Proven Strategies to make Money from Free Apps in 2021

 Free apps have always outnumbered the paid ones when it comes to sales and number of download in app or playstore. Mostly people ask how these make money. You must have asked the same question to yourself as well.

Didn’t get the right answer for it? Don’t worry this blog from team B2C is here to provide the perfect answer and strategies that can help you to rule the app market like king.

But before we move on to that let us tell you according Techcrunch “Apps boom has ended yet (and it won’t)”. Even according to a recent study the percentage of paid apps has decreased from 38% from 76%. The mobile app market has still potential to earn billion of dollars. So if you think free apps are not so profitable then let us tell you that 98% of worldwide revenues come from free apps on store. And you need to think more about monetization strategy.

Tech Crunch also claims that more than 90 percent of apps in the market are free and revenues from apps those who charge for download is expected to go down in upcoming years.

If you want to learn how to monetize your app without ads or how do apps make money then you are at the right place. But before on here are some differences between free and paid Apps that you must know.

Let’s start

Free Apps

Paid Apps

These obviously attract a more targeted audience which results in engagement and downloads.

These apps will have slightly lower downloads as you would be lose potential customers because some might not be willing to pay.

Multiple Monetization possibilities in the future

Limited monetization- yearly and monthly fees

They help in building brand awareness in the minds of the targeted audience.

Even with great reviews and ratings, people are less likely to purchase an app.

These are less expensive as these are not paid ones.

The development and designing of paid apps are generally high.

So you can see there are a lot of different ways to make money with app development but what are the options here? How do people make money from apps in these ways?

In nutshell, free apps make money by following these strategies discussed by our team of experts:

  • Advertising- It is most probably the most common and easiest way when it comes to earning money from your apps. And this is also done via a third-party ad network. Using ads to monetize the app and make money is quite simple.  An app owner just needs to display commercials inside their mobile application for opts or gets paid from third-party networks. 

There are mainly 4 types of ads that are displayed by app owners for monetization. But as an app owner, you need to find out whether the target users are finding these ads entertaining or they are blocking them. 

  1. Interstitial Ads- This type of advertisement is full-screen pops that are displayed at a particular time frame. Users can close these ads by a close button at the upper left or right corner. 
  2. Banner Ads- These are display ads displayed in different sizes and at the top or bottom parts of the app screen. These are often small or less obstructive that apps users to freely use the app. 
  3. In-app Videos- These ads are displayed automatically and generally used as a reward video in exchange for some in-app rewards. 
  • Subscriptions- Subscriptions can be used as a way of monetization strategy. App publishers can choose to offer free content in their apps for a limited amount of time and then you can charge a fee for a subscription that can allow users to access full content any disturbance or restriction. This type of strategy is used by video & audio streaming and online new services.
  • Selling Merchandise-  Another way to attract a target audience is by selling merchandise in your free mobile apps. Many e-commerce businesses build free versions to sell physical goods such as T-shirts, shoes, etc. 
  • In-app Purchases-  These are made directly within the free mobile apps and are usually quite a simple process. These are typically used to promote extra features for example Royale pass in Battleground India
  • Sponsorship- It is one of the less common monetization methods but it can be used in an efficient manner. In simple words, sponsorship in your mobile applications can be a powerful strategy if the app is developed in the right niche for a targeted audience and launch on the behalf of the company.

How to choose the best monetization method for your app?

  1. Understand the Type of an App- Before concluding the app monetization models, you need to understand the type of your app.Once you have a clear cut about the purpose, you will be able to select the app monetization method for your app in the app store. For example, the subscription model is for content and service apps. 
  2. Competitor Analysis- The competitor analysis is not just for features, functionalities, and design of the app. With the proper study of your alike competitors, you can easily find out the easy monetization of your app. Ask yourself certain questions about how your competitors are able to earn money? How strong their monetization models are? Is there any pain point that you can target?
  3. Know Your Target Audience- To successfully earn online revenue through app monetization strategies you need to study your target audience. What are they? How much they are willing to pay? In short, users should know the real value to make purchases. 

Final Words

With so many app monetization models discussed above to make money, it is important to note that each model has its own benefits and drawbacks to give while monetization of the app. However, trying these tactics and analyzing your competitor’s next move can help to make the most of your mobile app. 

So before you began with a reliable mobile app development company, you should take app structure and target audience into consideration while choosing a monetization strategy. 

Having any queries related to app monetization? Let’s discuss over a cup of coffee or tea as you like with our experts or reach out to us at

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