How to Make Money through Mobile Apps App Development
This guide will explore the top strategies for app monetization and deliver instances to demonstrate every method. Usually, apps generate revenue via the following avenues:
- In-app purchases
- In-app advertisements
- Sponsorships
- Affiliate marketing
If you’re not selling a product, service, or subscription, your key revenue streams will possibly derive from ads or affiliate programs. Even if your app is free to download, you can still get turnover using these monetization methods.
Keep reading to know how to make money through mobile apps.
The Best App Monetization Methods
According to EMARKETER, the average smartphone user occupies 3 hours and 10 minutes every day using their mobile. Approximately, the 2 hours and 51 minutes of this time is utilized on apps (apps account for roughly 90% of smartphone usage).
SocialMediaToday’s research shows that there are 80+ apps connected on the average smartphone. But with that said, people aren’t utilizing all of those apps.
This proves that people love using apps, which gives us a great opportunity. The key here is to find out how to pick out the right money-making apps that will maximize user interest and ultimately get downloads. But downloads alone do not provide money. App development for money apps is a costly process and includes a few hidden development costs as well.
Before investing all your money into a new app idea, you have got to ensure that it will surely generate a profit for you.
App Monetization Models: In-App Purchases vs. a Mobile Site
If you have a business, probably your company has a website.
Preferably, that website should be mobile-friendly. If it isn’t, you’re possibly losing potential customers. With a huge number of people browsing and shopping over their phones, making sure your site works well on mobile must be a top priority.
Now, let’s talk about the customer experience and how it impacts their buying decisions, which is crucial when you’re thinking about how to make money using your app.
So, what do you think? Do users choose to shop over a mobile website or using a mobile app?
App surely wins, and here’s why:
You can see the most common response from the respondents is convenience. The other top responses are also aligned with convenience and improved user satisfaction.
Your customers look for everything quickly.
For instance, if your website is not optimized for mobile devices, speed can be one of the concerns.
But speed is not the only thing that gets highlighted when people are navigating through your app. Think of your app like any other business. The easiest way to make money in your business is by keeping the customers satisfied and keeping them coming back. This is the reason you must focus on turning your website into a proper app.
In addition to convenience and speed, the checkout process over a mobile purchase is also much easier.
In-app purchases made by mobile gets charged directly from the customer’s account linked with the app stores (either Google Play Store or Apple App Store account). It is an easier way to pay because customers are not required to add their account details to complete in-app purchases every time.
Free apps make it easier for customers to buy and pay. Just one click and done.
Now, a question arises about how it is compared to a mobile site.
Since we have already discussed that speed is a factor, what if your mobile site is already running fast?
Then, what else than speed can slow down the customers?
Let’s suppose users do not have their cards or accounts linked to your mobile site, so they will have to add all of their details.
It’s a long process and more of a headache for users. Also, typing all the details on the small screen of mobiles risks errors that can slow down things even more.
It does not mean that you should not have a checkout page or have ways to generate money via card purchases. But in-app purchases are MUCH better. Moreover, the platform on which you launch your app also matters.
iOS vs. Android In-App Purchases
Here are the differences between iOS and Android purchases. iOS platforms have more than twice as many purchases per user on average as Android platforms. But it doesn’t mean that you have to pick one over the other.
While iOS might have a high number for the average purchase, Android rules when the total number of users are concerned. As of now, in 2025, the revenue in the Smartphones market worldwide is anticipated to reach an overwhelming US$0.5tn, as per Statista.
App Monetization Strategy for Physical Products
Since this topic has been discussed briefly earlier in the novel; therefore, let’s discuss it in detail. The successful selling of consumable products via the app needs to think like a mobile shopper. As of now, OuterBox reports that at least 79% of smartphone users have made a purchase online through their mobile devices in the past 6 months.
You are not asked to be the next amazon. Becoming the most popular company is not the only way to drive sales and make money. You just need to focus on customer acquisition and customer retention altogether, which leads to success.
