How to Monetize Free Apps Without Killing User Experience?

Whether you’re looking to play games, boost your productivity, stream movies on a Friday night, or build a healthier lifestyle, there’s an app for that. Thanks to the Google Play Store and Apple App Store, finding the right application is just a few clicks away. Most users are drawn to free apps, which continue to dominate the app marketplace due to their accessibility and wide range of features.

However, while users enjoy the benefits of free applications, it’s important to remember that developing and maintaining an app involves high costs—from design and coding to hosting, updates, maintenance, and whatnot. This leads to a common and crucial question among aspiring app developers and entrepreneurs: How do free apps make money?

In this blog, we will guide you through the smart monetization strategies that help a large number of free applications earn money. These strategies will not only help you earn money but also increase your profits and boost your revenue. Want to know how? Continue reading the article to understand how you can change revenue without hurting the user experience.

You may also like to read about: How Businesses Use AI to Boost Sales and Maximize Revenue?

Free Apps Market: Everything You Need to Know

According to research, the global app market is a large and growing industry, with a projected revenue of US$437.75 billion in 2022. This revenue is expected to grow at a 7.48% annual rate, reaching US$781.70 billion by 2029.

This data underscores the immense potential for growth and success in the app market, inspiring developers and entrepreneurs to tap into this lucrative industry.

This data highlights how individuals and businesses are constantly developing custom applications for their businesses and making them accessible to everyone. Not every application is for generating revenue, as many companies also build a custom application for their customers to provide them a better opportunity to explore their services. This user-centric approach to app development not only enhances the user experience but also creates wealth opportunities for developers.

Nowadays, users are more focused on using a high-quality, efficient, and convenient application that gives them direct results without being interrupted multiple times. There is no denying that viewers dislike watching ads, which, most of the time, is considered the common way of monetization.

However, according to the studies, the US tends to discontinue using applications that are filled with ads. So, how to monetize your application without interrupting the user’s experience? The good news is, there are effective strategies that allow you to monetize your app without compromising the user experience, providing a confident and reassuring path to app monetization.

Best Ways to Monetize Free Apps Without Compromising the User Experience

Here are the best ways for a business or an individual to monetize free apps.

1. In-App Advertising

One of the most common ways to monetize the free application is by using advertisements. However, poor execution of advertisements can frustrate the audience and affect their experience.

However, if done smartly, you can not only achieve higher user engagement but also generate revenue. But how to do it? Here are the most effective ways to incorporate ads on your application that will help you generate wealth.

Native Ads:

These are ads that are designed to blend in with the app’s interface, making them less intrusive and more engaging. A good example of this is the ‘Sponsored Posts’ you see on your Facebook feed. Usually, free apps use native ads that are especially designed for the application and that look similar to the app, making them less intrusive and more engaging. These kinds of ads are usually used by the applications, both free and paid, to blend into the application and generate revenue.

Rewarded Ads:

Another popular kind of ads are rewarded apps, which are mainly used in gaming applications, which are focused on attracting users and making them engage with them. Usually, we come across these kinds of applications and often engage with them. These kinds of ads usually include gaming experiences that extend for 30 seconds and let the user play. By incorporating these ads into your platform, you are not only generating revenue but also adding to your customer experience and often creating leads.

Logical ads:

Another popular strategy for using ads in FD applications is by displaying them at the right time. Players dislike getting ads during prime time. So instead of using the ads, when they are most required, show them after a certain time. These ads are designed to match the look and feel of your app, making them less intrusive and more engaging.

2. Freemium Model

This is the go-to-way for free applications to generate revenue. The premium model offers the basic functionality for free, but the premium services are paid for. These kinds of models are very popular among applications, and the majority of platforms, including Canva, PicsArt, Spotify, and other applications, use this to encourage users to pay for the premium features. Here are the two ways that you can use in your application

Free Basic Features, Paid Extra Features:

The Application must provide free offers that are required for all individuals. However, the exclusive content, tools, and features should be under the paid model.

Reminder of the Paid Benefits:

A gentle reminder about the features and benefits of your application can help in attracting the attraction of users to your advanced features.

3. In-App Purchases Options (IAPs)

Next, the In-app purchases, which are considered bonuses when paired correctly. Nowadays, many applications offer such services, especially gaming platforms, which offer exclusive options to users. So, if you are building any application where you can offer customization and virtual gifts, and services, use it now.

4. Subscription-Based Revenue

Popular among the service-based platforms. Subscriptions are ideal for apps offering ongoing value like tools, features, and services. Whether it is about productivity, fitness, or entertainment, the subscription model can be beneficial to generate big revenue.

Free Trial Periods:

Many applications offer 330-day free trial options to businesses or individuals. So that they can be aware of the platform and enjoy he benefits freely.

Recurring Revenue:

You can offer monthly or yearly subscription plans and play with the money by offering less subscription value for yearly plans. This technique is beneficial to hold the customer in the long run.

5. Affiliate Marketing and Sponsorships

Nowadays, affiliate marketing has become a big name in the application world. Using this method can not only enhance your revenue but also bring a strategic partnership for you. Collaborate with the big brands and succeed in generating revenue. You can also sponsor content like articles, videos, or apps in a non-disruptive manner.

Conclusion

If you have started building your application and are looking to generate revenue, then it’s high time to implement these options now. Monetization of the apps doesn’t mean that you have to bombard unlimited ads and force payment options.

By employing ethical strategies and thoughtful approaches, you can capture the user’s attention and provide them with great value within your application. However, you have to remember that the key to a successful application is focused on the user experience. Follow these strategies to generate revenue in the competitive market and continue to grow better.

If you are looking to build a custom application for your business, reach out to our company, TechRev. We provide customized solutions to businesses according to their needs. Book your appointment now.