How do free Apps make Money?

Sometimes it looks like some apps provide a lot of value to our daily lives that too for free but how do they manage to run themselves? How do they make money? There are a lot of such questions that revolve around people’s minds. Well, let’s see below what exactly is behind the process of app monetization. In terms of downloads, free applications of course have an upper hand than the paid ones. The main thing here is how they capitalize themselves on those new users. There are lots of advantages of creating these free apps let’s look at some of the ways they monetize.


You can also place some Sponsorship within the application. This is a very powerful strategy for app monetization. Anyone can create the right niche app for users and then launch it on behalf of some other company. But there are some hurdles. I also like to find investors with the same target audience and like our idea of design which also matches their brand’s ideology. Also, this strategy can be very profitable for developers. They can expand their audience and promote their app because most sponsors already have high website traffic and their customers are also loyal.

Email Marketing

Though Email Marketing is indeed a comparatively old technique, it is a very powerful tool for monetizing apps. To make this strategy work, you can simply ask for the users email during sign-in. And that’s how you get a possibility to regularly reach them with email notifications. This usefulness of Email marketing is one of the most effective strategies. Moreover, asking for the E-mail is also not that hard; you can simply ask users for their email address with a pop-up box for some free features.

In-app purchases

With the In-app purchase model, you can sell a variety of items directly from your app like some bonuses, some premium content, app currency Etc. Most of the leading apps use this in-app purchase model to generate an extra stream of earnings. It is mostly used by developers in the form of digital money which is used by users to purchase some kind of in-app content. Also almost half of the apps provide more than one virtual currency.


The idea here is to create free apps with some restricted but interesting content or features which are available for a limited time free of cost. After some time the user will have to pay some subscription fee to get complete access. This model has been proven very effective for cloud services, video and audio streaming Etc

Collecting and Selling Data

This method is not a widespread or an ethical way of app monetization. However, collecting and selling personal data is still one of the effective approaches to earn a profit. There are a lot of companies that first offer free mobile apps and then they collect and sell the databases to third parties. The information sometimes contains the user’s email address, preferences, and social media accounts.


Mobile advertising is at the top of the most profitable app monetization system. To use ads to monetize the app is very simple. All you have to do is to advertise the app and you get paid from the ad networks. This is also the way by which free games make money. From smallest to largest mobile providers use these kinds of in-app ads as the biggest source of in-app revenue. You get paid every time the ad is displayed and every time someone clicks on that ad, and also whenever a user installs the advertised app.

Hence these are some common methods of earning money by free apps. If you have an idea and you want to get into this business you can contact any mobile app development company. They will create a desired mobile app for you in a few days. So hurry up and start making money online today with mobile apps.

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