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how to monetize an app

how to monetize an app


Billions of users across the world have been hooked to the idea of being an entrepreneur. Every social media post you come across has some new information almost every alternate day. Across the globe, evolution is going on where ‘entrepreneurs’ are working on various ideas that would make a revolution and positively impact human lives. Having an idea is altogether different, but molding that creativity and executing matters the most, and where most people fail. So in this blog we will discuss how to monetize an app idea.

Being an entrepreneur does not assure you that you have a good grasp of its economics part. The majority of the time, that is where all the calculations of a great project go wrong. There is a high probability that even those with ‘unicorn’ funding would go bankrupt if the economics is not handled correctly.

Often in the world of entrepreneurship, you would come across the words ‘ seed ‘ several times. Usually, when a company or an entrepreneur goes in for funding towards the Venture Capitalists, it is also known as (VC). Every entrepreneur or a good project requires a lot of funding to be scaleable for the project. Your task would reach a plateau,’ which would create growth stagnancy. Of course, one may require various methods or techniques to help you get more market acquisition, wherein the product would reach a wider audience. Now, depending on how big you would like the company to be and what tools one would require for the company to grow would decide the total investment required.

how to monetize an app

The biggest question . ‘ why would an investor invest in your project or your company? What services are you offering to the consumers that the consumer would be attracted to your project? How would the investors be making their money on their investment? These are some of the fundamental questions an entrepreneur has to go through before heading into any project.

Times have changed. People have changed. Technology has changed. the way we do business has changed. There was a time when people used to read newspapers. During covid -19 lockdowns, people relied on digital papers, and many resorted to ‘APPS’ (Applications). Many monthly business magazines had their mobile apps, which did not hinder their business, and infact many saw a hike in the subscriptions which clearly shows business moving towards how to monetize an app.

People adapted to change . ‘change is the only thing which is permanent.’ The future is the technology and the way we incorporate technology into our life. Our life has become more straightforward with technology getting advanced. You are not an entrepreneur if you don’t know how to monetize an app idea. Yes, that is right. No matter how great your idea is but it the monetization that matters the most. The majority of the entrepreneurs are clueless about how their business app would be a tremendous monetizing tool.

Applications or (APPS) have become an integral part of our life, with over a million apps available on play stores. The global app economy is booming and is about to keep on growing. ‘ Google ‘ playstore has around 2.8 million apps, with over 86 billion downloads overall from the android users. On the other hand, Apple has a different statistic where it has a staggering 2.2 million apps for the ios interface. Currently, Google ranks the no one spot when it comes to popular distribution platform in the world. It is projected that by 2020 the revenue generated from mobile apps, including advertisements and in-app purchases, would double.

Almost 90% of the apps are free. Some of the apps are paid, but consumers are not comfortable spending a couple of bucks for apps. Instead, they would prefer to pay for some in-app benefits, which would be worth the price.

mobile app monetization

The point of view for the developer and the consumer is both different. A developer would work in various ways as to how he can monetize an app idea. The consumer, on the other hand, is looking for a unique experience that would be based on trust, accessible mode of payment, new updates, new features, consumer benefits.

So how to monetize an app?

The question is small, but the answer is significant, and monetization is the biggest challenge. Although the basic rules of app monetization depend on




The following methods are often a way through which one can monetize an app.

How to monetize an app via advertising

For decades, ‘ advertising ‘ has been the most popular revenue stream. However, most of the time, adverts are annoying since they create a nuisance and persuade consumers from the main topic. Ever got annoyed by that app advert ?? Your favorite Video or game is being played, and whoops, there comes the ad where almost a mandatory 20-second wait is needed until the ad finishes. App developers still opt for advertisement as a useful tool for app monetizing, and to this date, it is the most profitable mode of revenue. Displaying commercials inside your mobile apps and then get paid by the ad networks. Almost 33% use in-app ads as the only income source to get born every time the ad is played. The advertising model contains the following methods.

  • Interstitial

These are the pop-ups displayed at a specific time. The ad can be closed by a button that is often resembled by the letter ‘x’ and can be spotted in the ad’s top right corner. One-click, and it is over. This method for app monetization is efficient at its natural transition. This works best for gaming apps, news, or any content.

