Smart Strategies to Turn Your App into a Cash Cow

  • By Shamsher Singh Bhullar

  • 14th March 2024

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With mobile applications, we can now fulfill a wide range of needs in our daily lives, from entertainment to productivity. But making an app profitable requires more than simply designing a great product—it also requires implementing effective mobile app monetization strategies.

The world is moving at an excessively fast pace, causing human sentiments to change overnight. The digitization of each and every product and service calls for a dedicated app. People don’t want to commit to something that is chargeable until they find real value in it. This is the reason why it is crucial to let people find value in your app.
Whether you’re a seasoned developer or a newbie to the app development business, knowing how to monetize your app is essential to maintaining its long-term usage and profitability. We’ll go over a variety of app monetization techniques in this in-depth guide, from conventional methods to cutting-edge techniques, to help you get the most out of your app’s revenue potential.

App Monetization Strategies: How to Monetize Your App?

There are many different methods for making money from apps. Whether you have an iOS or Android app, you need a solid app monetization strategy. Some methods are conventional, referred to as traditional app monetization strategies or methods. 

We have also mentioned some innovative strategies for monetizing your app. The goal is to attract the audience and instigate curiosity among them. Let’s discuss some of the groundbreaking app monetization strategies.

A. Traditional Monetization Methods

Let’s have a look at some of the most conventional and obvious methods of app monetization to help you generate revenue from your app. To begin with, it is a must to invest in any one or two of the below-mentioned techniques to monetize your iOS or Android application.

traditional app monetization strategies

1. In-App Advertising:

Users spend 90% of their time on mobile apps. Ads integration is a frequently employed monetization strategy for mobile applications. Adding advertisements to your app can increase revenue depending on impressions, clicks, or conversions. These advertisements can be banner ads or rewarded videos. One must know where to put ads and how to maximize ad revenue without sacrificing user experience.

Some of the best practices for in-app advertising are mentioned as follows:

  • Invest in a high-quality ad creative.
  • Choose a suitable ad format.
  • Track via device ID, monitor and test your ads frequently.
  • Align your promotions with user timing for maximum engagement.

2. Freemium Model:

Users can upgrade to premium services or content for a fee, while fundamental features are provided for free under the freemium model. It is important to understand how to upsell and keep premium members and how to combine incentives to encourage free users to upgrade to paid versions in the ideal proportions.

Marked as one of the most successful and the best app monetization strategies, let’s look at the case of Dropbox

Dropbox is a prominent cloud storage provider and a file-hosting service. The app rose to fame because of its freemium model. It offers 2 GB of free storage to new users for a month, and when it gets exhausted, users tend to buy the storage since switching to another app becomes a hassle.


3. In-App Purchases: 

Users can purchase in-app virtual products, upgrades, or subscriptions through in-app purchases. Some prominent strategies for creating alluring in-app purchases include techniques, such as time-limited deals, premium content, and packaged deals, to boost sales and encourage conversions.

4. Affiliate Marketing:

It is yet another one of the best app monetization models and strategies for making money from your app. You can earn a good amount of external commission by advertising other brands on your app through banner ads or short-form video ads. Developers can easily integrate various affiliate marketing techniques to earn considerable revenue.

B. Innovative Monetization Approaches

It is a great idea to opt for app monetization strategies that function inside the app. However, you can also go above and beyond for more innovative app monetization methods and techniques.

Innovative Monetization Approaches

1. Subscription Model: 

Subscription-based monetization has grown in popularity, particularly for apps that provide continuous services like streaming platforms, productivity tools, and fitness apps. You must be aware of the methods for retaining subscriber loyalty by consistently providing valuable content and tailored experiences. 

Take Google One, for example. When you subscribe for the first time, it offers a relatively low price for the first three months. Then, it costs $2 per month for 100 GB storage. Users can choose among various storage options, such as  2 TB, 5 TB, and 10 TB. Users can also choose between monthly and yearly subscriptions.

2. Sponsorship and Partnerships: 

Another excellent method to make money out of our app is to look for sponsorship and partnership opportunities. You can approach apps with a massive or medium-sized user base and ask them to put up your app advertisement. It could be adding your ads to a gaming app so that people can click on it. This is called Click-Through Rate (CTR). 

3. Crowdfunding and Crowdsourcing: 

Through crowdfunding sites, app developers may ask their target audience for money directly and receive it in exchange for perks or early access. Furthermore, the app’s crowdsourcing capabilities can captivate users and give them the ability to submit ideas or content, building a feeling of community and making money off user-generated content.

4. Email Marketing:

Email marketing is one of the easiest app monetization strategies to implement and yields a high return on investment (ROI). You must be thinking about how email marketing can be effective in monetizing an app. 

