So, you’ve built a sleek, functional mobile app—great! But now comes the real challenge: turning downloads into revenue.
Monetisation isn’t just about slapping ads into your app and hoping for the best. It’s a carefully planned strategy that aligns with your user experience, market, and business goals. In Day 13 of our App Development Series, we’ll explore the most effective ways to monetise your mobile app, from in-app purchases to subscription models and everything in between.
💡 Why You Need a Solid Monetisation Strategy
A common misconception is that monetisation comes after growth—but in reality, it should be considered during development. Your revenue model impacts design, user flow, and even your marketing strategy.
With millions of apps competing for attention, your monetisation strategy must balance:
- User experience and retention
- Scalability and recurring income
- Sustainability for future development
Let’s break down the proven monetisation models that can turn your app into a revenue-generating asset.
💰 1. In-App Purchases (IAP)
What It Is:
Users pay for premium features, digital goods, or content directly within the app.
Best For:
- Gaming apps (e.g., extra lives, virtual currency)
- Productivity tools (e.g., templates, advanced features)
- Customisation features (e.g., themes, avatars)
Pros:
- Flexible pricing
- Easy to implement
- Scales with engaged users
Considerations:
- Must deliver clear value
- Requires in-app purchase integration via Apple/Google Play SDK
- Platforms take a revenue share (typically 15–30%)
🛍️ 2. Freemium Model
What It Is:
Users download and use a basic version for free, with the option to upgrade for advanced features.
Best For:
- Utility apps
- Productivity tools
- Fitness & wellness platforms
Pros:
- Low barrier to entry
- Builds trust before asking users to pay
- Upsell opportunities with feature gating
Considerations:
- Requires a strong value proposition
- Premium features must be genuinely useful
- Risk of free users never converting
📺 3. In-App Advertising
What It Is:
Display ads (banners, interstitials, rewarded videos) within your app to generate revenue per impression or click.
Best For:
- High traffic, free-to-use apps
- Games and entertainment apps
- Apps with long session times
Pros:
- Quick to set up
- Multiple ad networks available (AdMob, Unity Ads, Facebook Audience Network)
- Doesn’t require users to spend money
Considerations:
- Ads must not disrupt UX
- Revenue depends on traffic volume and engagement
- Targeting and placement are crucial for performance
🔁 4. Subscriptions
What It Is:
Users pay on a recurring basis (weekly, monthly, or yearly) to access features or content.
Best For:
- Media streaming (music, video)
- Fitness & health coaching
- Learning platforms & SaaS-style apps
Pros:
- Predictable recurring revenue
- Higher customer lifetime value
- Strong user commitment
Considerations:
- Requires consistent value delivery
- Needs a cancellation flow and retention strategy
- Apple and Google take a revenue share (reduced to 15% after 1 year)
🛒 5. One-Time Paid App
What It Is:
Users pay upfront to download and use the app.
Best For:
- Niche apps with clear utility
- Premium tools with unique features
- Offline-first experiences
Pros:
- Immediate revenue
- No reliance on ads or upgrades
- Simple pricing structure
Considerations:
- Higher friction for new users
- No recurring income
- Must clearly justify the upfront cost
🤝 6. Affiliate Marketing & Sponsorships
What It Is:
Promoting products or services from other companies and earning a commission per referral or click.
Best For:
- Niche content apps
- Review platforms
- Travel, finance, or lifestyle apps
Pros:
- Passive income potential
- No cost to the user
- Can complement other revenue streams
Considerations:
- Needs relevance to app audience
- May require partnership negotiations
- Can affect user trust if overdone
🔧 Tools & SDKs for Monetisation
Here are some popular platforms to help implement and manage your monetisation strategy:
- AdMob by Google – For in-app ads
- RevenueCat – Subscription management made easy
- StoreKit (Apple) and BillingClient (Android) – Native in-app purchases
- Facebook Audience Network – High fill rates for global markets
- Unity Ads – Ideal for mobile games
🎯 Choosing the Right Strategy
Not every model fits every app. Ask yourself:
- What value does my app provide?
- How often will users interact with it?
- What is my target market willing to pay for?
- Can I mix models without hurting UX?
👉 Many successful apps use a hybrid model (e.g., freemium + ads, or free with in-app purchases and optional subscriptions).
📈 Final Thoughts
Monetising your mobile app isn’t a one-size-fits-all approach. The most successful apps combine smart strategy, user-first design, and continuous optimisation. Whether you’re aiming for passive income or building a serious digital business, choosing the right monetisation model will help you grow and sustain your app over time.
