February 6, 2018

How Do Free Apps Make Money?

Mobile applications are quite popular in the online app store and that too for free. Well!!! not technically, you obviously pay for the internet pack but still getting to choose among a billion options and getting it for free can be a little overwhelming. Now its hard to believe that all the developers are launching their application and let us download for free, then the question is how are they making money out of what they have built. One can either sell it to a businessman for his business upliftment or Can go for a paid application on the app or Google store.

Check out how are they making money

In-app Purchases

In-app Purchases are very common practices for earning through the application we often see the games demanding money after a certain level and there is some audience who can happily pay to know what is to be unlocked in the next level.This is generally done by most of the gaming apps where the mobile app developers can make millions and few have made too, for example, subway surfer and the clash of clans etc.

Subscription-based Model

Subscription-based Model is generally witnessed for music and video streaming apps or we can say entertainment apps that put forward a free trial app in the market and then ask them to subscribe to continue the entertainment further. Amazon Prime has this model and a music streaming app Spotify and many more. The developers should make sure to install the payment gateways for periodic recharges to avoid a third party hustle for payments.

Advertising

Advertising is yet another way to multiply your dollars but the trick is to place the advertisement at an appropriate time and at an appropriate place like if the video is buffering then the advertisement can compensate for it and if the climax is about to hit and the viewer cant close the application and can bare an ad for twenty to thirty seconds.

Sponsorship

Now the sponsorship is mostly taken by the apps which reach a particular popularity with its unique idea and there partnering with a company can generate huge amount because all you need to deploy in order to convert your app into full-fledged business is taken care by your partner and you can earn quickly.

Paid downloads

Now paid application in an app store or a google store may not be a very good idea for the new app-based business because very less fraction of people would actually go through it. There are a million apps in the store why on earth would they go for paid application when they already have a free substitute for it. So what do you do, you can let the users take a walk through your application for free and then allow them to go further with paid downloads. This can be the best way to convert your free users into paid subscribers.

Conclusions

Only an idea is not enough, one needs to come up with some market strategies for their mobile app development to be in the race or to go through with the process of building a big empire. Few more tips to go on with the above-mentioned strategies can be the following

— Accepting the ads relevant to your subscribers

— Avoiding to put ads on the homepage

— Giving away free trial packages before in-app purchases

Also read: know about micro-apps

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About `Author`

Richa Sharma, COO at Fluper, Perfect blend of beauty, style and intelligence highlighted by sudden sparks of enthusiasm. She leads daily operations and strategic initiatives. Richa collaborates with her team to optimize processes and execute business plans seamlessly.

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February 6, 2018

How Do Free Apps Make Money?

Table of Contents

Check out how are they making money

In-app Purchases

Subscription-based Model

Advertising

Sponsorship

Paid downloads

Conclusions

Hire Our Development Experts.

About Author

Richa Sharma

Expanding Expertise via Global Mobile & Technology Conference Participation

How Much Does It Cost To Develop An App In Abu Dhabi?

Airbnb Clone App Development: Features, Cost & Tech Stack

How to Build a Video Chat App Like Chamet in 2026

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