Make a profile that saves user details securely, allowing users to directly start shopping instead of adding their details every time they shop. Use an easy navigation screen so that customers can easily search for and scroll over the items they are looking for.
Provide a product’s detailed description along with a large and clear photo or videos. Further allow them to add it to the cart with just one click if they like it and want to buy it. Allow them to checkout with just one simple click from the cart.
Avoid adding long processes to complete the purchase, as it can slow down the user’s interest.
Also, it sends users notifications about daily deals and discounted items to promote increased purchases.
At present, if you are selling products on your website and mobile site, you can generate more revenue by building a mobile app successfully.
Monetization Methods for Free Apps vs. Paid Apps (Free App Monetization Strategy)
Another aspect to consider is whether or not you are going to provide your app to the users for free.
Surely, you will generate a higher revenue over every download. It might seem like a good idea to get some up front profits, but you may turn people away if they would be asked to pay.
As per Statista’s report, in March 2024, around 97% of Android apps were free, with the remaining 3% asking for payment.
You may be surprised to know that most of the revenue earned over mobile apps comes from the free apps using app monetization strategies such as, in-app purchases, which is equal to 98% of app revenue globally. This vast amount of free apps available on the Play Store indicates a major shift towards the freemium model.
When determining whether to release your app as free or paid, the monetization strategy will play a crucial part in your decision. While paid apps deliver higher revenue per download, free apps rule the market and can still generate substantial income using different strategies. Here’s a breakdown of monetization methods for free vs. paid apps, with an emphasis on how free apps can still make money.
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Free App Monetization Strategies
Advertising
One of the most common and upfront ways to generate revenue from free apps is advertising. By exhibiting ads in your app, you can make money without charging users upfront. Well-known ad types involve:
Interstitial Ads
Full-screen ads seem to be at natural transition points in the app.
Banner Ads
Small ads are shown at the top or bottom of the screen.
Video Ads
Users might be incentivized to watch a video ad in exchange for rewards or premium features.
Native Ads
Ads that mix into the app content to create a smooth user experience.
Ad revenue is usually based on CPM (Cost per Thousand Impressions), CPC (Cost per Click), or CPA (Cost per Action), enabling you to earn based on user interaction with the ads.
Freemium Model
One of the most common ways to make money from free apps is the freemium model, where you offer the app for free but with restrictions on features. Users can access basic functionality but can upgrade to a premium version for improved features. This model works wonders for apps in areas such as gaming, productivity, and fitness. For instance, a free app might display ads, while the paid version excludes ads and offers extra features like additional content or improved functionality.
Premium Features
Users might pay for additional content or competencies, including extra levels in a game, advanced analytics in a business app, or premium filters in a photo-editing app.
Ad-Free Version
Offering an upgraded version with no ads improves user experience, making it a striking offer for users looking for an endless experience.
Subscription Model
Subscriptions are a great way to generate recurring revenue from free apps. By providing users the option to subscribe to premium features, you can ensure consistent income over time. A subscription model usually offers different levels of service, such as:
Basic Free Version
Restricted access to app features.
Paid Premium Subscription
Reveals all or maximum features, offering an ad-free experience, priority support, or exclusive content.
Subscriptions reassure customer loyalty, as users are more inclined to stay connected with the app to get the most out of their subscriptions. Also, it is ideal for apps offering ongoing services, such as entertainment, news, or fitness.
Referral Marketing
Referral marketing enables you to promote third-party products or services within your app and earn money from these references. You can do this via associated links, where you earn a commission every time a user clicks on the ad or completes an action, such as buying a product or signing up for a service.
Common referral marketing models include:
Cost Per Acquisition (CPA)
You earn money when a user performs a particular action, such as buying something or signing up.
Cost Per Click (CPC)
You get paid based on the number of clicks created by users.
Cost Per Install (CPI)
You earn money every time your app drives the installation of another app.
Referral programs can be more profitable compared to traditional ads, specifically if you partner with high-paying services applicable to your app’s audience.
