Monetization of free mobile application – how it works

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Development of mobile application can increase company awareness, attract new clients and customers, and cultivate loyalty. After spending a lot of time and resources on application development, you will definitely expect it to be a good means of earning money too.

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Many people began development of their own mobile applications because they think they can easily achieve success like Viber or WhatsApp. But the truth is that with a great number of mobile applications, especially free ones, your application must meet the requirements and needs of users in order to become a real breakthrough. Having developed a new mobile application and investing a big deal of time and money in it, people begin considering the best ways of application monetization.

Paid downloads or pay per download

One of the ways to monetize your application is actually to charge money for its download. But the problem with paid applications is the wrong pricing. Before fixing a certain price for mobile application, you need to put yourself into the customer’s position and think carefully whether you would pay for this application. In what way is your application unique to be paid? If it is really unique and has value, it is better not to fix a high price for it. Make it available for people even if it a paid application. 1,99-2,99$ is the acceptable price for mobile application, especially a new one.

New method

If your application if free, you have various possibilities to monetize it. In the world of constantly developing technologies, IT specialist and developers invent new possibilities to achieve a desired result in short terms. Today the number of companies like that monetize free mobile applications quickly and easily has dramatically increased.

There are also standard and well-known monetization strategies which can be used for monetization of free mobile applications.

In- app advertising or mobile ads.

This method of monetization is one of the most popular methods among developers of mobile applications. The ads run on special place that is sold within your application and the revenue is accumulated based on the number of times that the user has clicked the ads. It works very well with entertainment applications.

In-app purchases or subscriptions.

The idea of this method of monetization lies in the concept of purchasing certain physical goods or virtual services. This method is also very popular with entertainment applications. For example, you can purchase extra lives in a game. However, this type of monetization requires a very loyal category of application users and, thus, it will not work with every application.


This is also one of the recent methods of monetization. Sponsorship means partnering with advertisers and receiving a share of the revenue of redeemed rewards, which users receive from completing some in-app actions.

Freemium or gated features

Developers that use this method of monetization offer their mobile applications for free. However, to get access to particular features and functions of mobile application, you need to pay money. The goal is to attract users and engage them until they are ready to pay for additional functions.

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Monetization of free mobile application – how it works, Seekyt
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.