Understanding Your App From a Monetary PerspectivePhoto by Ibrahim Rifath

Originally Posted On: Understanding Your App From a Monetary Perspective (ncntechnology.com)


The goal of an app is always to grow revenue. However, you may be questioning if you should be expecting to pull revenue directly from your app. There are two ways to look at monetizing your app. The first is to directly make money from users on your app. The second is to use your app as a resource within your more extensive sales funnel by increasing brand reach. Let’s explore some of the common ways that brands are monetizing apps.


Paid/Premium Apps

With this model, everything you offer is behind a paywall. The benefit of this is that you’re getting a self-selecting engagement group full of people willing to pay for what you’re offering. The downside is that access costs may be prohibitive for many people.



You may decide that you never want to charge app users for anything. You can still monetize your app without accepting payment if you decide to use paid sponsorships. This model turns your app into an advertising vehicle for sponsors interested in selling to your niche.


Paid Content Within the App

Another option is to run what is known as a “freemium” app. This means that you’re offering your app for free at download. However, it may contain special features that can only be unlocked with internal subscriptions.


In-App Purchase Model

With this model, you’re offering a free app that serves as a type of marketplace. Users can pick and choose what they want as they go. This can be an effective sales channel that still provides people with the feeling of being given tons of free access and content.


Ultimately, you may choose no model when launching your app. An app may be an engagement tool for smaller businesses that grows brand loyalty by offering more convenience. You may find that being found through app downloads is more than worth the cost and time associated with developing your app. It’s also OK to start with a free app while also planning to add more premium or paid content as you build downloads. The same goes if you’d like to eventually turn your app into a monetization vehicle for earning revenue through sponsorships.


The main focus now should be on simply establishing your app. The goal is to build up your download numbers using a stable, user-friendly design compatible with all of the major app platforms.


Need help developing a mobile app? Let NCN Technology bring your mobile app idea to life! Contact us today for more information.