There are several proven ways to monetize a mobile app, and the best strategy depends on your app's purpose, target audience, and business goals. Many successful apps, especially free-to-play games, use a hybrid model that combines multiple methods to maximize revenue. 

Common monetization models

• In-app purchases (IAP): Selling virtual goods, extra features, or content from within the app.
  • Best for: Games (e.g., extra lives, virtual currency), fitness (e.g., premium workout plans), and social apps.
  • Pros: High revenue potential, especially from highly engaged "whale" users.
  • Cons: Users who don't spend may feel a disadvantage, potentially leading to a "pay-to-win" perception.
• Subscription model: Charging users a recurring fee for continued access to content or premium features.
• Best for: Content-heavy apps like streaming services, news apps, and productivity tools that offer ongoing value.
• Pros: Provides a steady, predictable revenue stream and encourages higher user engagement.
• Cons: Requires a constant stream of new, valuable content to justify the recurring cost.
• Best for: A wide range of apps, including productivity (Notion), language learning (Duolingo), and social platforms (LinkedIn).
• Pros: Attracts a large user base with a low barrier to entry.
• Cons: Low conversion rate from free to paid users, and the cost of supporting free users can be high.
• Best for: Free apps with a large, active user base, such as mobile games, news apps, and social platforms.
• Pros: Monetizes the large percentage of users who will never make an in-app purchase.
• Cons: Intrusive or excessive ads can degrade the user experience and drive users away.
• Best for: Niche apps that offer unique and high-quality solutions, where users are willing to pay upfront for the value.
• Pros: Provides an immediate revenue stream and offers an uninterrupted, ad-free experience.
• Cons: The upfront cost can limit the audience size and make it harder to attract downloads. 
• Freemium model: Offering a basic version of the app for free, with an option to pay for premium features, an ad-free experience, or additional content.
• In-app advertising (IAA): Displaying ads within the app. Various formats exist, including rewarded videos, interstitial ads, and banner ads.
• Paid apps: Charging a one-time fee for users to download and use the app.

How to choose the right strategy

To select the best monetization strategy for your app, consider these factors: 

• Your app's purpose: A casual game might be suited for a freemium model, while a high-value utility tool could justify a paid app or subscription.
• Your target audience: How willing are your users to pay? Are they more receptive to watching ads for rewards, or do they value an uninterrupted, ad-free experience?
• Your goals: Are you prioritizing a large user base or a high average revenue per user (ARPU)?
• Your competitors: Analyze how similar apps are monetizing their products and what is working for them.