Free Apps Make Money, Realy?

It may seem counterintuitive, but in a market where most users expect their applications to be free, how the creator of the application closing costs and their benefits after 4-6 months the average time it takes to ship an application?


how do free apps make money without ads

In-app purchases and advertising enables application creators to make money from their free apps. But to make money from free apps, you have to do more than just stick to the premium paid for options or ad in your application. Smart app monetization strategy comes from understanding what revenue generating options available, familiarizing yourself with the market and competition, and increase your knowledge about your audience and business to fulfill the right to be paid the user experience. Here’s what you need to know to make money from free apps you.





An application that utilizes in-app purchases offer a free version of the application that includes additional, optional, paid features. This is often seen in gaming applications where users are encouraged to buy new levels, gear and luggage. types of purchases encourage repeat purchases because they are exhausted, like buying an extra life in Candy Crush Saga.


In-app purchases are also found outside world in applications such as mobile games Calcbot, 1Password, or even Apple Music. This second category in-app purchase lets you continue to use what you buy is not as consumer goods which do not remain as they are accustomed to, such as an extra life in Candy Crush Saga.


Free application that has a component that is paid to provide access to additional features or feature set referred to as “freemium.” There are different ways to approach the freemium app. You can offer a free version of your app by reducing features such as the Calcbot (for example, users can buy the “convert” feature) or even let users try out certain features initially and then locked it behind purchases in applications such as the Apple Music. the latter approach requires more development work but because there is no solution to the test right in the app store.


iOS and Android apps also offer a large selection of auto-renewable subscription in-app purchase. This subscription allows applications to provide content or features on a predetermined time. A good example is our customers FamilySignal, which uses auto-renewable subscriptions on iOS for apps that help families better stay in touch with each other. recurring subscription is particularly useful for applications that have the ongoing costs associated with them, such as maintaining servers or creating new content.o important revenue-focused metrics




In-app ads come in a variety of size, position and placement in mobile applications. The amount of income that you generate from ads in the application are based on the traditional advertising model. Different ads can pay for click-throughs, impressions, the user states is derived from, and ad format, with video tend to be worth more than static ads.


No ad serving network for mobile phones that offers a variety of models and formats in in-app advertising strategy and metrics to track how your ad appears. Hongkiat walk through some big network here, including Google AdMob and Millennial Media.

Focus on User Growth


No matter if your free app relies on in-app purchases or advertisements in applications, only a small percentage of users you will help you generate revenue from your application. That is why the free app you need to grow, a large user base actively so that a small percentage of this actually amounts to a significant income.



It’s important to think about metrics such as tariff free-to-pay conversion, customer lifetime value, churn rates (for a recurring subscription), and comparable items. Andreesen Horowitz recently published guidance for revenue-focused metrics important to help businesses, especially beginners, to identify the most significant metrics to track the health of a company. And John Egan, engineer growth in Pinterest, shows what metrics they look like in a post earlier this year. Without a sharp eye on this metric, you will be ill-equipped to grow your application to the point where the minority of users actually generate revenue.