{"id":12966,"date":"2021-07-06T09:00:39","date_gmt":"2021-07-06T07:00:39","guid":{"rendered":"https:\/\/yeeply.com\/en\/?p=12966"},"modified":"2023-12-11T13:37:33","modified_gmt":"2023-12-11T11:37:33","slug":"make-money-with-app-free-paid","status":"publish","type":"post","link":"https:\/\/yeeply.com\/en\/blog\/mobile-app-development\/make-money-with-app-free-paid\/","title":{"rendered":"How to make money with your app: free app vs paid app"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Currently, up to 90% of the time we use our mobile phones is spent on apps. Therefore, <\/span><b>how to make money with a free or paid app<\/b><span style=\"font-weight: 400;\"> has become a major goal for many companies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The app market is continuously growing and it is expected that <\/span><b>by 2025 this sector will be worth no less than 226 billion dollars<\/b><span style=\"font-weight: 400;\">. A tasty morsel that no company wants to leave off the table.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><div class=\"bt-proyecto\"><a class=\"do-not-track\" href=\"https:\/\/yeeply.com\/en\/mobile-app-development\/?rel=EN-BT-proyecto-app#publish-project\" target=\"_blank\" rel=\"noopener\">WANT TO CREATE AN APP? TELL US ABOUT YOUR PROJECT!<\/a><\/div><\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Index:<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#versus\">Paid App vs Free App<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#ways\"><span style=\"font-weight: 400;\">Other ways to make money with a free app<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#tips\"><span style=\"font-weight: 400;\">Tips for choosing the best strategy\u00a0\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#conclusion\">Conclusion<\/a>\u00a0<\/span><\/li>\n<\/ul>\n<h2><span id=\"versus\" style=\"font-weight: 400;\">Paid App vs Free App\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Nowadays, we can create our app to <\/span><b>make money<\/b><span style=\"font-weight: 400;\">. We can do it through free or paid apps. One strategy is not better than the other, but knowing how to choose is important in order not to waste time and money.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">?\u00a0 You might be interested: <\/span><a href=\"https:\/\/yeeply.com\/en\/blog\/7-revealed-secrets-of-famous-app-businesses\/\"><i><span style=\"font-weight: 400;\">7 Revealed Secrets of Famous App Businesses<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Paid app<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You have to make an initial outlay to use them. These are applications that will <\/span><b>give you money directly<\/b><span style=\"font-weight: 400;\"> but have a lower number of downloads, as there are customers who are not willing to pay without having tried what you offer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your customers have <\/span><b>high expectations<\/b><span style=\"font-weight: 400;\">, so the platform has to work perfectly and offer functionality that meets their needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The design and development of these types of apps are high and their monetisation options are more limited.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Free app<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">They attract more users and <\/span><b>have higher visibility<\/b><span style=\"font-weight: 400;\"> and number of downloads.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, they also generate a lot of feedback that helps to optimise the user experience.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They are<\/span><b> less costly to design<\/b><span style=\"font-weight: 400;\">, as they start with something simpler, and based on the feedback received from their use, they are refined. Consumers of these applications do not have such high expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They also offer <\/span><b>multiple monetisation possibilities<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><span id=\"ways\" style=\"font-weight: 400;\">Other ways to make money with a free app<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">In-app advertising<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In-app advertising displays advertisements, usually through video rewards. Typically, when the user sees an ad, they <\/span><b>get coins to unlock additional levels<\/b><span style=\"font-weight: 400;\"> or features.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In-app ads have a <\/span><b>higher likelihood of reaching audiences<\/b><span style=\"font-weight: 400;\"> than if done through other means. They also help measure interaction and generate more traffic.\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disadvantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This model is <\/span><b>effective only with apps that have a high user attraction<\/b><span style=\"font-weight: 400;\">. If unattractive ads are used, they are completely ignored, and can even be seen as a bad user experience by interrupting the user&#8217;s session.