some of the popular ones are listed below. 

Interstitial Ads

Interstitial Ads are full-screen ads that appear on the interface of the users’ app or website for a particular time frame. Users can close this ad but the timing of the closing option varies depending on the ad type. Most of the interstitial ads take at least 5 to 10 seconds to display the closing option for the users to continue what they were doing previously. They often come as a cost-per-click model. You can earn money each time the ad is displayed or clicked. It is the ideal way to provide users with access without charging them while earning revenue.

Banner Ads

This type of app advertisement is shown in high-visibility locations where users’ attention easily gets caught such as the top, bottom, or side parts of the app screen. They often pop in as an image or multimedia with an engaging text and Call To Action (CTA). These are displayed to generate leads and purchases through clickthroughs. They come in different sizes big and appealing enough to make users stay on it. Without you having to do anything, through banner ads you will get paid by advertisers.

In-app Video Ads

With the growing popularity of video content, video content marketing has become a lucrative market that many advertisers have tapped into recently. In-app video ads are embedded or tapable video content that lets users watch the video inside the app itself. Generally, these types of ads are given as reward videos, a part of in-app rewards for users. You can earn revenue from the advertisers if the users watch, click on, or purchase the app or product being promoted in your free version app.

Native Ads

Sometimes users get irritated and disturbed by random advertisements which may result in them uninstalling your application. This is where native ads come in which are used as a natural element that matches the look and feel of your app. They don’t look like advertisements and fit in natively making it difficult to recognize them. Users cannot find common call-to-action words such as subscribe, sign up, etc. It might pay you less compared to other monetization models but is seen as a popular and effective strategy to generate consistent revenue.

Rewarded Videos

This is the only advertising model that is beneficial for app owners, advertisers, and online users. Users watch these video advertisements in return for points, extra life, puzzle hints, and virtual stuff. Rewarded videos are highly popular among app owners because they boost their revenue and help keep users engaged with their app. But if you want to succeed with rewarded video ads, then you need to decide when you would display them and make users think it is worth their time to watch them. Surely, it will help you drive more revenue than you expect.

2. Subscription Model 

The subscription-based model has become increasingly popular in recent days. If you are not really into advertisements, then consider selecting this model. If users are given access to a limited version of your app for free. You can give users premium features like ad removal, exclusive content, and many others like these in the subscription model. Many applications use the subscription model such as Spotify, Tinder, Hulu, etc.

For those who are wondering how you can make money with a subscription model in the free app, you need to offer a free version with limited features or for a limited amount of time. You can charge users to use the premium features of your application. Then users who are impressed with your app would like to access full content without any restrictions. One of the effective ways to make users opt for your subscription model is to give them free access to a limited version of high quality.

3. Sponsorship Model

Sponsorship is a type of app monetization model that can reap more benefits when it is done right. It is ideal for those apps with an existing strong user base. The sponsorship model is all about partnering with brands and businesses that align with the users and theme of your app. Some apps are made solely for monetization purposes. Some of the common sponsorship ideas are in-app branding, sponsored content, and exclusive promotions.

So before developing it, you can customize your app idea in such a way that it suits the sponsors with whom you want to have sponsorship. The one way you can boost your revenue is to connect with sponsors whose brand and app match your app design and idea. There are two types to deal with revenue, you can set a certain monthly subscription fee and another one is that the revenue of the app is divided equally. 

4. Selling Merchandise Model

If your mobile application has managed to establish a strong brand or a loyal user community, you can explore the option of generating additional revenue by selling branded merchandise. Branded merchandise can take various forms such as clothing, accessories, or digital items like stickers and icons. However, to make this model successful, it is crucial to create merchandise that is not only visually appealing but also aligns with your app's identity and resonates with your users' interests.

To create compelling merchandise, you need to understand your users' preferences, their demographics, and their buying behavior. Limited-edition items are an excellent way to generate a sense of urgency and exclusivity that can encourage purchases from your loyal fan base. Additionally, you can leverage your app's social media presence to promote your merchandise and engage with your audience. By doing so, you can build excitement around your branded merchandise, foster a sense of community, and ultimately increase your revenue.

5. In-App Purchases Model

In-app purchases (IAPs) have become an increasingly popular monetization strategy for app developers, especially in the gaming and content-driven categories. By offering virtual goods, premium content, or extra features for purchase within the app, developers can generate a lucrative revenue stream while providing users with a more personalized and enjoyable experience.

