Mobile app monetization is the process of generating revenue from a mobile app, and there are several ways you can earn by publishing apps. Selecting the right app monetization model for a new app is important to its success. Learn about the different models to see which is best for your new app. Here methods of earning are discussed.


In-app advertising involves displaying ads within your app, and it can be a lucrative monetization strategy when implemented thoughtfully. There are various ad formats, including banner ads, interstitial ads, video ads, and native ads. You can work with ad networks like Google AdMob, Facebook Audience Network, or integrate ads from direct advertisers.


There are several types of Ad: 

  • Banner Ad
  • Interstitial Ad
  • Native Ad
  • App-open Ad
  • Rewarded Ad


  • No Direct Cost: Doesn’t require users to pay for the app, making it accessible to a broader audience.
  • Recurring Revenue: Generates revenue as users engage with ads, providing ongoing income.
  • Targeted Advertising: Ad targeting can improve the user experience by showing relevant ads.


  • User Experience: Intrusive or poorly placed ads can negatively impact the user experience.
  • Revenue Variability: Income can be inconsistent depending on user engagement and ad performance.

Freemium Model

The app and basic services will be free; but some premium services will be commercial. In-app purchases involve selling virtual goods or content within the app. Mobile games often use this model to sell power-ups, cosmetics, or currency packs. However, it can also apply to non-gaming apps by offering premium content or features for purchase. 

Another best example is a Free app which runs on Ad may offer Ad-free version by paying one time fee or monthly fee.


  • User Base: Attracts a larger user base with a free entry point. 
  • Ongoing Engagement: Encourages ongoing user engagement as users seek to unlock or enhance their experience. 


  • Balancing Act: Requires a careful balance between free and premium features to avoid alienating free users.
  • User Resistance: Some users may be reluctant to spend money within the app.

Paid Downloads

The traditional approach involves charging users a one-time fee to download and install your app. This is effective if your app offers unique and compelling value that justifies the upfront cost.


  • Immediate Revenue: Generates revenue with each download.
  • No Dependency on In-App Purchases: Doesn’t rely on users making additional purchases within the app.


  • High Barrier: Users may be hesitant to pay upfront, limiting your initial user base.
  • Competition: Faces competition from free alternatives.

Subscription Model

The subscription model is suitable for apps that provide ongoing services or premium content. Users pay a recurring fee, typically on a monthly or annual basis, to access these features. This approach ensures a steady stream of income as long as users maintain their subscriptions.


  • Predictable Revenue: Provides predictable and recurring revenue.
  • Potential Tiers: Opportunity to offer different subscription tiers with varying features.


  • Resistance to Commitment: Users may be hesitant to commit to ongoing payments.
  • Sustaining Value: Requires consistent delivery of value to retain subscribers.

Sponsorships and Partnerships

Collaborating with brands or businesses through sponsorships and partnerships can be a lucrative monetization strategy. You can promote products, events, or services in exchange for a fee or revenue share. This approach works particularly well for apps with a niche audience that aligns with specific brands or products.


  • Revenue Potential: Can generate significant income through partnerships.
  • Brand Building: Builds brand credibility and trust through reputable partnerships.
  • Cross-Promotion: Opportunities for cross-promotion and co-marketing with partners.


  • Partnership Effort: Finding and negotiating partnerships can be time-consuming.
  • Alignment Challenges: Sponsorships should align with your app’s values and user base.

Affiliate Marketing

Affiliate marketing involves promoting third-party products or services within your app and earning a commission on sales or referrals. It’s a viable option if your app has a niche audience that aligns with specific affiliate programs.


  • Commission Potential: Potential for high commission rates for successful referrals or sales.
  • Diversified Monetization: Monetize without developing your products.


  • Relevance: Success depends on the relevance of affiliate products to your audience.
  • Perceived Intrusiveness: Users may perceive affiliate promotions as intrusive if not done tastefully.

Notification Marketing

You can send user notification by Firebase about any specific product, and get paid by the product owner. 


Now you will have to decide the perfect way to monetize your app. It depends on your app type.