A Perfect Guide For App Monetization In 2018

Posted by admin | September 15, 2017 | Mobile App Development, Start Up, Technology

Are you an Appreneur? Or are you thinking of becoming one?

In our last post, we mentioned the ways to validate your app ideas before investing in it.

If you have already validated your app idea and find it worth investing in, we have the next step guide ready for you here.

You  might be confused in which way to opt for app monetization. Well, there is no straight-jacket solution, but if you get the basic orientation of the pros and cons of all the three models, you can easily pick one for you.

Broadly, you can monetize your app in any one of these ways namely, paid version, freemium, and free version.

Your way to monetize an app can impact every element of your app and business. The whole business model will change with each different way to monetize your app. Every way has different development investment, investor pitch, marketing strategies and product features.

At Consagous, we’ve got an experience of working on hundreds of apps and the statistics show that the most successful ones give time for thinking about their app monetization strategy.

We often work with the clients to come up with a strategic recommendation about the business model that suits their needs the best.

But the final decision rests with the client. So here we are equipping you with all the pros and cons of the various business models.


Paid apps have clear and direct revenues, i.e., for every purchase from the app store, you will get 70% of the price and 30% goes to the app store. Here are the other aspects of the paid model:


Free apps, on the contrary, require different strategies. As the app is free for the users to download, the money needs to be sourced from other ways.

The first thing that clicks in one’s head is advertising, which is obviously the most common approach. Though it is not a big deal to go for in-app advertising, still the developers who use in-app advertising should be very cautious about where, when, how and what advertisements they place within their apps.

If done in excess, advertising can compromise the user experience which alienates the users and declines their retention. This will directly impact your revenues.

A close cut can be done in this though. A paid version of the free apps can be offered with ‘no ads’ being the selling point. Other pointers to be kept in mind are as follows:


A different model came into the picture called the freemium model a few decades ago, which kept the basic app features free and charge for small in-app purchases (IAP) for a variety of deals, like removing ads or unlocking advanced features.

Here as well, for every purchase developers get 70% and 30% goes to the store.

This model comes with its own set of challenges which are often overlooked by the developers. For making this model work for you, your app must be good enough to:

  1. Keep users engaged
  2. Give an impression to the user that the app is worth investing in
  3. Have an economy capable of making millions from the few top users

Also, Freemium takes a lot of data and product refinement to optimize for revenue. But, the benefits of the same should not be ignored. Freemium is the key through which top game developers make millions of dollars every month.

Contrarily, if app producer, David Barnard is to be believed, paid app is better than Freemium model.

He says, “While using IAP might work for some, it’s going to be a miserable failure for others. The problem is, you have to have just the right combination of crazy download numbers, high prices, high conversion rates, and/or recurring revenue to make a freemium strategy pay off in the App Store.”

If your app isn’t capable of attaining (most of) these, you should consider launching a paid app.

For further assistance, contact us here…

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