How to Earn Money By Developing Mobile Apps

Mobile apps are essential to building a business comfortably. Nowadays, adblocking mobile apps development is the best way to establish businesses and make improvements to several companies. However, everyone wants to learn how to earn money by developing mobile apps. At the same time, building mobile apps is the best platform to expand a business and make a big hit like other social platforms. Regarding the other beneficial side of mobile apps, most of the owners want to make money with their apps. Making money with mobile apps is becoming popular every day. But before getting to this, making a revenue strategy is crucial to start the mobile apps development process. Without a convenient range of strategies and plans, it could end up wasting time and money. Also, doing research is another essential factor in getting started building your first mobile app. Earning money by developing mobile apps requires a proper plan to build a mobile app for business. Additionally, the mobile app development process needs to be based on convenient research, which all starts with an effective monetization strategy.


The mobile apps industry gets bigger every day, including the number of mobile application users. In this guide, we are going to describe the beneficial sides of mobile apps and how to earn money by developing mobile apps. Our professional software engineers have an excellent range of experience in developing mobile apps. We “REXO IT” as a mobile app and software development company; we have worked with several entrepreneurs over the years and helped them out by converting their ideas into the best money-making mobile apps. Here, we will share the best strategies and ideas about mobile app development that helps to make money.


Mobile App Monetization Option

Recent studies on the internet show that more than 90% spent on mobile devices is on apps. Also, 10% of the users do browsing while using mobile phones, which clearly shows that the mobile phone users love to use apps, so the opportunity is there. After publishing an app to the app store, you need to realize that downloads do not always directly translate to dollars. Therefore, mobile app development is convenient for businesses and companies to establish their service comfortably. Also, another study shows that for generating revenue by publishing mobile apps, there is a win-win scope for free apps. As per the Apple App Store and Google, PlayStore statistics illustrate that 90.8% and 96.2% of people are interested in free apps for iOS and Android, respectively.


The Difference Between Free Apps and Paid Apps

There is a big difference between free and paid apps. All sorts of mobile apps are preferable to make the products or services easier to interact professionally.


Free Apps: Free mobile apps are convenient, and conveniently attract targeted users and potential customers. It also increases the users and visibility, including the app's downloads. These types receive so many reviews and come with an excellent way to optimize the app into the app store. Free mobile apps or software development is less expensive compared with paid apps. Also, it helps the business owners to build brand image and name in the online world conveniently. As well, it comes with multiple monetization opportunities in the future.


Paid Apps: Due to the paying option, paid apps to include fewer downloads and automatically lose potential customers. Paid apps require higher user expectations, where you need to make sure the app works flawlessly and offers a complete set of features. These types of mobile apps require a higher development and design process. Paid apps come with limited monetization options, which may require monthly or yearly fees.


How Much Money Can You Make from an App?

There is a huge opportunity to earn money with mobile apps. Mobile applications have the potential to generate billions of dollars of revenue in a year. But very few apps finally reach that number. On the other hand, surprisingly, a large number of mobile apps ended up with absolutely no money. However, more than 200 developed mobile apps in the app store generate approximately $82,500 in revenue a day. Also, more than the 800 apps in the Google Play Store generate $3,500 in a day. But the number of generating revenue also varies with the categories of the mobile apps. Whereas the top gaming apps make about $22K a day, and the entertaining mobile apps earn about $3,090 a day. Generating revenue entirely depends on the types of apps, including the popularity of the mobile apps.


Top Revenue Generating Models with Mobile Apps

Several types of techniques and strategies are available for making money with mobile apps. 

Here, we are going to talk about some of the best revenue-generating models for mobile apps development to earn money spontaneously.


  • Advertising

  • Subscriptions

  • Selling Merchandise

  • In-App Purchases

  • Sponsorship

  • Referral Marketing

  • Collecting and Selling Data

  • Freemium Upsell

  • Physical Purchases

  • Transaction Fees

  • Crowdfunding


These are the techniques and strategies, which are beneficial to making money with mobile apps. All of these are different steps to earn money by developing mobile apps.



Advertising is the easiest and most popular way to earn money with a mobile app. It is the best strategy to make money with free apps. After developing a mobile app, you need to publish it on the app store. Then you can decide whether you are going to advertise on your mobile app. However, advertising on a mobile app is done by third-party ad networks. The payment process with a mobile app will start after the advertisement. You will get paid as per the number of impressions in the ads or the clicks by the users. The mobile app owner will get it whenever the user clicks on the ad or installs the application via advertisement. For generating more revenue, you can also run ad campaigns to earn ad revenue for a specific time. 


Primarily, there are 4-types of advertisement monetization displayed by the ad providers. While publishing ads to your mobile app, you need to monitor your targeted user’s reaction, whether they are enjoying the ad or are they adblocking them.