\u00a0<\/span><\/p>\n<figure id=\"attachment_12968\" aria-describedby=\"caption-attachment-12968\" style=\"width: 640px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-12968 size-full\" src=\"https:\/\/yeeply.com\/en\/wp-content\/uploads\/2021\/07\/money_and_smartphone.jpg\" alt=\"whatsapp and money\" width=\"640\" height=\"427\" srcset=\"https:\/\/yeeply.com\/en\/wp-content\/uploads\/2021\/07\/money_and_smartphone.jpg 640w, https:\/\/yeeply.com\/en\/wp-content\/uploads\/2021\/07\/money_and_smartphone-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-12968\" class=\"wp-caption-text\">Smartphone and banknotes. Source: <a href=\"https:\/\/unsplash.com\/@dadaben_\" target=\"_blank\" rel=\"noopener\">Unsplash<\/a><\/figcaption><\/figure>\n<h3><span style=\"font-weight: 400;\">Subscription<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Typically, the application offers free content for a trial period, after which <\/span><b>users pay a subscription fee<\/b><span style=\"font-weight: 400;\"> for unrestricted access to the content.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They offer reliable revenue and are apps that attract users who are committed to the platforms they consume and create feedback that allows them to improve the app.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They use <\/span><b>low prices in the fees <\/b><span style=\"font-weight: 400;\">that do not involve a large outlay for the customer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disadvantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">New <\/span><b>features and content need to be added regularly<\/b><span style=\"font-weight: 400;\"> to keep the app up to date and interesting. It also requires a good and efficient support system.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u270f\ufe0f\u00a0 Recommend article<\/span><a href=\"https:\/\/www.yeeply.com\/blog\/motion-design-tendencia-diseno-apps-webs\/\"><span style=\"font-weight: 400;\">:<\/span><\/a> <a href=\"https:\/\/yeeply.com\/en\/blog\/how-much-does-it-cost-to-create-an-app\/\"><i><span style=\"font-weight: 400;\">How much does it cost to make an app?<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">In-app purchase<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This model turns free app users into consumers in <\/span><b>a way that is not too intrusive<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It allows you to sell a wide variety of virtual goods and enhance the user experience.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is a method with the potential for <\/span><b>high profits through a high number of low-priced purchases<\/b><span style=\"font-weight: 400;\">, by acquiring gems or in-app coins, which are used to purchase more advanced services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Credit data is securely protected for in-app purchases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disadvantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If purchases are implemented poorly it can lead to negative reviews and disgruntled users. You also have to<\/span><b> keep consumers engaged to keep them paying<\/b><span style=\"font-weight: 400;\"> through constant updates and new products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cost of design and development is high.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><p><a href=\"https:\/\/yeeply.com\/en\/landing\/download-ebook-apps\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/yeeply.com\/en\/wp-content\/uploads\/2020\/04\/CTA_YEEPLY_Guia_APP_EN.jpg\" alt=\"Ebook 1 App Descarga\" \/><\/a><\/p><\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Freemium<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Freemium apps are applications where users <\/span><b>download the app for free<\/b><span style=\"font-weight: 400;\"> but have limited access to the services offered. If they like the app, they have the option to pay to enjoy the rest of the functionalities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They have great reach because<\/span><b> they are free<\/b><span style=\"font-weight: 400;\">, have the advantage of a subscription model and do not feature intrusive ads that can annoy the user.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disadvantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are <\/span><b>fluctuations in revenue<\/b><span style=\"font-weight: 400;\">, as sign-ups to the app are not as reliable as in the subscription model.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">?