How do Free Apps Make Money?

1. “Freemium” apps to make money

Do free apps make money? You bet! You can make your application free to download, but provide additional features at extra charge. Thus your users may get a sense of what you app can offer them at no cost. If your application is interesting enough, people will be ready to pay for extended version.

1. In-app purchases

Being one of the most popular methods to make money on free apps, in-app purchases is the strategy when you give an app away, and then ask some money for extra purchases made within an app. This may be vividly exemplified by game apps, where a user might want to buy additional coins or power ups. How much money can you make from an app in this case? Unfortunately, it is not easy to predict amounts of possible revenues. The best way to get better understanding is to try it out.

Note that you won’t get all money that your users pay. Currently, AppStore works on a 30/70 split, meaning that Apple gets 30% of total users purchases (and you get 70%).

1. In-app advertising

This is one of the simplest ways of making money with apps. The largest ad networks are iAds for Apple and Admob for Google applications. Basically, there are two revenue-generating options here: CPM (cost per thousand impressions) and CPC (cost per click). However, be ready that firstly you will be able to earn not that much – about a couple of bucks from every 100 downloads.

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