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How to make money from an app? 6 business models

You already have a concept for an app. You know it will be created by passionate people, have an attractive design and a convenient UX.

It will certainly be better than many applications that are available on the market. But how will I make money from it, what benefits will my company get from it? Here are 6 business models that are commonly used for mobile or web applications:

Freemium model: In this model, the app is provided for free, but offers paid premium features or additional content that can be unlocked for a fee. This model allows the company to attract more users through free use of the app, and then generate revenue from the sale of premium features.

Subscription model: In this model, users pay a regular subscription fee to use the application and its features. Subscriptions can be offered at different levels (e.g. basic, premium) and with different benefits for subscribers. A very interesting model, given that most often in the basic model the user can get to know the app, which increases later conversions and generates recurring revenue.
Advertising model: This model involves displaying ads in an app or on a website to generate revenue. Ads can be displayed as banners, videos or pop-up ads, for example. Revenue is generated based on the number of ad impressions or clicks. This is a path for the advanced, you need to have very high traffic to generate measurable income.

Product/service sales model: In this model, the app serves as a sales platform for products or services. This can include selling physical or digital products or services such as reservations, food delivery, car rental, etc.
Platform model: This business model involves creating a platform where users can create, share or exchange content, services or products. The platform can take a commission on transactions or generate revenue from advertising, subscriptions or other sources. This model can be applied to many businesses.

Partnership and Cooperation Model: This model is based on establishing partnerships or collaborations with other companies or service providers. This may include integrating with other applications or services, collaborating through a partner program, or sharing features or content with other companies in exchange for a fee.

Note that the choice of business model depends on the specifics of the application, its target market, audience and business goals. Often you can also combine several business models to achieve a greater variety of revenue streams. The most important thing is that you define the business model precisely already at the concept stage, which will allow you to predict with high probability whether the application will be profitable.

How to make money from an app? 6 business models

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