How to make money from free app

How Does Free App Make Money?

As free apps have always out numbered the paid ones (in terms of profits and download numbers), most of the people often ask a common question that – how much money do apps make. How do free apps make money? Ever thought how to make money from mobile apps?

Once the app development process is completed, you’ve got to make a crucial decision before you make it available on the Apple App Store or Google Play Store.

Are you going to charge users to download it or will you make it available for free?

One of the reasons why so many people decide to charge for downloads is because they don’t know any other way to app. After spending so much money on development, they think the only way to get a return on the large investment is by charging a fee per download.

This is a common misconception.


Free apps can generate way more money than paid ones. There are lots of big players out there who are making lots of money from free Apps. You can achieve this similar success as well if you follow a few very important monetization strategies.


  • Understand the users

Before you do anything else, you’ve got to take the time to do some research.

  1. Who is using the app?
  2. What are they using it for?
  3. How are they using it?

Just make sure you start with the user before you jump ahead.

  • Understand the competition

Analyze the competition; you’ve got to come up with a differentiation strategy. Separate yourself from the crowd. Think about what you can do better than everyone else and make sure that’s the focal point of your marketing strategy. Properly branding your app will make it much easier for you to generate money, even if it’s available as a free download.

  • In-app purchases and advertisements

Now let’s talk about what actually make money.

There are two basic ways that free apps can make money.

  1. In-app purchases: An in-app purchase offers users extra features and additional options. These upgrades help increase their engagement and improve the user experience.
  2. Advertisements: Advertisements are pretty self explanatory. If you’ve got a

Website, you understand how ads work. It’s the same concept for your app.

You’ll get paid based on impressions or clicks.


So you can apply one or even both of these methods to your app.

  • The art of subtlety

The most crucial part of using free apps to make money is convincing the user that they

want to buy things to enhance their experience. You’ve got to create the illusion that they

need to spend money to get the most out of your app. In order to make this happen, the

free portions of your app need to be good, but not perfect. It’s a slippery slope. If you

make the free version amazing, the user won’t have any reason to spend extra money.

But if you withhold too many features in the free Version, users won’t experience enough

to realize that they want to do or see more. So you’ve got to find that middle ground.



The top apps on the market drastically throw off the averages. So don’t be discouraged if your app isn’t making money hand over fist right away. It takes time. Once you have this figured out, you can commit to building the app that’s right for you.


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