When it comes to making money off your mobile app, there are three main possibilities to choose from: paid download, freemium, and ad-based. Each of these comes with its own advantages and disadvantages, and since this really isn’t something you want to get wrong, deciding on which is best for your own app can be difficult. Today we’re going to take a look at the pros and cons of each.
Before we get to that, however, the first thing you need to know is that if your app is poorly designed, poorly implemented, or doesn’t provide a pleasant user experience, the question of monetization models is moot. Bad apps don’t make money, so make sure that your first priority is to develop a quality product.
That said, choosing the right revenue model can vastly improve your chances for success, depending on which one you choose:
Of course, you might want to mix it up a bit and using a combination of these revenue models. If you consider a service like Pandora, which relies on ad revenue for its regular service but offers a freemium, ad-free upgrade, it’s clear that you can get creative with the revenue models and still make decent money.