However, it's important to ensure that the purchased items are not essential for basic functionality and instead, enhance the user experience. This not only keeps users engaged but also instills a sense of trust and loyalty in them. Regularly updating and introducing new IAPs can further enhance user engagement and encourage them to spend within the app.

In addition, developers need to be transparent and provide clear information about the cost, benefits, and terms of the purchase to avoid any misunderstandings or user dissatisfaction. By doing this, developers can create a positive and sustainable revenue model that benefits both the app and its users in the long run.

6. Affiliate or Referral Marketing Model

Affiliate or referral marketing is a popular approach to monetize your app by promoting products or services relevant to your app's audience. Essentially, you partner with affiliate companies or individuals to promote their products to your audience. For every successful referral or sale made through your affiliate links, you earn a commission.

To succeed in affiliate marketing, it's crucial to select the right affiliate partners that align with your app's niche and add value to your users. You want to choose partners whose products or services are of high quality and whose values align with your own. By doing so, you can build trust with your audience and increase the likelihood of successful referrals. Let’s take a look at some of the cost models that offer unique advantages.

Cost-Per-Mille (CPM)

Cost-Per-Mille, also known as Cost-Per-Thousand, is a cost model where affiliates earn a commission based on the number of impressions of the affiliate's promotional content. In CPM, advertisers pay a fixed amount for every 1,000 impressions of their ad, regardless of whether the viewer takes any further action.

Cost-Per-Click (CPC)

Cost-per-click is a performance-based model where affiliates earn a commission for every click generated through their referral links. Advertisers pay affiliates based on the number of visitors who click on the affiliate's link and visit the advertiser's website. CPC is a common model for driving traffic and can be effective in measuring the effectiveness of different affiliates in generating interest.

Cost-Per-Sale (CPS)

Cost-Per-Sale, also known as Cost-Per-Action (CPA), is a model where affiliates earn a commission when their referrals make a purchase or perform a specific action on the advertiser's site. Affiliates receive a predetermined percentage of the sale's value or a fixed amount. CPS is often considered the most performance-driven cost model as it directly ties compensation to actual conversions.

Cost-Per-View (CPV)

Cost-per-view is a model primarily used in video advertising. Affiliates earn a commission when their referrals watch a specific video or video ad. Advertisers pay based on the number of views, making it an effective model for video content promotion.

Cost-Per-Install (CPI)

Cost-per-install is commonly used in mobile app marketing. Affiliates earn a commission for every user who installs the advertiser's mobile app through their referral link. This model is popular in the app industry, where acquiring new users is crucial.

7. Collecting and Selling Data Model

Mobile applications have the potential to generate revenue by gathering and selling anonymized, aggregated user data to third-party entities. To ensure ethical and privacy-compliant data collection, app developers must adhere to stringent data protection regulations. By extracting and providing useful insights, app owners can sell data to market research firms, businesses, or organizations seeking to gain a comprehensive understanding of user behavior and preferences. 

However, transparency and data privacy play a pivotal role in this model, as it is imperative to maintain user trust and confidence in the app. Therefore, app developers need to take necessary measures to safeguard user data and ensure that the collected data is used only for legitimate purposes.

8. Transaction Fees Model

If your mobile application or website facilitates transactions between users or businesses, you can generate revenue by charging transaction fees. To ensure security and reliability, it is essential to implement a robust payment processing system that meets industry standards and complies with relevant regulations. In addition, it is important to define a transparent fee structure that clearly outlines the costs associated with using your platform. This will help build trust with your users and prevent any confusion or disputes over fees.

To make this business model profitable, it is crucial to strike a balance between competitive transaction fees and a seamless user experience. Research your competitors' fee structures to ensure yours is competitive, but don't sacrifice the quality of your service in the process. By keeping your fees reasonable and providing a reliable and user-friendly platform, you can attract and retain customers and generate a steady stream of revenue.

9. Crowdfunding Model

Crowdfunding is an increasingly popular method of raising funds for app development or expansion. Platforms such as Kickstarter, Indiegogo, and GoFundMe provide an opportunity for app developers to present their ideas to potential backers, and in turn, receive the necessary financial support. To attract backers, app developers can offer exclusive rewards, such as early access to the app or additional features, to incentivize potential supporters.

Additionally, crowdfunding allows app developers to engage with a community of backers who are passionate about the project and invested in its success. Crowdfunding can be an effective means of financing app projects, as it not only provides the necessary funding but also serves as a platform for building a community of supporters and advocates for the app.