\u00a0 Keep reading<\/span><a href=\"https:\/\/www.yeeply.com\/blog\/growth-driven-design-metodologia-rediseno-web\/\"><span style=\"font-weight: 400;\">:<\/span><\/a> <a href=\"https:\/\/yeeply.com\/en\/blog\/update-app-improve-kpis\/\"><i><span style=\"font-weight: 400;\">Mobile App KPIs: How to Improve them by Updating your App<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Selling data<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Mobile phones are usually used by a single person, so their use is related to the owner&#8217;s daily habits. Applications collect a large amount of information that they can then sell to <\/span><span style=\"font-weight: 400;\">companies and organisations interested in it<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Such data is a useful tool to <\/span><b>identify and listen to the needs of consumers<\/b><span style=\"font-weight: 400;\"> and make these needs available to companies that can use them and, for example, segment consumers in purchasing processes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is also a very profitable monetisation model.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disadvantages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is difficult to maintain the confidentiality of customer data in some cases and guarantee the security of the data.<\/span><\/p>\n<figure id=\"attachment_12969\" aria-describedby=\"caption-attachment-12969\" style=\"width: 640px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-12969 size-full\" src=\"https:\/\/yeeply.com\/en\/wp-content\/uploads\/2021\/07\/work_with_data.jpg\" alt=\"working with data\" width=\"640\" height=\"427\" srcset=\"https:\/\/yeeply.com\/en\/wp-content\/uploads\/2021\/07\/work_with_data.jpg 640w, https:\/\/yeeply.com\/en\/wp-content\/uploads\/2021\/07\/work_with_data-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-12969\" class=\"wp-caption-text\">Working with data. Source: <a href=\"https:\/\/www.pexels.com\/it-it\/@divinetechygirl\" target=\"_blank\" rel=\"noopener\">Pexels<\/a><\/figcaption><\/figure>\n<h2><span id=\"tips\" style=\"font-weight: 400;\">Tips for choosing the best strategy\u00a0\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We list three tips to choose the best strategy for your app<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">App<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The first thing is to <\/span><b>decide what we want the app to do<\/b><span style=\"font-weight: 400;\">. That is, establish what problem it solves and how it does it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We will be able to define what type of monetisation fits best for our app, as not all formulas work the same for all types of applications.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Competitors<\/span><\/h3>\n<p><b>Competitor research<\/b><span style=\"font-weight: 400;\"> should be a priority.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Studying <\/span><b>other similar apps<\/b><span style=\"font-weight: 400;\"> will allow us to know what users like most about them, what aspects need to be improved to offer a better product and what monetisation strategies are the most common and how they are used.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Users<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Another very important aspect when defining our product and that will help us to choose the monetisation strategy is <\/span><b>the study of potential customers<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is necessary to investigate their profile with information such as age, needs, time slot in which they will use the app, how much they are willing to pay, etc., focusing on designing a product that meets our objectives and user needs.<\/span><\/p>\n<h2><span id=\"conclusion\" style=\"font-weight: 400;\">Conclusion\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As you saw, <\/span><b>make money with your app is a very important decision and it is not an easy one to make<\/b><span style=\"font-weight: 400;\">. Yeeply has been advising companies and startups for years to choose the best solution for their business. If you have a project and you need us to give you a hand,<\/span><a href=\"https:\/\/yeeply.com\/en\/mobile-app-development\/?rel=EN-LNK#publish-project\"><span style=\"font-weight: 400;\"> tell us briefly what you need<\/span><\/a><span style=\"font-weight: 400;\">. We will be happy to help you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><p><a href=\"https:\/\/yeeply.com\/en\/mobile-app-development\/?rel=EN-BP-proyecto-app#publish-project\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/yeeply.com\/en\/wp-content\/uploads\/2020\/04\/EN_proyecto-app_blog-post_B.png\" alt=\"Proyecto App\" width=\"620\" height=\"253\" \/><\/a><\/p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Currently, up to 90% of the time we use our mobile phones is spent on apps. Therefore, how to make money with a free or &#8230;<\/p>\n","protected":false},"author":2,"featured_media":12967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_uag_custom_page_level_css":"","footnotes":""},"categories":[24],"tags":[],"class_list":["post-12966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile-app-development"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Free app vs paid app: how to make money with an app<\/title>\n<meta name=\"description\" content=\"Make money with a free or paid app is a major issue for many companies. 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