In a world where apps dominate daily life, how do developers profit from free listings? According to a Development Expert and a founder, the answer is multi-faceted. The first insight explores in-app advertising and purchases, while the final tip discusses monetisation through donations and in-game purchases. Discover all four expert strategies in this comprehensive Q&A.
- In-App Advertising and Purchases
- Monetisation Through Freemium Models
- Creative Monetisation Strategies
- Donations and In-Game Purchases
In-App Advertising and Purchases
Yes, app developers can make money even if their app is listed for free. When we worked on mobile gaming app PokerSquare, we listed it for free, and here is how we approached monetisation:
- In-App advertising: We integrated in-app ads, such as banner ads and interstitial ads. These ads generated revenue whenever users viewed or clicked them. As the game was casual and addictive, this strategy worked well for us.
- In-App Purchases: We offered in-app purchases that allowed players to gain more points and play higher-stakes games. This freemium model appeals to users who want to enhance their experience.
- Subscription Models: Although we didn’t include a subscription model in our app, I have seen it working well in many other apps. For example, an app could offer premium features for a monthly/yearly subscription basis.
- Affiliate Marketing: While this was not a core strategy for us, affiliate marketing can be an excellent revenue source. For example, a free app could promote other games or products, earning commission for every referral that leads to a sale.
There may be other innovative ways to generate revenue, but these are common strategies that app developers use.
Ravi Laudya, Development Expert, SAP Concur
Monetisation Through Freemium Models
Yes, app developers can generate revenue even if their app is listed for free. Many free apps implement monetisation strategies such as in-app purchases, where users can pay for premium features, additional content, or ad-free experiences. Another common method is in-app advertising, where developers earn revenue by displaying ads within the app. Another common method is in-app advertising, where developers earn revenue by displaying ads within the app.
Some apps leverage freemium models, offering a basic version for free while charging for advanced capabilities. Developers may also generate income through partnerships, sponsorships, or licensing agreements.
Ultimately, the key to success lies in creating a valuable app that keeps users engaged while integrating monetisation in a way that enhances, rather than detracts from, the user experience.
Máté Kovács, Founder – Teleprompter.com, Teleprompter.com
Creative Monetisation Strategies
Free apps can easily make money if you approach monetisation creatively. For example, many successful apps use paid subscriptions, purchases to unlock unique features, and advertising is an important part. My main advice is to make the basic version of the app fully usable, but add interesting paid features that provide additional value. To determine if your users are willing to pay for these features, start by conducting an audience analysis, gathering as much data as possible about who is using the app. You can also conduct surveys on social networks to find out what users think and what their needs are.
Keep in mind that the app’s popularity can also help you monetise it, for example by partnering with brands or influencers. With a sufficient number of users, even small advertising revenues can accumulate quickly.
It’s all about a smart strategy. It is critical to understand your audience and the market you are in. To get good profits, your entire team should dress up and start brainstorming. No one knows your product better than you, so start by answering the question: “Would I want to pay for this app, and why?”
Igor Shulezhko, Growth hacker, SEO and e-commerce analyst, HireDevelopersBiz
Donations and In-Game Purchases
There’s no free lunch. The closest thing to a free app is an open source application such as Signal. Developers donate their time to create and maintain the app, and solicit donations to pay for their servers. Other “free” apps contain pop-up advertisements that slow the application down, and annoy you into paying for it. Another “free” application tactic for monetisation is in-game purchases. You can download and play the game for free, but the things you have to acquire to progress through the game are not free.
Bill Mann, Privacy Expert, Cyber Insider