  • Banners

These are less annoying for the consumer and appear in various sizes and can fit either into the screen’s top or bottom.

  • Video Ads

Often they appear out of nowhere on their own and are used as a rewarding tool. The consumer could benefit from this wherein they get some benefit. E.g., getting an extra life in a video game if the video ad is watched until the end.

  • Native Ads 

These are less annoying to users. These are sponsored contents or videos with the sole purpose aimed at the promotion of a product.

  • Incentivized Ads

Many app users prefer to reward apps over applications containing ads. Many tools allow rewarding consumers on the completion of a specific in-app action. This is like filling out a survey form. Almost 91% of the users interacting with incentivized ads pay attention to the brand behind it.

how to monetize an app

Monetizing an app via email marketing

It is one of the oldest techniques when it comes to app monetizing. This medium is often used to reach potential users and give them a timely reminder if they have not been using their favorite app. The basic concept is to gain the user’s email id in return for some privilege or customer reward.

Sponsorship– Mobile App Monetization

Sponsorships are a great way through which one can do app monetizing. Suppose if your app has an extensive user database, you could approach companies with larger consumers and suggest how your app could help the sponsors get their product across your users and how your users could also benefit from the work you sponsor is promoting. It’s a win-win situation for both the app developer as well as the sponsor. This strategy is excellent for expanding customer database and also a way of app monetizing.

Subscription Model- Mobile App Monetization

Subscriptions are how a user gets access to restricted content or several features that get unlocked after the subscription fee is paid. This revenue generation model is used for apps that stream video, audio, business articles, newspapers, etc. Initially, a free trial is given, and later on, a subscription fee is charged to access without restriction. GOOGLE and APPLE provide the ability to handle subscription transactions through their platform, making it easy for developers to implement it. The costing varies from platform to platform. Some leading business magazines and newspapers have acquired millions of subscribers using this method. This method’s only drawback is that the content needs to be updated continuously, keeping the users engrossed in the content, which would stay recurring subscriptions. This method is the right way to monetize the app.

mobile app monetization

In-App Purchases

In-app purchase is a feature via which a user can directly purchase an item which he requires. These purchases may vary from apps to apps. In the case of a gaming app, it may involve the purchase of a new gaming character or avatar, new levels in the game, new weapons, and new simulation or new map unlock. Other apps may include purchase of contents, which may vary according to the kind of app the developer has developed. Almost 50% of the leading apps use in-app purchases as a stream of app monetizing. Game developers mostly prefer this because of the digital money transaction involved. Some gaming apps claim to have generated over $1 million in revenue in a day while some claim around $1.5 million. The drawback of this monetizing app model is the payment gateway. A third party payment gateway like PayPal is required for payment. This comes at an additional cost as some of the payment gateways are not cheap and free.

how to monetize an app

Freemium Model

Freemium apps are provided free of charge but contain paid or premium content purchased through in-app purchases. Initially, the free app version is downloaded, and if the user is satisfied and wishes to go for the full version, he can go and purchase it. This is the best way for mobile app monetization where maximum users are gained due to free. Some educational apps use this feature where the content is good, and to unlock more exclusive content, one has to make the purchase.

How to monetize an app via Affiliate marketing and Lead Generation

This has been a time-proven app monetization strategy as affiliate marketing can help app developers monetize their app. Affiliate marketing is about getting rewarded with a commission fee. For every instance, when an app was downloaded or specific action was taken with an app via the link placed inside your app. One needs to decide which apps are to be promoted inside those applications. Affiliation also works with lead generation via which you could gather information.

People who are interested in purchasing specific services or products. It is a way via which one gets paid to give a lead to another company that is looking for genuine buyers who are interested in particular products which the other company can supply.


Mobile app monetization is a crucial ingredient for any entrepreneur to make a successful venture. In the coming years, this trend would only go up as people will adapt to new living ways. Those who adopt technology and go with the flow have a greater chance of survival in the future as competition would only grow more fierce. APPS are the future, and one will see millions of apps shortly. What matters is how to monetize an app?

Jayant Sharma
Jayant Sharma
Managing Director, Founder @ Phontinent Technologies