top of page
Business Meeting

10 Best Business Models for Mobile Apps to Leave their Mark on the Market

The Grasp of Mobile Apps 


Mobile apps have taken over the market as the no of mobile devices have increased and as people prefer them more than a web app. But due to the presence of so many apps, it becomes difficult for the users to know, which one is worthwhile, and which one is not. Hence, it has to be taken care by the developers to build engaging an app so as to attract the maximum users and profit.


Businesses need to take care to build a proper and organised mobile app monetization model in order to stand out and stay in the market. The players who have figured out the same, have managed to stay and conquer the through various business models, of which some are listed here.

10 Business Models For Mobile App

1. Freemium

The name itself suggests that the app is free. It is one of the most favoured type of business models, and one of the most successful one too. In this type, the app is offered for free upto a certain extent, depending on the functionality of the app, and after that it is paid. The plus point is that, the user gets the whole look and feel of the app, its benefits and features   and then he has to pay for the premium features, which are worth the amount, which is the goal of the app company. In a way, these features act as a bait for the users, to catch and keep them engaged until they pay for it. But, the features should be such that anyone would want to pay for it after using it for a while.

Most of the music apps and antivirus apps are freemium ones.
















2. Paid Apps

The user has to pay when the app is downloaded is the simple meaning of this kind of app. This increases the revenue instantly, as the revenue is generated just by downloading the app from the store. Therefore, it also helps in mentioning in the number of user downloads which is mentioned in the app description, and also provides a good review about the app, irrespective of it being engaging. Thus, the app has to be such that users download it, is very much engaging and also such that, it stands out in the crowd of apps.

Some examples of paid apps are Nova Launcher Prime & Swipe for Facebook.












3. In-App Purchases

One of the most profitable kind of revenue generation in the field of apps are in-app purchases. It means to purchase any physical or virtual goods within the app, Physical or real goods like the e-commerce stores selling goods or the virtual goods like lives, coins in games. This kind is beneficial, as it converts the app into a direct sales channel, and gives instant revenue to the company.

The effect of it can be observed by the revenues of giants like Amazon & Flipkart who have gained a lot by this method. The revenue of game companies that made games like Candy Crush, Angry Birds, Clash of Titans, Farmville, Pokemon-Go and many others have sky-rocketed within a short span of time due to in-app purchases. But, the features and offers should be that unique, so that it becomes viral like the above games and people love to pay for it.









4. E-Commerce Apps

The building of e-commerce apps has also proved very useful in generating quite a good amount of revenue for the app businesses, given that it becomes trustworthy and offers that kind of service and products to the people.

Amazon and Flipkart like companies have gained an immense amount of money from their apps. E-commerce apps are beneficial because they can be built regardless of the company having a physical inventory. One’s own physical inventory can be sold or someone’s else’s also can be sold.  The manner in which these companies attract customers by gaining their trust plays an important role of their hold in the market, otherwise, they would just be lying in the play store like hundreds of apps.















5. Subscriptions

Subscriptions are a wonderful manner to generate profits for the company. The services in this kind are provided free of cost and then are to be subscribed in order to get further access to all the functionalities of the app. This subscription can be provided to the customer on daily, weekly, monthly or yearly basis for a very nominal amount which ensures regular and continuous payment to the developers. Music apps like Gaana, Spotify, movie apps, book apps, news apps etc use this kind of model.













6. Sponsorship

Companies hire advertisers who come up with different activities like survey and competitions and offer rewards, coupons to the users making them happy and, on the other hand, generating a customer base for the business app.

It is win-win situation for all as the advertisers get the ad space, users get rewarded, and the app developer generates revenue.















7. Advertisements

There are many kinds of advertising methods like banner advertising, video advertising, reward ads, event based ads etc. which offer a lot for the user as well as the company. Banner ads are the ones that appear on the top and bottom of the screen with relevant text and images. Video advertising is quite useful and attractive because they are ads in the form of videos, which is quite appealing to everyone. Apps having games use the reward apps so as to offer virtual rewards in exchange of user impressions. Sometimes, too many ads irritates the customer, hence it should be taken care of.













8. Contractual Work

It has become, quite a trend online to give contractual work. Apps like freelancer, truelancer, upwork etc use these kinds of apps which give money in exchange of the work provided through it.

therefore, it is best for freelancers as the payment for any work is  on a regular basis.









9. License 

Licensing apps includes offering the app to some techno giant like Samsung or Motorola who have it installed in their app, and on downloading it, there is a royalty amount paid which benefits the app company and the user too. The app can also be sold to these kind of companies to make a good revenue.


10. Cost per install ads

Companies like Facebook have adopted this method, wherein the app install ads generate  a good amount of revenue for the company. The ads can be seen displayed, with the help of mobile ad networks, and would work, once the right audience is captured.










So, which model shall you adopt? To be honest, there is no hard and fast rule, and every model has its advantages and limitations. Also, one can adopt more than one of these business models and integrate them. One shall only achieve the perfect option through trial and error or having extensive research data. I hope you found this article helpful!

10 Best Business Models for Mobile Apps to Leave their Mark on the Market
best business model for mobile app
advertisement business model for app
license business model app
Screenshot (166)_edited.jpg
 Business Models for Mobile Apps
business model for ecommerce apps
coontractual work
Sponsorship business model
install ads.png
Read Also.....
Web Design

React.js – The Future of Web Frontend Frameworks

React.js is one of the most popular and enjoyable web frontend frameworks to work upon. Not only Facebook, companies like .......

Information Technology

Why Node JS development is on trend?

Node.js is a very powerful JavaScript-based platform built on Google Chrome's JavaScript V8 Engine. It is used to develop I/O intensive web applications like video .....

Home Control App

What are the top 10 qualities that define an App Developer?

“Measuring programming progress by lines of code is like measuring aircraft building progress by weight”- Bill Gates......

bottom of page