How To Earn Money From Free Apps?

We all know how popular mobile apps have become, but how many people know about making money from apps. Yes, many don’t know – but for once everybody came across this idea – today, we will clear all your doubts and tell you how mobile apps make money?

Developing a mobile application takes a lot of effort: it is a long and challenging process. So, what are the factors that make them launch mobile application for free? It may be free for users – but mobile app development gets the most out of it. Some of them get from advertising, some through marketing and many other reasons.

There are many ways to make money from your phone and we will get the details of each of them. now it’s time to focus on how to make money from apps.

How much money can you earn from an app?

While not considered essential by Apple or Google, which did not add App Stores to the first versions of iOS and Android, it has become a major revenue stream for both.

ANNUAL GOOGLE PLAY APP REVENUEDespite a market share of less than 15 percent, iOS has led the way in revenue generation for app developers. This is partly because the iPhone is more popular in high-income areas such as Japan and the US, which spends more on apps.

ANNUAL iOS APP REVENUERevenue from Android and iOS apps reached $111 billion in 2020, an increase of 24 percent year-on-year. IOS accounted for 65% of total app revenue in 2020.

Follow these step to how free apps make money?

In-App Advertising:

This is probably the easiest and most popular way to make money from your app. Once you’ve created your app and are ready to publish your app, you can decide whether you want to let ads show on your app. When you allow people to place video ads, you get paid significantly more than banner ads. However, you have to think about whether your customers will have the patience to watch video ads whenever they use your app. These factors will help you improve your business model based on what you advertise.

One interesting way you can make money from your app is not to show ads. You can make money by offering your users an ad-free version of the app by purchasing an upgrade. There are multiple platforms to do this. Admob from Google is the most popular.

In-App Purchases:

This feature is more relevant to users’ outlook. In this revenue model, users can unlock some additional features or levels after purchasing an upgrade. In this model, the app can unlock any additional bonuses, premium content of any kind, virtual currency for the game or any additional level. Purchases in the app that the app owner may offer may be unusable items such as virtual currency or unusable items such as advanced levels, maps or other types of virtual goods. From among the most popular mobile apps more than 50% use in-app purchases to generate revenue. In the future, the number of such applications will only increase.

You should decide this before you create your app. If you plan to involve in-app purchases in your app, you should design the app in such a way that you create a logical payment wall. This strategy is adjunct on the freemium model, where you will offer your app for free, but offer access to premium features, advanced levels or premium content for upgrades.


Now every app has a subscription feature, and it’s a common way to get money from free apps. By using a paid subscription, the user accesses specific services. However, it does not work equally everywhere and with everyone. It applies to some mobile applications and industries. But marketers prefer it because it is very efficient for users to get apps. Moreover, such a model requires third-party co-ordination as the App Store does not charge any commission.

Subscriptions can be for a specific period of time, such as annual or monthly. Mobile offers period limits and user options according to them. Manually, the user needs to pay when outstanding, and automatically- it is automatically deducted according to the instructions given. If they no longer want to be a part of this subscription in the mobile app the user can terminate it as per their wish. Mobile app development has been made user friendly and easy to use, so that users do not face difficulties while subscribing.


Referral marketing is comparatively similar to the in-app advertising model for casting your app. However, marketing also has a different direction – affiliate marketing. It is reliable and efficient for attracting users and making money from the free app. Information about the affiliate company is in the content application and, based on clicks and installs, you get rewards. Rewards can be based on a cost-per-action model or a cost-per-click model. Some affiliate networks help you find specific people who are the perfect affiliate for your mobile app. There are different ways to calculate affiliate marketing.

Shows marketing metrics, which helps make more mobile app decisions and saves time to research for marketing. So, each visit, click, interest and many other factors in mobile apps make money.

Selling merchandise:

Another great way to make money with your apps is to sell merchandise. This is a great solution if you are creating an e-commerce app to sell your products and services. In this model, the apps are usually free to download from the App Stores. In fact, you can combine it with email marketing to bring out the products in front of the right audience.

This is different from in-app purchases where app users can purchase virtual goods, virtual currency, bonuses or some kind of premium content. If your business does not involve the sale of any physical goods, the sale of merchandise may also be a branded keepsakes or a product.

Email Marketing:

The last but trivial model is email marketing to make money through free apps. This is an old method of collecting data – but it is very profitable. The strategy applies to every industry, and the chances of getting one are huge. When users click on the email, it will generate money for the mobile app development company. It’s the same concept for cost-per-click, but the method is different.


There was a time when making money from mobile apps was a questionable plan. Times possess changed, so has the industry. People are not only charging the cost of creating the app but also making a fortune with it.

There are many ways in which you can earn money without paying your app users a penny, while in others your app users generate your revenue. There is no ‘true’ method here, but different methods may be true for different needs.