Generating Models

Hundreds of apps are developed daily to serve some purpose, to cater to a particular demand identified in the market. But above all that, they are developed to generate revenue (there’s no surprise there). And when the idea behind app development is established, the next step is to decide on the apt revenue model. How to choose the right revenue model, you ask? Reckon to answer these questions:

  1. Why are you developing this app?
  2. How is it going to be different from other apps?
  3. Which revenue model worked out for your competitor?
  4. Which is that one feature that will make users pay for it?

Next? Plan in the direction of the most suitable revenue model for your app and move your way up to a revenue-generating mobile app! Below are the top-most preferred revenue models.


Freemium is a popular revenue model amongst app providers. In this revenue model, the app offers basic features for free, but charge to unlock premium features. This revenue model allows the user to have a sneak-peek into the app and experience the feel of it, without spending money. But this sort of revenue model calls for a feature-rich mobile app that intrigues the user to explore it more and pay for the unexplored premium features. Make sure not to include too many, or very few free features in the app. The goal to tempt users to pay for premium features may not work out if there are a lot of free features. On the other hand, offering very few free features will lead to an unsatisfactory app experience. The game is all about having the right proportion of free and paid features.


The subscription model is a ‘free try out’ revenue model where the user is provided with a trial period of the app. The user gets to try it and understand it, and then sign up for a subscription in order to get further access to other services of the mobile app. This revenue model is suitable for those apps that provide specific services. One of the pros of this revenue model is that it allows the app provider with a recurring revenue. Keep in mind that this subscription revenue model does not serve all types of mobile apps. It is opted mostly by news, entertainment, or lifestyle app providers.


Paid app revenue model is exactly what it sounds like: paying to access the app. The user is asked to pay at the time of downloading the app as the app is not available for a free download. Each time someone downloads the app, revenue is generated. Making a mark in the app market and creating an app that stands out becomes quite challenging for the app providers with the paid app revenue model, as there are many similar apps around, ready to offer themselves for free. In such case, the paid mobile app needs to be super effective with five-star reviews, screenshots, etc., on the play store/app store. Also, there should be a key feature that is unavailable in competitors’ free apps to make users choose your app over your competitors’.


The in-app advertising model is one of the most popular revenue models out there. Apps built on this model are free to use, with various advertisements popping up in between, and redirecting the user to advertisers for generating revenue. The main, underlying goal here is to gather a decent amount of users and their data, which is then sorted for reasonable information. This data is purchased by app publishers who post targeted advertisements in the mobile app.

These were some of the recommended revenue models that have proven to work for app providers. Remember, one size doesn’t fit all. It’s all about knowing the requirements properly, working out the main objective of building an app and going forward with the right revenue generating model.

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