Monetization Made Simple: Building an App Fit for Profitability.

Monetization made simple for app
Monitization made simple


Coming up with an app idea is just part of the equation. Businesses look forward to turning the idea into reality and generating revenue from it. That is where understanding the monetization potential of the app comes into play. With the right monetization strategy, startups can make an app their primary source of income.

The global revenue from mobile apps is predicted to reach $600,000 by 2025, according to Statista. There is a lot of money to be made here.

But to tap into the potential of a mobile app, monetization is an essential part of the process. After all, generating revenue is the ultimate goal of most startups. And that is why we have created this blog.

From various revenue models to launch strategy, we have got everything covered in this blog.

Understanding Different Monetization Models

When it comes to monetizing your app, you have multiple revenue models to play with. Let us have a look at them.

In-App Purchases

This model is ideal for enterprises that have some products or services to sell. Here, payment gateways are integrated into the app, and users will be able to make purchases through them. As per Allied Market Research Reports, the global in-app purchasing market size is projected to reach $340.76 billion by 2027. 

To tap into this potential, skilled developers are required to ensure secure payment gateway integration and snappy delivery times.

Pros Of In-App PurchasesCons Of In-App Purchases
Stable Source Of RevenueYou need a large user base to receive decent profits.
Users have more liberty in experiencing your app 
Increased brand loyalty due to reduced “Buyer’s Remorse.” 
Ensure engagement and regular, habitual use 
Collect a lot of data 

A well-known example of an app using this model is Skillshare. It is fast, secure, and scalable.


For startups offering long-term services, creating subscription models is just perfect. The app can have multiple models on a yearly, quarterly, and monthly basis. This allows users to select the option that suits their wallet.

Pros Of The Subscription ModelCons Of The Subscription Model
Small entry priceYou have to provide frequent updates
Users can try your service for a limited timeA free trial period is required
Reliable income as users will keep returning 
Users are engaged due to constant usage 

GSF is one of our apps that runs on a subscription model. Users can purchase a monthly subscription to attend live fitness classes.

In-App Advertisements

For startups that do not have any product or service to sell, advertisements are their next best resource. Here, users will see ads while using the apps, and the startup will receive income based on the number of impressions and clicks the ads generate. By the end of 2023, mobile ad spend is expected to reach $446.14 billion, according to Statista. So, this is a viable option, especially for video game applications.

Pros Of In-App AdvertisingCons Of In-App Advertising
Users do not have to spend a single pennyCan hinder the app experience
Guaranteed revenue generation 
No way to block your ads 

Videogame apps like Brain Test are perfect examples of in-app ad integrations.

Freemium Model

Charging money upfront is not always the best strategy. Sometimes giving a demo of the app’s features can encourage users to purchase the app. That is what the freemium model is about. Here, businesses can provide certain features for free and have pricing plans to unlock the rest of the features. 

Pros Of The Freemium ModelCons Of The Freemium Model
Users can experience the app before purchasingMost users may not pay leading to increased expenses on your side
You can significantly expand your user base 
There is no usage barrier 

Identifying the Right Monetization Model for Your App

As is obvious, all of these revenue models come with their own pros and cons. A mobile app startup needs to weigh each of these options to understand which one is best for their app. Here are some factors to consider that have to be considered when deciding the monetization strategy.

a: Target Audience

When it comes to targeting children or teenagers, going for in-app ads will be the better choice, as they will not have enough finances to pay for your app. Similarly, when targeting employees or workers, this strategy will not work, as constant ad popups are sure to get on their nerves.

b: App Category

Having in-app purchases for an eCommerce application goes hand in hand. A subscription model? Not so much. Consider the app category before deciding on the monetization model.

c: Your Finances

Choosing the freemium model means having to sustain many free users. For businesses that do not have sufficient funds or do not want to spend on free users, the freemium model is not the right choice. The budget should be considered before choosing the monetization model.

Designing Your App with Monetization in Mind

Once the revenue model is decided, a mobile app startup has to ensure that the app design goes hand in hand with it. For example, if you are going for in-app ads, you need to ensure that your app has enough space to display ads without affecting the user experience. Dedicated areas have to be created for ad placement that do not take away from the overall aesthetic of the app.

Create some test cases for your app. Do A & B testing on which positions work the best for ad placements. 

This is where having a monetization strategy before development comes in handy. The app’s design and user experience can be aligned with it, ensuring maximum profitability. For in-app purchases or subscription models, it is necessary to create catchy and compelling payment pages. Description pages regarding services or products are also mandatory.

For some inspiration, have a look at our apps Sattva connect, Pi Advisors, and LocOff. 

Launching and Promoting Your App for Maximum Profitability

Once the monetization strategy is ready, it is time to work on the launch strategy. Let us be real. If there is no buzz around the app, it will most likely be an abandoned haunted house. We are here to help out.

a: Unleash The Power Of Social Media

What is the best part about social media? It provides a lot of organic reach. Creating some reels or short videos can result in more reach than paid advertisements. Also, paid ads will not hurt either.

b: Influencer Marketing

For startups that have the finances, influencer marketing can work wonders. Having a strong app ambassador will help create a personality for the app.

c: Email Marketing

Emails provide the option to reach out to the target audience. There is no need to waste time and resources on irrelevant people.

A promotion strategy is never-ending. Enterprises have to keep promoting their app forever to maximize profitability. 


That’s a wrap, folks. Choosing the right monetization strategy is going to be game-changing for a mobile app. Once the strategy is in place, the next step is to create an app design that is in concert with it. And that is exactly why it is necessary to start thinking about monetization early in the app development process.

We are here to guide you with just that. With 20+ years of experience, you know you are getting the best mobile app development agency.

Without further ado, hit that contact button and let us get on the phone to discuss about integrating monetization in your app.

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