According to OptinMonster, 60% of consumers claimed that they made a purchase because of a promotional email. You can harness the power of user segmentation and email personalization to prompt users to purchase or subscribe to your app.

It is also one of the best iOS app monetization strategies, as the iPhone email app has the highest market share, according to Litmus Labs.

5. Interstitial Ads:

You must be aware of banner ads, but do you know about interstitial ads? Keep on reading to know how to monetize your app using interstitial ads. 

App developers have realized that people are no longer interested in in-app ads, such as banner ads. They tend to skip them and often close the app when interrupted. This is when you can use interstitial ads. An interstitial ad covers the entire screen and is non-invasive. These ads occur quite naturally in the transitional points.

An example of an interstitial ad is given below.

full screen interstitial ads

Tips and Tricks for Effective App Monetization

Apart from conventional and innovative methods, we have mentioned some pivotal tips and tricks to help you effectively perpetuate the practice of app monetization. App creators often get stuck in the loop of attracting a large user base and still making money from it. 

The only way to earn handsome money from your app is to strategically create dedicated hype for it by leveraging the power of digital marketing. You can also promote your app through social media marketing and influencer marketing. 

Tips and Tricks for Effective App Monetization

Some of the relevant and effective ways to monetize your iOS and Android app are as follows:

  • Know Your Audience: 

Comprehending the inclinations, actions, and financial readiness of your intended audience is essential to creating revenue-generating tactics that appeal to them. Learn more about your users’ demographics and preferences, conduct market research, collect user feedback, and examine app statistics.

  • Focus on User Experience: 

Prioritizing the user experience over monetization is crucial for retaining users and fostering long-term success. Avoid invasive ads, optimize app performance, and continually deliver value to cultivate user trust and loyalty.

  • Experiment and Iterate: 

Try out various price schemes, revenue streams, and monetization approaches without fear. To improve your monetization approach and increase revenue potential, keep an eye on performance indicators, test variations A/B, and iterate based on user feedback.

  • Value-Driven Monetization: 

Delivering value to consumers through your app’s features, content, and overall experience should take precedence over just making money. Users are more inclined to interact with monetization choices voluntarily when they believe the advantages outweigh the disadvantages.

  • Stay Agile and Adapt: 

The app market is ever-changing due to shifting consumer tastes, trends, and technologies. Keep yourself updated on market trends, rival tactics, and new revenue streams so you can modify your strategy and remain one step ahead of the competition.

Wrapping Up

By implementing these tips and leveraging a mix of traditional and innovative monetization strategies, you can effectively monetize your app while fostering a positive user experience and driving sustainable growth. 

These tips and tricks can help you monetize your app. We suggest you start slowly based on your budget and capital and then gradually move forward.
If you need help with your app development, Deftsoft has a team of skilled app developers with a proven track record across various markets. We also offer various digital marketing solutions to cater to our client’s ap monetization strategies.


What is meant by app monetization strategy?

App monetization strategy is a technique to seamlessly earn money from your iOS or Android app. The goal of any app developer is to encourage users to invest in paid versions of your app. However, it is an important practice to make people familiar with the free version of your app first, also known as working on the freemium model.

What are the best traditional methods for app monetization?

One of the top-notch traditional methods to earn money from your app is to follow foolproof app monetization strategies. These strategies include prompting users to make in-app purchases, investing in high-quality ad creative for in-app advertising, looking for affiliate marketing opportunities, and following the freemium model.

What are the best innovative methods for app monetization?

Some of the best innovative app monetization strategies include introducing a subscription model for your audience, investing in sponsorships and partnerships, looking for various opportunities in crowdfunding and crowdsourcing, and reaching out to potential app users through email marketing.

How do you create a monetization strategy for your app?

Start by inspecting your app’s current monetization opportunities. Look for features that can be monetized. Create a user persona and identify his triggers for making purchases. Invest in sophisticated ad creative to connect with the audience. These are some of the creative app monetization strategies for your app.

Mention a monetization strategy for SaaS.

First, you must determine the pricing model of your SaaS product. Then, look for monetization opportunities and learn how to implement the freemium model to make money from it.

Written By
Shamsher Singh Bhullar
calendar 14th March 2024
Shamsher Singh Bhullar, heading the business and sales department at Deftsoft, has 12+ cross-industry experience that makes him an expert with thorough knowledge of upcoming business concepts. He has successfully led multiple teams in Digital Marketing and AEM and has an art of converting challenges into opportunities. Apart from developing innovative business and marketing strategies, he is committed to inspire and empower everyone around him to portray their very best.

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