Developers have several choices on how they can monetize their apps. It all depends on the nature of the app, their business model and how they improve or are essential for the user’s experience.
Free Model
Free models don’t require anything to download. The way the developers generate revenue is through in-app ads that take up part of the app screen whenever you’re using it. The trick is to make the ad large enough to be noticeable but not too big to be considered intrusive.
Freemium
Freemium is similar to the free model app in that it’s free to download. As the user goes through the content, they can pay to unlock special features or get through a game faster. The model also works as a “try now, buy later” version that hooks the user in and force them to pay to get the rest of the content.
In-App Purchases
iOS apps in in-app purchase models are free, but specific content are locked until you decide to buy them using the app’s currency. With in-app purchases, developers can promise unlimited energy, special items or exclusive features.
Subscription Model
In a subscription-based model, users pay a monthly fee to access the app and get content on a regular basis. Examples include magazine, game subscriptions, music and others. Developers can set up a cloud billing solution to automate the billing process for a continuous revenue stream.
Paid Model
Developers can set a specific price for users to download their app. It works like an entry fee in that it’s a pay-once gateway to access current and future updates. As such, you must make your app attractive at first glance or offer something unique that’s worth the cost.
Sponsorship
Your app may work as a platform for other services or products. Once you’ve built up a base of users, you can get paid advertisements in the form of sponsorships. For example, a gaming or eSports news app can get sponsorships from companies such as EA, Razer, Nvidia and others.
