How Can Free Mobile Apps Make Money in 2021

This blog is for those who want to learn how an app is created by mobile application development Noida, monetized, or how you can make money through an app. You can find numerous free apps as compared to paid ones and most of us are confused about how do they make money?

Here are Popular Revenue Models for How Do Free Apps Make Money


This is the most common and easiest way for a free app and is also done via a third-party ad network. Being an app owner you just need to display commercials in your mobile application or opt for affiliate marketing and after that, you will be paid by third-party ad networks.

You earn money every time the ad is displayed, click on the ad, and when the installation is done by the ad. Also, you can run ad campaigns for generating ad revenue for some time.

Display ads are of mainly five types; they are:

  • Interstitial ads
  • Banner ads
  • In-app video ads
  • Native ads
  • Rewarded Videos


This is the most useful monetization strategy; it is up to you to offer free content or limit it for some time and then charge a subscription fee.

The free trial period is the most common technique for app publishers; this is often used for cloud services, audio and video streaming, and online news services.

Selling Merchandise

You can also sell merchandise on your free app; most of the e-commerce businesses do build free apps for selling goods such as dresses, shoes, toys, etc. these products can be sold directly by the app or via email marketing.

In-App Purchases

This is done within the free mobile apps and is usually a simple process. By this users are allowed to access special contents or features such as power-ups, restrictive levels, or additional features.

Simply, in-app purchases provide users the ability to sell a variety of virtual items directly from the app. According to Forbes, the apps offering in-app purchases generate the highest revenue for their publishers.

Generally, this model is used by game publishers because of digital money as games provide more than one currency such as gems, coins, and gold.


This one is the less commonly used but still can be an interesting strategy. Sponsorship can be a powerful strategy if the publisher builds the right niche app for a targeted audience and launch it on behalf of another company.

Referral Marketing

This involves promoting a third-party product or service. You can promote or sell affiliates’ products or services depending on the number of clicks or installations. Pop-up ads can be used to promote someone else’s app or advertise products.

Collecting and Selling Data

An app collects thousands of data as per the user behavior or other app usages; this data is desired by many researchers in different fields. So free app publishers can sell the users’ behavior data to these researchers and can earn a good amount of money. The data mainly has email addresses, social media accounts, and personal preferences.

Physical Purchases

Most of the e-commerce businesses and startups have started using free applications to sell their products or services through app development via Mobile App Development Company in Delhi.

For example, Angry Birds increased the profit from branded products. Through this app, a company has sold approx 1 million branded t-shirts, backpacks, and stickers every month.

Transaction Fees

This is the best way to monetize your apps. This is possible with those apps that provide a platform, where digital transactions occur on a regular basis. For example, if your app has an option for third parties to sell their products online, then you can charge transaction fees.

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Bottom Line

With so many monetization models available, it is important to know that each method has its own benefits and drawbacks. However, trying out these and analyzing what your competitors are doing is a good starting point.

In case, if you still have any questions or confusion about creating an app that makes money,

Then get in touch with CHL Softech and we will discuss such apps that make money and how it is possible.

We are here to assist with your questions. Write us a message, and we will get back to you shortly.