5 smart strategies for generating revenue from your app

It doesn’t matter whether you’re a small business or an international organization – when developing an app, you expect this type of investment to bring you substantial revenue. But just because apps are trendy and every business seems to have one, it doesn’t mean that you should treat the process lightly. In fact, experience shows that that many of these beautiful apps simply don’t generate any revenue. As a result, many people end up losing faith in app development. But it doesn’t have to be this way. Here are 5 smart strategies to help you create an app that generates serious revenue.


You might have designed a smart in-app purchasing scheme or developed enticing pricing for subscription services but the vast majority of people still wants their apps for free. In fact, a small chunk of your user base will be ready to pay for your app.

That’s why you should consider advertising. We’re not talking about annoying banners here, but a range of diversified ad products of various units and sizes. If you pair these up with analytics tools, you’re bound to have great CPMs and CTRs at your disposal too.


For some apps it is a good idea to offer two versions – one free or cheap and one which users pay for. The free app is there to give users a taste of what the product is about. You can set up a trial period to entice users to your offer and get them hooked on your app.

Building from there, offer your paid version to help users integrate the app with their lives even better. Offer substantial upgrades and a range of VIP features. That’s how you progressively build the value of your products and make your audience feel that your app is worth its price.


If you choose to monetize your app with subscriptions or in-app purchases, make sure to give your users multiple payment options – with one that asymmetrically dominates the horizon. One good example of subscription strategy was employed by the Economist:

A web subscription was offered at $59, print subscription at $125 and the combination of both print and web subscriptions at… $125. You can probably guess that the third options was the most popular because it seemed to offer the best value. Develop this type of pricing strategy and you’re bound to boost your conversion rate.


Another interesting option is building a blended model, where in-app purchases work together with advertising. Instead of setting your eyes at a single monetization strategy and offering lots of in-app purchases or subscription options, try mixing different tactics to come up with a hybrid that works for your users.

Include a couple of advertisements, several gated features and a few virtual items for your users to purchase. Monitor how your audience reacts to these – while some users love in-app purchases, other find them annoying. By building a blended monetization scheme, you’ll keep everyone happy.


If you know a company that has a similar customer base, you can look for smart ways for integrating their offer into your app for a special referral fee. This type of partnership however works only if your partner can really benefit from exposure to your audience.

Naturally, if you’re adding this type of features to your app, remember that they need to be perfectly integrated with the rest of it to provide a seamless experience. If you find the right partner, they can become a great source of revenue.
It’s key to think about app monetization already during the process of designing your app. Try one or more of the schemes listed above and you can be sure that your app brings you substantial revenue, helping to further engage and convert your audience.
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Katarzyna Lorenc
Marketing Specialist

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