Types of Business Models For Mobile Application Development

One of the most difficult tasks you have to face as a mobile app based company is to think about how to make money with your mobile app.

Ensuring that you have the business model understood can help you gain immensely from your mobile application.


Now-a-days mobile apps present a variety of ways of making money and at times this will make it difficult to rectify which business model you should go for.

Whether it’s a mobile game or a shopping/ photo editing app, the mobile market is pretty huge. If you have an idea of developing an app then go with your idea but you should also plan about the revenue stream.

There are various ways you can go for monetizing your app. Let’s take a look at some of the mobile application models that you can choose from


It is one the most favored way of monetizing your app by offering it for free. But the users have to at least once purchase it, to receive all the benefits from the app.

We do encounter a number of ads in our daily life, from music app to antivirus programs while they they all use freemium model.

By offering the app for free, the users are more likely to spend cash on the premium features of an app.

Related Post: Mobile App Testing Checklist

Freemium Apps That Allow Multiple Purchases

Just like the basic freemium model, a freemium app allows users to put more money  money while using the application.

It is usually seen in mobile games and this model instigates the users to keep spending money on their free app by offering additional game items.

And many of the addicted users keep pumping money into the game to advance their rankings.

Advertising on Freemium Apps

Advertising is the ultimate idea for any app publisher. This model offers the app for free, if the users can endure banner ads or simply they can purchase a premium version without having these disturbing ads.

The publisher will be benefited on both the occasions.

Partnering With a Sponsor

unlike the old ways of advertising, where a number of ads from various companies keep disturbing, so to eliminate these types of issues, many apps have made partners to a particular sponsor.

Only the ads pertaining to particular sponsor are shown in these kind of apps.

Related Post: How To Kickstart Mobile Application Development 

Video Advertisements

In this method, instead of just showing banner ad of your app, you can show a short video to the customers, which is more appealing and attractive.

The app developers are partnering with ad networks to make and show short video ads on their apps which will help in generating revenue.

Promotional Services

Without any promotion, you are surely not going to make a single penny from your mobile application. Even films need to be promoted to earn more money.

You can simply promote your apps by using promotional services like Appshout, by which your app can be visible to many consumers and app reviewers.

Even getting your app on websites and social media can help it grow more.

Paid Apps

It is easy to guess that this option means paying for the app from the very beginning.

It is a business model that has the potential to make money.

In order for this method to work, you need a brand or recognized product with devoted users or you can also use promotions to show your app to your target audiences.

You can also build such apps that everyone wants or you can also build an app as a service app for example – Uber and Ola etc.

To sum up, monetization is not possible without selecting a correct business model. Although, these are not just only ways of making money through apps, every model works differently and getting the best model is the key.

But definitely, there are many apps also, which have failed because the developers do not realize that managing a product requires a target audience and evolving business models.

Looking to develop a mobile application for your business? ValueCoders is a mobile app development company that offers Native as well as Hybrid mobile application development services in India for all kinds of  industry verticals.

About the Author

Mantra is a Business Consultant & strategic thought leader bridging the divide between technology and client satisfaction. With 12 years of knowledge, innovation and hands-on experience in providing consultations to Startups, ISVs & Agencies who need dedicated development & technology partners. He has also lead to the delivery of countless successful projects.
Blogging is his passion & he shares his expertise here through ValueCoders.. Follow him on Twitter & LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.