10. Freemium Upsell Model

The freemium model is a popular strategy that allows app developers to offer a basic version of their product for free while gating premium features behind a paywall. This approach enables users to access core functionalities without charge, but enticing premium features can be unlocked through in-app purchases or subscriptions.

To ensure success with the freemium model, it's essential to offer enough value in the free version to retain users while incentivizing them to upgrade for additional benefits. This could include providing advanced functionality, exclusive content, or additional customization options to paying users.

It's also important to carefully balance the features available in the free and paid versions of the app. While the free version should provide enough value to entice users to try the app, it shouldn't include so many features that users have no reason to upgrade. At the same time, the paid version should offer enough additional benefits to justify the cost and encourage users to upgrade.

By implementing the freemium model effectively, developers can attract a large user base while generating revenue from paying customers. However, it's critical to carefully consider the balance of features and benefits to ensure the model's success.

Best Money Making Apps 2024

Looking for easy and fun ways to make some extra cash in your spare time? Look no further than these amazing money-making apps. Whatever your interests and hobbies may be, these apps offer a variety of ways to earn money, from sharing your thoughts and opinions to playing games and even shopping. So why not try them out and start increasing your earnings today?

1. MyPoints

2. Swagbucks 

3. Google Opinion Rewards

4. Shopkick

5. MistPlay

MyPoints

Have you heard of MyPoints? It's a super cool platform that lets you earn cash by doing everyday online activities like shopping, taking surveys, watching videos, playing games, and even printing and redeeming coupons. You can then use those points to get gift cards, cash via PayPal, or travel miles. Whether you're looking to make some extra pocket money or just want to get rewarded for things you're already doing online, MyPoints is the perfect companion for you. 

Key Features 

Swagbucks

Swagbucks is a popular reward and cashback platform that offers tons of ways to earn some extra cash. You can earn Swagbucks (SB) just by doing things like taking surveys, watching videos, shopping through the platform, and even searching the web. And the best part? It is possible to exchange your Swagbucks for PayPal cash or gift cards. With its user-friendly interface and variety of tasks, Swagbucks is a fun and easy way to make some extra dough while hanging out online.

Key Features 

Google Opinion Rewards

Google Opinion Rewards is a super user-friendly mobile app that lets you earn Google Play Store credit by answering short surveys. The whole process is easy peasy and takes just a few minutes. The questions are all about your preferences and experiences, so it's like having your voice heard. Once you complete a survey, you'll get rewarded with Google Play Store credit, which you can use to buy apps, games, movies, and more. It's a great way for Android users to accumulate digital currency without any hassle. Give it a try.

Key Features

Shopkick

Shopkick is an awesome app that rewards you for your shopping activities, both online and in-store. All you have to do is walk into stores, scan product barcodes, make purchases, or submit receipts to earn kicks. And guess what? These kicks can then be redeemed for gift cards, merchandise, or even PayPal cash. Shopkick makes shopping even more fun as you get to explore stores, discover new products, and earn money at the same time. While you do your shopping, it is an excellent opportunity to earn some additional money.

Key Features 

MistPlay

Are you a passionate gamer looking to turn your strong interest in gaming into a source of income? If so, MistPlay has got you covered. With MistPlay, you can play a variety of recommended mobile games and earn points that can be redeemed for gift cards or in-game currency. It is a fun and rewarding experience that is perfect for both casual gamers and dedicated enthusiasts alike. So why not give MistPlay a try and start making money doing what you love?

Key Features 

Difference between Free Apps and Paid Apps

Free apps and paid apps are two distinct monetization strategies in the world of mobile applications. Free apps are offered to users at no upfront cost, allowing them to download and use the app without making a payment. Revenue is generated through various means, such as in-app advertising, in-app purchases, and subscriptions. These apps have a broader user base but may require a well-planned monetization strategy to turn users into paying customers.

On the other hand, paid apps require users to make an upfront payment to download and access the app. Once purchased, users have access to the full range of features without encountering ads or limitations. This model offers a straightforward approach to monetization, with revenue generated directly from app sales. However, it may limit the potential user base, and the app needs to deliver exceptional value to justify the upfront cost.

Bottomline

If you're looking to make your mobile app a financial success, it's important to choose the right monetization strategy. There are plenty of options to choose from, such as in-app ads, freemium models, subscriptions, and in-app purchases. The key is to find the strategy that best suits your app's unique needs and goals. But with a little experimentation and adaptation, you can find the perfect monetization model for your app. If you want to figure out the best app monetization model for your app, then reach out to Maticz, the leading mobile app development company that can help you choose the right one for you.