The app industry is one of the most popular and prominent in the world for its money-earning opportunities for developers. The app store is the best platform for developers to transform their products into a source of income. You can discover ways for potentially monetizing your app.

Web users worldwide are familiar and comfortable with other media platforms like YouTube, Facebook, Whatsapp, and others. So, as a new player in the app market, you have to attract the user’s time and attention.

Choosing the right monetization strategy can help you enhance your app’s user experience and scale up the app’s revenue.

Monetizing your app and their merits and demerits.

Several important factors are considered before arriving at a suitable app monetization model. Factors like user behavior, app category, and target audience can influence app monetization. 

Listed below are a few of the widely used app pricing techniques. You can choose the one that best suits your app and its functionality.

Light and premium version apps.

Among the two app versions you publish, the one available for free to the user is the light version. When the user has to pay a fee to access the app’s core feature, they can download or purchase a premium version. 

In-app purchases.

An app that uses this method will offer free and premium content by initially allowing users to use the app’s basic features and then luring the user to purchase the advanced features for a one-time payment. The merits and demerits are:

  • The app’s core feature attracts more users and increases conversion.
  • This method allows you to use it alongside other monetization methods like in-app advertising or a fee for a premium app.
  • But only a meager percentage of users in app stores go for in-app purchases, so revenue prediction becomes difficult.
  • You will have to include a transparent refund process for users who make accidental purchases.
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In-app subscriptions.

App subscriptions can be monthly, once in three or six months, or yearly. The users get access to advanced app content that is otherwise blocked. The merits and demerits are:

  • Gives a higher LTV (lifetime value) because users are likely to use the app for many months.
  • It is the best way to test the app’s premium features and increase the conversion into paying customers.
  • But user retention becomes challenging unless you provide top-notch features and valuable app content.

In this method, the users have to pay before downloading. Most users dislike making an upfront payment, so this approach is suitable for popular apps. 

The merits and demerits are:

  • Revenue calculation is straightforward because you know how much each download will fetch you.
  • The chances of securing good reviews and ratings are high because the app is ad-free, and the core features are unlocked.
  • Competition becomes intense if similar apps offer the same features for free.
  • Implementing the other monetization methods becomes impossible, which may result in an increased churn rate.

App advertising.

Several advertising channels allow you to promote ads and make money for every click or impression. Choose the advertising channel that reaches potential users easily, suits your app category, and is most popular among the target users. 

The merits and demerits are:

  • User acquisition and conversion will improve effectively.
  • You can choose the best one from the several formats and providers available.
  • You can also combine in-app advertising with other monetization methods for the app’s success.
  • But at times, intrusive ads may scare away the app users.
  • You will have to design and remake the apps to suit the interests of different user categories.
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Reward-based app content.

This is a type of ad-based monetization strategy in which users are offered an in-app return for completing an action, like downloading other apps or watching a video.


To choose the best strategy for monetizing your app, it is essential:

  • To monitor your competitor’s monetization methods.
  • To understand your target audience
  • To customize for the local market. 

Study and choose the one that will work best in the Apple app store and Google play, and also suits your app category.

Here’s our aso monitor guide to help you with key techniques.