The 4-types of ad monetization are;


  • Interstitial Ads

  • Banner Ads

  • In-app Video Ads

  • Native Ads


Interstitial Ads are full-screen pop-ups type advertisements that display at specific time frames. The users can comfortably close these types of ads by a close button at the upper left or right corner. Also, these ads can be displayed when a user finishes his task and wants to save it into his phone. It is an excellent strategy and a great example of app monetization, which helps to enhance the app user experience.


Banner Ads are displayed to the users at the top or bottom parts of the app screen, which appears in different sizes while displaying ads. Additionally, these kinds of ads are often small and less obstructive, and it helps the users comfortably use the mobile app.


In-app Video Ads are excellent to use. These types of ad videos are displayed to the users automatically and generally. These ads have used the exchange for some in-app rewards. By viewing these types of ads, the user can get the app currency by unlocking several levels in the game with other additional features. It is a famous method of Ad revenue model among users.


Native Ads are convenient come with the best integration and appear as a natural element in the app. These sorts of ads are preferable for promoting a product or mobile app through advertisement. When you are doing affiliate marketing, these sorts of ads help to enhance the user engagement for your app for free. But the native ads can be pretty low while generating revenue to other advertising methods. Also, this advertising strategy is the most hated by users.



Subscriptions are another popular method of advertising. It is a highly effective process for generating revenue and a fair deal for both the parties involved, the mobile app owner and the users. This kind of strategy is often used in audio-video streaming websites, cloud services, and online news services. It can be applied when the mobile app becomes famous to the users and finds some value in its offerings will upgrade to a paid subscription for unlimited access or additional features to the app content. Another revenue-generating similarity is the free-trial option, where users get a free trial period and enjoy unlimited access to a mobile app. But when the free trial period expires, the user needs to buy the subscription to use the app beyond the trial period. By using this advertising method, you will get a more engaged and serious audience to use the functionality of your mobile app development.


Selling Merchandise

Selling merchandise is the innovative advertising approach for free mobile apps. This strategy is mostly preferable for eCommerce businesses. If you are building an eCommerce app to sell your products or services, then it will be an excellent solution to do significantly. These types of apps are generally free to download from the app stores. You can use this strategy to sell your products by using the app or via email marketing. You can also combine this method with email marketing to get the products in front of potential customers. Selling your products or services online attracts more customers anytime, anywhere. Also, these types of eCommerce website solutions bring convenient features to the business, where it enables the users to browse their inventory & order accordingly.


In-App Purchases

The In-app purchase is a direct method of mobile apps development. It is usually a simple process for making revenue. This strategy is a prospective revenue-generating model, where users can comfortably unlock some additional features or levels after buying an upgrade of the mobile app. In-app purchase is an excellent method, where the users get distributed access to the powerful and advanced features of the mobile app. It also allows the users the best user experience much swifter and empowers user interaction. By using this strategy, the app owner can offer the users the purchase of consumable virtual currency and non-consumables like advanced levels, maps, or other kinds of virtual merchandise. More than 50% of the app owners use the In-app purchases strategy to earn revenue. If you are deciding to do something like this, then you have to ensure proper planning with the best design before building the mobile app, and the design of the app should include a manner that you create a logical payment wall. It is a preferable method for developing gaming apps, where you can take an excellent chance to obtain high profits from a low-monetization method.



Sponsorship is another method of earning money with mobile apps. It is a less commonly used monetization method but still comes with the best strategy to use. This strategy works when the app owner finds sponsorship with a similar or the same target market. When you get the sponsor for your mobile app, you can white label the app for adapting their app design to match the sponsor’s brand. It can be a powerful strategy to use if you build the right niche app for a targeted audience and launch it on behalf of another company. Because of the similarity of sponsorship and owner, it will come with the best possible way to attract the targeted audiences addressed by developing the mobile app. It is an excellent way to make money from apps through sponsorship deals. This In-app purchase will be a convenient strategy to use, which involves offering advertising space within your app to brands, including exclusive offers, content, and discounts.


Referral Marketing

Referral marketing is an excellent option for advertising. This marketing strategy involves promoting a third-party product or service. It is a way of generating revenue to optimize revenue opportunities. By using this advertising strategy, the app owners can promote or sell affiliate products or services depending on the number of clicks and installs. Also, you can use pop-up ads as a mobile app owner for promoting other apps or advertising products. However, referral marketing models come with several types, which the publishers use in their mobile app development.


The types of referral marketing models are;


  • Cost Per Action or Cost Per Acquisition (CPA)

  • Cost Per Click (CPC)

  • Cost Per View (CPV)

  • Cost Per Install (CPI)


Cost per action or acquisition CPA marketing model is preferable for affiliate networks. For marketing, you need to figure out several same affiliate networks, which are similar and suit your mobile app. This marketing model is beneficial, and it helps to promote other apps, advertise products with pop-ups, as well as promote apps via an in-app store, and earn money.