In-App Purchases
In-app purchases (IAP) are another widespread way to monetize a free app. This model enables users to download the app without any cost and pay for virtual goods or services within the app. It’s broadly used in gaming apps, where users buy things such as extra lives, special characters, or in-game currency. However, non-gaming apps can also get advantage from in-app purchases, providing users access to premium content, features, or upgrades for a fee.
In-app purchases can be presented in a one-time or recurring payment format, enabling for flexibility in monetization. This strategy assists creating a more pleasing app experience by providing noticeable benefits to users ready to make purchases.
Sponsorships
If your app has a substantial user base, you can appeal to sponsors who want to reach your audience. Sponsorship deals usually contain projecting branding or advertisements from the sponsor in exchange for a fee. You can incorporate sponsored content right into your app experience or offer sponsors possibilities for employment within projecting parts of the app, i.e., during onboarding or in-app events.
Sponsors might pay a regular fee or a performance-based fee, relying on the agreement.
Paid App Monetization Strategies
For paid apps, the monetization model is straightforward: users pay for the primary download. However, the challenge lies in keeping the users and inspiring them to continue using the app after purchase. To make paid apps more profitable, consider executing the following strategies:
In-App Purchases
Even if users pay upfront for the app, you can still provide additional premium content or features as in-app purchases. This creates a possibility for higher revenue while keeping user loyalty.
Subscription Services
For apps providing services such as cloud storage, media streaming, or news feeds, you can execute a subscription model for ongoing revenue. Paid apps with subscription services can still create steady income by providing new or exclusive content frequently.
One-Time Paid Features
Offering one-time paid upgrades or features for a premium experience (e.g., additional levels, customization options, or support services) can assist with maximum revenue from existing users.
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9 of the Best Money-Making Apps of 2025
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Ibotta
This app allows you to earn cash back on in-store and online purchases at over 2000 supported retailers. Initially for groceries, it has included clothing, entertainment and eating out, pet supplies and other classes. Offers can be retailer as well as product specific. For others you are asked to complete an extra task which includes watching a video or taking a poll.
There are three potential ways to earn cash back in stores. Add offers and submit your receipt (within 7 days period) in the app after your shopping trip, add your retailer loyalty accounts or buy a retailer gift card via the Ibotta app. For online purchases, you buy through the app or with the Ibotta browser extension on your computer. For online purchases, you shop over the app or use the Ibotta browser extension on your computer.
Payments
PayPal, digital gift card, or directly to a bank account.
Pros
You’ll get cash back on in-store purchases fast, usually within a day. Ibotta also provides a welcome bonus for the new users, a number of payment methods and referral bonuses as well.
Cons
Money making can be a slow process. You must have at least $20 in cash back to redeem your earnings as few gift cards need at least $25 in earnings. For online shopping, the pending period for earning the cash back depends on the retailer. Ibotta app charges an account maintenance fee for inactive (non-active for 180 days) or deactivated accounts. The fee is then excluded from your balance, not your linked bank account.
Download
Android, iOS.
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Rakuten
Rakuten, once known as Ebates, offers shoppers cash back on purchases from popular retailers, food delivery services, and restaurants. Users are also allowed to earn cash back on travel, gift cards, and more. It’s upfront. Create an account, tap on the store where you want to shop in the app, and then proceed with the transaction over the portal. You can also connect a credit or debit card to your Rakuten account to earn cash back in-store as long as you activate the deal using the app first. Rakuten credits the cashback to your account after the retailer approves the purchase.
Payments
PayPal or Big Fat Check.
Pros
Thousands of stores and purchases are suitable for cash back, so you’ll possibly find deals where you already make purchases. New users can earn a welcome bonus after their first eligible purchase. You can also earn welcome and referral bonuses. You can make a difference through your cashback earnings by donating a portion to nonprofit partners.
Cons
As with most cash back services, you are required to spend money to get money. You won’t be able to see your earnings right away, either. Rakuten sends out payments every three months on the company’s payment schedule, and you are required to reach the minimum cashback balance to get paid. In contrast to other apps like Ibotta, you have to remember to initiate your purchase using the app first. If you mistakenly make the purchase exclusive of the app, you can earn credit subsequently.
