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How Do Free Apps Make a Profit?

It’s quite obvious how paid apps make a profit, but free apps often make a profit also. In this article, we will explain how some free apps generate revenue. It’s crucial that that you have a tailored monetisation strategy for your app.

There are many more free apps compared to paid applications on the app store. This puts into question how all of these free applications on the app stores make money? If you have a free app and want to make money straight away, read this blog to find out ways that your app can generate revenue.


App Monetisation Strategies



Advertising is one of the main ways that free applications make a profit, it is an easy way to implement and follow the external third-party network. App owners will sell space on the app and they will receive money whenever the ad is clicked on or whenever the user clicks on the ad and then purchases the app via the advertisement.





Subscriptions are often described as the most useful monetisation app strategy. A common example of implementing this is a short free trial period at launch and then asking users to pay a subscription fee if they want to continue using the app. App publishers often put content forward within apps for a limited period of time and then charge subscription fees. This allows users to read the content published by them for a fee.


Merchandise Sales


If you’re trying to think outside of the box, consider a merchandise sales approach, where the app owner can sell merchandise within their free app. Lots of the large retailers across the UK build apps to primarily sell products such as clothes and toys etc.


In-App Purchases


In-app purchases are integral for most e-commerce businesses. This feature can only be implemented in the more complex apps which increases the price of the app development procedure. This feature is definitely worth the extra cost as it gives users a fast and efficient experience. The trend of in-app purchases is set to continue, we’re seeing more demand for this feature in our client apps.


Freemium Upsell


This technique is a process where the user downloads the app for free, but are required to pay for additional features once they have downloaded the app. This would be paid through in-app purchasing features. This is a popular tactic for many custom mobile apps as app owners experience an increased download rate and then users will make purchases once they’re using the app to generate a continuous revenue stream.


There are many different app monetisation models that app owners can adopt to make money from their free mobile applications. The information provided should help you decide which model will help you generate the most profit possible through your free app.



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