How To Create an App For Free And Make Money?

The process of generating revenue from a mobile app is called mobile app monetization. Users are increasingly reluctant to pay for any application, given the increase in the number of free mobile apps due to growing technology. So, app owners and developers need to think of alternative methods of generating revenue. And hence, a common question is, how to make money creating apps for Android?

In this article, we will focus on the different revenue models, simple app ideas that make money and more!

How To Create an App For Free And Make Money?

1. Use A Subscription Model

By using this model as weekly, monthly, or annual fees for a particular service, revenues can be generated. Cloud services, audio and video content providers like Spotify, and digital news portals typically use this model. 

Here the purchasers get access to content through a membership. When you sell online, you can reach more people at any time and from any location. Membership is an extra feature that permits the users to look for and buy what they like. Here, you need to offer them something that is worth spending money on. Also, there should be enough choices for them to be attracted to your services.

2. Run Advertisements 

This is the most common method and answer to how to earn money by making apps. You can decide whether you want advertisements to appear on your app once you have created it and are ready to publish it.

You get paid as the app’s owner based on the number of impressions or clicks on your ads and the type of ads you offer. If you let people put up a video ad, you’ll get paid much more than if you put up a banner ad. Not only is the type of advertisement important, but so is the duration of the video advertisement and the frequency with which it will be shown.

3. Offer In-App Purchases

It is one of the more simple app ideas that make money, with which users can unlock additional features or levels by purchasing upgrades under this revenue model. So, an application can offer any additional reward, any sort of premium goodies, virtual cash for the game, or an additional level.

An app’s owner can offer in-app purchases that are either consumables like virtual currency or non-consumables like advanced levels, maps, or other virtual goods. This methodology depends on the freemium model, where you would offer your application free of charge, however offering the superior versions for an update. 

4. Rely On Referral Marketing 

This includes advancing an outsider item or service as a method for upgrading income valuable open doors. Based on the number of clicks or installs, app owners can sell or promote the products or services of affiliates. Pop-up ads can be used to promote an app or a product for this purpose. Owners utilize a variety of referral marketing models in their development.

5. Crowdfunding

One of the ways that have shown its effectiveness for generating money on apps is crowdfunding. The most widely used crowdfunding platforms for making money from free apps are CrowdFunder, AppsFunder and so on.

However, you should also be aware that these crowdfunding platforms have thousands of other applications, making it difficult to attract attention to yours. In any case, you can do it by offering genuine benefits and by forming a USP of your app.

6. E-Commerce 

If you too want to make an app for free and make money out of it, then using the e-commerce model is a trusted way. The market for e-commerce is booming right now, and more people are buying things online every day. Today most actual things are sold through free applications. 

This adaptation model turns out useful for all verticals and assists advertisers with creating simple gains without having to put money in. Additionally, the partnerships and affiliate programs that generate referral revenue can be added into this model.

7. Choosing Pay Per Download

In contrast to the subscription model, this popular free app monetization model provides access to all of an app’s functionalities and features for a one-time fee that is charged at the time of download.

Even though this model ties every profit and revenue to the number of downloads, many app developers might not choose it first. The reason for this is that users might be reluctant to pay for the app right away without first downloading a trial version.

One approach around it is to have a flawless advertising technique with extraordinary application posting, press, and surveys to advance the application’s elements and values.

Also Read About – How Much Does It Cost To Create an App For a Small Business

Factors To Choose A Monetization Method

  • Target Audience:
    Think of your clients and what they might want to pay for. While client choices change, what stays the same is that clients should be shown worth making a buy. So even if you provide a free download, you must demonstrate value through the app’s utility. Knowing the target audience helps in understanding which model would they prefer more. 
  • Competition:
    If you set a particular cost after choosing a monetization method, it’d work only if your competition is not offering better results, charging more or both. So, you need to know who your competition is, and what their strategy is. While setting costs for applications, memberships, or in-app buys, make sure to consider cost patterns, your audiences’ pocket and other factors.
  • App Idea:
    Simple app ideas that make money are the best. But, it’s important to be unique enough to attract users to your app. E-Commerce is one example, but if your app has a different foundation, it should stand out to get attention. In any case, being better than your competitors is the best way to survive. The app idea also affects the type of model you’re choosing, because not all models work for all types of apps.

How Much Money Do Free Apps Make?

Other than knowing how to earn money by making an app that is free, you would also want to know the figures. The freemium model is used by the majority of free apps that can be downloaded from Appstore and Google Play. 

It was also found that 91.9 percent of apps on the Apple App Store and 96.1 percent of those on Google Play are free. On the other hand, the average revenue generated by an app download ranges from $0.60 to $1.20. Furthermore, around 70% of applications contain promotions that produce installments per show, per click or per introduction.

According to recent data, users spent 6 billion US dollars on the most popular subscription apps through the App Store, whereas they spent 2.5 billion US dollars on apps through the Google Play Store. While the numbers and data keep changing, this gives some idea.


A mobile app can generate revenue through a variety of monetization strategies that take advantage of a user base, such as freemium models, in-app purchases, and in-app advertising. There are numerous opportunities to profit from making free mobile apps. You can choose the ideal monetization model for your app idea by researching platform differences, revenue models, and the most popular app categories, among other ways. So now, you can make an app for free and make money from it easily!

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