How Do Free Apps Make Money?

How Do Free Apps Make Money?

Apps aren’t really “free” these days. Sure when you download them there isn’t a cost, but how are they so successful? Innovi Mobile is going to break it down for you!

#1 In App Purchases

The app is available for free download and users are given an option to purchase product, or paying to unlock special features. The purchase is usually made through the Apple Store or the Play Store. You are given a certain amount of lives and coins (depending on the game) but to get more quickly you can purchase them at different price points and quantities.

2 Subscription

Think of Pandora or Spotify. The app is completely free to use (it just uses data) but with the free version you are limited to skips and you get ads. When you purchase Spotify or Pandora premium you get unlimited skips, offline listening and you’re add free. This however comes at a price and you are usually charged once a month.

#3 Ads

Ads. Don’t we love them? Pretty much any app has them and the only way to get rid of them is to buy the advanced version so you don’t see them. There are a few popular ones we see which are: banner, video and native ads.

#4 Sponsorship

These offer a more target, integrated presence versus in-app ads. Sponsorships are often negotiated with a single company and the ads are likely to be more relevant to the needs of your users! You might see one thing, but someone else using the same exact app might see something else.

#5 Freemium

You get the best of both worlds, its free but you have limited access to the premium content. This one is pretty straightforward.

It really depends on what type of app you are creating. Free apps may not fit your needs, but paid apps do and vice versa. Start thinking of what kind of app you want to create and weigh the pros and cons of each. Let Innovi Mobile help your team design and build your next app! Click here to learn more.