Cost per click CPC advertising model based on the number of clicks on an ad displayed. For using this strategy in your mobile app, you can join Adfonic or Google’s AdMob to advertise comfortably. Both of these advertisement companies provide text and display advertisements, which will help you to make money from your developed mobile app.


Cost Per View CPV is another marketing model to use. This advertising model involves and depends on the number of ad interactions or video views. Gaming app publishers use this strategy to earn money through advertisement. Most of them use video and interstitial ads to their smartphone game for creating natural breaks in between game sessions.


The Cost Per Install is a way of marketing through advertisement. By using this strategy, the users get paid for each install of the advertised app. It is a way of working with the third-party networks that have software to install to your mobile app. This advertising model is an efficient way of marketing, where the fee required by the network ranges from $0.80-to $3.00. This strategy is a better option for campaigns for global traffic generation to promote other apps and make it a lucrative market to play.


Collecting and Selling Data

Collecting information of users and selling their data to other companies is preferable with free mobile apps. It is the strategy where free mobile app publishers collect a lot of data in terms of user behavior or other app usage. This type of marketing model is convenient, where behavioral data are required by many researchers in different fields for several aspects. Using free apps means you are letting the publishers use your data for diverse purposes. In this case, a publisher can sell information and behaviors data to the researchers to make a handsome amount of money. The information of users’ data contains email addresses, social media accounts, and personal preferences. There are two types of benefits of this revenue-generating model, where you can sell the user’s data to the researchers, or you can use all this information for your purposes. It is a beneficial mobile app development & monetization model, which becomes a helpful tool for identifying consumer voices and making them available to apt companies.


Freemium Upsell

Freemium upsell means the mobile apps are free to download, but it contains paid or premium features to use. Freemium app means the mobile app has several additional paid features rather than the regular version of the app. A user can enjoy such an app without paying, but full access to functionality to the app requires a purchase.  This revenue-generating model is mostly preferable for education, health, and sports applications. Because of the premium features of these types of apps, publishers and business owners can use these opportunities to make money and attract customers. This advertising strategy requires a low maintenance app monetization tactic, where you can earn money as a publisher because of the wide reach as it is free for the users.


Physical Purchases

Physical purchases are a convenient advertising method for new business comers. This advertisement method is acceptable for new startups or eCommerce businesses, where the publisher needs to start with a free mobile application to sell their products or physical goods. The best part of this business model is flexible for every vertical and business. It will allow you to make a comfortable profit as a marketer with the lowest amount of risk. Also, you can adopt this advertising model with affiliate programs and partnerships that drive referral revenue. This physical purchase model is preferable for new startups, and it is helpful for the publisher, where they can conveniently establish their business and provide professional services to the consumers. Additionally, this ad monetization model also helps publishers to promote their services or businesses, brands comfortably.


Transaction Fees

Getting transaction fees is another excellent revenue-generating model to monetize your mobile apps. Earning money with this advertising model is possible by using mobile apps with a platform where digital transactions happen regularly. For example, you can charge fees when third parties sell their products by using your mobile app, and that can be carried out online. By implementing this strategy, the publisher can earn money through the mobile app in every single transaction. This app monetization model is a possible way to make money without so much investment. However, this advertising technique is a convenient method to use and includes an income generation in disguise. Additionally, it promotes cashless transactions without harming user credibility. The transaction fees advertising model is preferable for digital transactions apps to generate more revenue conveniently.



Crowdfunding is a convenient model of app monetization to make money. This advertising strategy is preferable for startups and companies. It is a famous method for raising money for the development of a mobile app, where crowdfunding involves several platforms like Kickstarter, Patreon, Chuffed, Crowd Supply, Fundable, Indiegogo, and many more. However, this monetization model is an excellent concept in recent times, which is used for raising money through apps for charitable organizations. It also includes unique business ideas through the development of the mobile app itself. It is preferable to build mobile apps for nonprofit organizations to do or run crowdfunding campaigns. This app monetization model allows people from all over the world an opportunity to extend a helping hand to others.


Final Notes

All of these strategies and techniques are preferable for earning money through mobile app monetization. You can successfully generate revenue by implanting any of these strategies, where you only need to research your targeted audience. Also, the monetization of business models is essential to make money with mobile apps. Analyzing your competitors is also a convenient technique in starting, which will let you identify the benefits and drawbacks of your app monetization. These are useful models for generating revenue with apps. Different methods have different requirements, and you need to decide which one is beneficial for you as per your business or service and the app structure. Therefore, research is essential for finalizing the preferable method for your app monetization. While working with a renowned mobile app development company, you have to take the app structure and target audience into consideration for making the best monetization strategy. 

We hope you find this article well and get all the information to strategize clearly about how to make money by developing mobile apps.

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