Download
Android, iOS.
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Swagbucks
A cashback and rewards app that allows you to earn points known as “SB” by shopping online, taking surveys, watching videos, playing games, or fulfilling tasks using the Swagbucks app. You can redeem those points for gift cards and prepaid Visa cards or get cash back to your PayPal account. The total points awarded can differ by task. For instance, surveys are usually worth about 40 to 200 SB points each. The minimum required balance to redeem points relies on the payout option you select, but few gift cards are accessible for just 300 SB.
Payment can be given through E-gift card, prepaid visa card or PayPal. You can also redeem SB for Bitcoin through the Cryptovoucher Gift Card options.
Pros
Swagbucks provides several ways to earn rewards with no waiting period to cash in. Payments normally arrive within 10 business days after redemption. You could also get a $10 bonus with a qualifying $25 purchase when you join.
Cons
It does not pay much, and one SB is worth about a cent. With several tasks valued at pennies, it can take an extended period of time and effort to make a considerable amount of money. Also, you won’t succeed in every survey or task, even though users can make up to 5 SB every day if they are prohibited. Users normally report getting expelled from the surveys in the middle of taking them. This can be because of the demographics or dishonest or unpredictable responses, as per Swagbucks.
Download
Android, iOS.
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Fiverr
A freelancing marketplace featuring gigs in over 200 categories, including musician animation and video. Start by setting up an account, then make a profile as a “seller,” pointing out your skills. Present the gig you are offering, including all the pricing and a description of your service. Pricing ranges from $5 to $995. Clients, known as “buyers,” are allowed to click through and place orders. You’ll get paid once the job is completed. Fiverr assigns sellers based on performance levels. As you move up every level, you get to sell more “extras,” such as paid consultations.
Payment
PayPal, direct to a bank account, Payoneer or credit to a Fiverr Revenue Card (a prepaid card). Smallest withdrawal amounts differ, and your payment processor might charge a withdrawal fee, relying on which option you select.
Pros
You don’t have to be concerned about tracking down buyers because they come to you. You can also earn tips. Fiverr also claims its adaptability, enabling sellers to finish gigs in their own time or around their 9-5 jobs.
Cons
Fiverr takes 20% of your earnings for each gig, counting tips, and there’s a standard 14-day waiting period to extract money after completing an order (top-tier sellers wait seven days for funds to resolve).
Download
Android, iOS.
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Upwork
A platform that connects freelancers to gigs in writing, marketing, design, and other categories is available in the marketplace. First, you’ll set up a profile. It must incorporate details, including the field you are interested in and your qualifications, accessibility, and preferred rates. Then, you are allowed to submit proposals. Clients will then review them and offer projects if you seem like a right fit.
You start every month with a set number of “connects,” which are similar to credits enabling you to not pay a fee when clients contact you. You can even get paid hourly or per-project.
Payment
Direct to US Bank, your bank account, wire transfer, PayPal, instant transfer, and Payoneer. Charges are asked for a few payment options, so make sure to check Upwork for more information.
Pros
It helps take the work out of seeking out clients, building relationships and getting paid. This service also offers the adaptability to set your chosen rate and schedule.
Cons
The app is free to download, but starting contact with a huge number of clients requires money. Users also charge service fees. Upwork cuts 10% of your earnings according to how much you have billed a client. The more you make, the more you get to keep. However, you won’t get paid until 10 days after the billing period finishes. Since, on the Upwork platform, you are directly competing with other freelancers, clients can select those with the lowest rates.
Download
Android, iOS.
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OfferUp
Combined with competitor Letgo in 2020, works as a local marketplace that you can use to sell your stuff. If you seek a wider audience reach, OfferUp also enables you to ship anywhere in the US except Alaska, Hawaii, and Arkansas. Set up an account and take a picture of the stuff you wish to sell. Once you add a title, price, and description, you can post your listing and chat with buyers right away via the app. Then, you’ll ship to or schedule a meeting with the buyer.
