What’s your favorite monetization system?

What’s your favorite monetization system?

If you want to maximize the potential return of investment from your next mobile application, then you need to make sure to use at least one, if not more, of the most powerful app monetization models. Generating revenue is much more than relying on pure luck and hoping that money will somehow make its way into your account. In the current plethora of apps out there it’s easy to get lost if you don’t know what you’re doing. Among the leading monetization problems in the industry are the lack of focus and strategy. For the beginning, it’s crucial to understand the difference between the business model and monetization model. Those two concepts are closely related but knowing them apart can enable you to design them in a more efficient way.

An app monetization model is a part of the business model, and one of its crucial components. The business model is the outline of the general way the company is going to operate. Monetization is a segment of the general business model that focuses especially on the methods the company will earn money with. Once you realized that key difference we can move forward and present you some of the most successful app monetization models. These are the most bankable strategies currently available on the market.

Monetization model 1 – in-app ads

The option that will offer a multitude of revenue opportunities and that will be readily available is the in-app ads model. Both new and experienced developers usually start this model. This model eliminates any potential cost barrier since the application is free to download.

In-App Ads

When the application is downloaded, the model gathers information about the user, which is then sent to in-app advertising networks, who will select your application for specific ad placement. This is among the simplest and the most Direct techniques for generating Revenue through your app.

Monetization model 2 – in-app purchases

In this model, you will need to have the things to monetize. That means you will have to sell either digital or physical goods or services. Users of your app will use this model to purchase the goods related to your app. There is a wide range of various types of virtual consumer goods that could be sold through in-app purchasing.

in-app purchases

Monetization model 3 – paid or premium apps

In this model, users cannot download apps for free, but they have to buy it from the app store in order to download and use it instead. This places a cost barrier on users, so they cannot just download the app. Therefore, it requires a superior market that will Showcase your mobile application and how it’s superior compared to the similar apps that are available for free.

To do that you have to have a great mobile marketing strategy to convince the users that your app is worth the prize.

Monetization model 4 – freemium apps

This model put the app in a spot halfway between completely free and premium purchase. The app can be downloaded and used for free, but certain additional features are locked and can be unlocked exclusively true processes by the user. This means the premium version of the game can be purchased at the premium price, or various desired features can be bought individually.

freemium apps

In order for this model to work you need to decide on the version that will be appropriate for your app. Many developers like this strategy because it overcomes initial download barrier, but still there is a way to build a foundation of users who will pay for the application or at least some of its features and tools.

Monetization Model 5- sponsorship

This is one of the new models, as developers seek partnerships with specific brands and advertisers. They reward users when certain specific app task is completed. If you are a new developer without a hit application, this might be a model toward which you will strive after you’ve built a solid user base that demonstrates your value to the sponsors.

Agencies and brands will pay for the awarded actions of the users, and you will be able to collect a percentage. This seems like traditional affiliate programs and advertising from the sponsored brand or company will additionally engage the future users.

Monetization model 6- subscriptions

This model is similar to freemium, but it’s different in some integral ways. Instead of features, it’s content that is locked and must be unlocked exclusively through the purchase. Users can download the app and access a certain amount of content for free, but after a certain point, a paid subscription is necessary in order to continue using the app. This model is common among the service-based applications and it’s usually the least favorite among the users.


Now that you found out the most successful monetization models you can develop your own strategy in order to have the return of investment as soon as possible. Be aware that you’re not limited to only one model, but you can combine and mix the appropriate models. But above all, it’s crucial to have a great understanding of how these models work and which one is the most appropriate for your application and the intended market. Just remember to focus on basics and grow from there.