Excited for the launch of your new application? After painstaking hours of brainstorming, you’ve finally come up with a product you’re proud to call your own! However, just creating a new product is often only the first step. You need to ensure you can earn from it as well. Of course, you can always make your customers buy the app, however, that usually discourages most customers and you end up with zero downloads.

So, should you just make it free? Well, yes! Contrary to what people might believe, you can still make money from free apps.

Read ahead for our top 4 ways to make money with free apps:

In-app Purchases:

In-app purchases are an extremely clever way to make money from your app. If you let your customers buy the app, it only makes for a one-time payment. However, in-app purchases can be done over and over again. Studies show that in-app purchases are the best source to monetize your app.

The best part about in-app purchases is that they do not end up annoying the user as many ads do. Instead, users can choose to buy these features if they wish.

In-app Advertising:

Another popular method of monetizing your app is by placing advertisements. There can be a number of ways to do this. You can simply have a banner ad at the top or bottom of your app, like in most web pages. A common strategy that most gaming apps adopt is video advertisement. They play videos at the end of each level or require you to sit through video ads to gain rewards. This allows them to profit from video views.

A great example is Snapchat. They use their filters to advertise different products such as Taco bell etcetera. Another example is how Facebook and Instagram allow their users to create sponsored content.


The Fremium method is another quite intriguing and successful model. In this method, companies allow users to download the app for free and even use it for free. However, they offer you a different Premium plan that gives you additional benefits and digital goods. You can provide your users with basic services for free and then ask them to upgrade if they want true luxury!

While most users might still opt for the free version, some are bound to go for the premium version if you have set up the correct incentives.

Spotify uses the Freemium model quite efficiently as they 20 million paying customers out of a total of 75 million.


Some apps allow users to pay for daily, weekly or monthly subscriptions. The subscriptions can be for products, services or expert content. Although profits from subscriptions are not used as much in the industry, it can result in pretty impressive conversion rates.

You need to figure out what you are willing to give to your customers. An example of a great company is IPSY that offers small samples of makeup products each month for a small subscription fee.


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