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Hello Everyone, today we’re gonna be discussing about an interesting topic which is How Do Free Apps Make Money. We’re gonna be analysing the methods they use to make a profitable income. Although, there are many business strategies used at the present, We’re gonna be discussing about three of them.

As free apps market have always outnumbered the paid ones (in terms of profits and download numbers), most of the people often ask a common question that – how much money do apps make. Ever thought how to make money from apps?

Before we answer that question on how free apps make money, the first thing you need to know is that the app boom hasn’t ended (and it won’t), according to Techcrunch.

Even though the percentage of paid app revenues has decreased to 37.8 % from 75.9%, the mobile application market is still worth billions of dollars.


Image Source : spaceotechnologies.com

So if you think that free mobile apps are not as profitable as much as the paid ones, then you’re absolutely wrong. The fact is, 98% of worldwide revenue comes from free apps, according to Google Play.

Other than that, More than 90 percent of apps on the market now are free. And, the revenues generated from apps that charge for download (paid apps) are expected to go down.

On Overall, there was a survey conducted in China, U.S. and the U.K. showed that spending for 3 month period on paid apps amounted $7.40 and $9.20 to buy in-app features. Through this we can understand that free apps are earning much more than paid ones.


Advertising :

Mobile advertising remains the most profitable app revenue model. 7 out of 10 app providers used it. Using ads to monetize app is quite simple, all required is to display commercial inside your mobile apps and get paid from the ad networks.

Due to this, mobile users have gradually moved away from using their mobile browsers to focus on the vast array of available mobile apps.

You can get paid every time an ad is clicked, and when a user installs the advertised app. Being a free version app, you can also run ad campaigns to generate ad revenue for a specific period of time. Using a mix of ad formats and placement can generate maximum revenue to developers and engagement to users.

84% of app users prefer rewards apps over applications containing ads. There is a number of tools that allow rewarding consumers on completion of a certain in-app action, The strategy allows creating better engagement. App developers get revenue from promoting their in-app currency by sponsors and gain happy and loyal users.

Subscriptions :

Free apps with restricted content or features is available for a limited time, the user can pay a subscription fee to get a full access and unlock it. This revenue type is often used for cloud services, video and audio streaming, online newspapers or magazines. Ex : Prime Video & Netflix The developer can provide users with free trial period and charge the subscription fee for an access without restrictions.

This new format was made to encourage the app publishers to sell their apps for a recurring fee instead of a one-time cost. But only 5% of the most successful apps are using a subscription feature for their revenue.


This means the app for free publishers can sell their users’ behavior data to the other revenue providing companies and making quite a lot of money. The data generally contains users’ email addresses, social media accounts, and personal preferences.

There is also a huge downside in this, some worst apps can even infiltrate the call history and contact lists or access users’ social media accounts. The good thing is that there are anti-surveillance tools that can help you protect yourself from spying.

Companies also prefer paying more money to relevant data. So if they can gather enough relevant data, then they can have a way to make a profit out of it.

As of now, the tech giants like Google and Facebook are following the same technique to gether a profitable revenue. They collect user data from us and sell it to the advertising companies for their profittable revenue.

Let me know what you think about this in the comments below.

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