Payment
When selling locally, OfferUp recommends sellers take cash from buyers and stay clear of accepting payments by check, cashier’s check or using other apps. For shipments, sellers can set up deposits to a debit card or bank account.
Pros
List creation is simple and quick, and you’ll get paid straight away when you make a cash sale. You can also look at potential buyer’s reviews and ratings to get a knowledge about how reliable they are earlier. If you ship your item, the buyer pays the cost, and OfferUp offers the label.
Cons
You’re accountable for meeting local buyers in person and managing transactions. Sellers are required to pay a 12.9% service fee, or a minimum of $1.99, for shipments. To be successful, you have to print the shipping labels and male items to buyers for which you’ll possibly need to invest in a printer.
Download
Android, iOS.
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Poshmark
The Poshmark app is personalized for selling apparel, accessories, and even home decor. Sign up, take or upload photos of your item, fill out a description, price it, and share the listing. You can also feature items in the app’s “Posh Parties,” which are virtual shopping events adjusted around specific brands, classes, and themes. Poshmark emails you a prepaid and pre-addressed shipping label after a purchase is made. Then, you send the package through USPS.
Payment
PayPal, Check, Venmo, Instant Transfer, or direct deposit to a bank account.
Pros
Poshmark simplifies the whole process, from selling to shipping. Also, for making a sale you don’t have to meet with strangers. The company will provide insurance for the lost packages and manage issues between you and the buyer. Getting paid is comparatively fast, too; Poshmark issues the money within three days of the buyer getting the order.
Cons
You’ll pay a fee for selling via Poshmark. The company takes a $2.95 commission for sales under $15 and a 20% commission for sales of $15 or above.
Download
Android, iOS.
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Premise
A task-based app offering rewards to users who finish simple tasks. You get paid to share local insights to assist businesses and communities. Some options involve sharing details and photos of what’s trendy in your area, such as traffic jams and local events, or taking surveys. You make an account by signing up using an email address. Once enrolled, you can take a look at the app for activities to complete and get the cash. You can also set notifications to accept the latest tasks offered.
Payment
PayPal, Bitcoin, or Payoneer.
Pros
The app markets itself as a community-first service where your view can help build your community. Tasks can be linked with public service bodies such as libraries, hospitals, stores, and governance-linked activities.
Cons
Depending on where you reside, there may be restrictive tasks available. Some users state the app itself is also complex to use, making it challenging to locate the items or tasks in a community.
Download
Android, iOS.
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Upside
A platform providing cash back for gas, grocery, and restaurant purchases. Usually, Upside says users earn 8% cash back on groceries and dining, and there are an additional 50,000 retailers and restaurants that take part. Once you sign up, you claim offers via the app and pay for your purchase as you typically would with a credit or debit card. You’ll either check in on the app or scan your receipt to earn your prize. You can cash out anytime.
Payment
PayPal, gift cards, or deposit to your bank account.
Pros
Upside emphasizes on day-to-day essential purchases that many consumers might already be making. As per the app, recurrent users earn more than $300 annually by adding Upside to their regular routine.
Cons
As per several user’s reviews, the app doesn’t always work as it should. To be successful, you need to be patient to work over technical issues and the receipt uploading process, which some users say isn’t worth the time investment for a small payout.
Download
Android, iOS.
Conclusion
In 2025, mobile apps continue to be a potential avenue for making income, with different monetization strategies such as in-app purchases, advertising, subscriptions, and affiliate marketing, allowing both free and paid apps to succeed. The key to achieving this lies in comprehending your target audience, generating user-friendly experiences, and leveraging data-driven strategies to optimize engagement and revenue. Whether you’re building an app to encourage physical products, offer services, or drive customer loyalty, the possibility to earn is vast. At Progatix, our custom software development solutions strengthen businesses to change their ideas into profitable apps with innovative design and functionality. Reach out to us today and turn your app vision into reality!
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