How to Earn from an App in 2025

Over the past 15 years, the app market has shown constant growth, and this trend is expected to continue. According to the Mobile App Market Forecast 2030 by SensorTower (formerly data.ai), by 2030 alone, $288 billion will be spent on in-app purchases.

In a world where almost everyone has a smartphone and there’s an app for everything (yes, even for making coffee!), it’s natural to ask: how do you actually make money from an app?

Anyone who has ventured into mobile development knows that designing, building, and maintaining an app is no small feat, both in terms of time and money. So, at what point is it possible to start earning from your app?

Making Money with Apps: Is It Right to Charge Users?

Thinking about a business model for your app isn’t greed, it’s about making your project sustainable in the long term and keeping users happy.

Suppose you’ve developed an app that thousands of users appreciate. You’ve likely spent money bringing your product to market (if you want to know exactly how much, take a look here).

Inevitably, without revenue, your resources will eventually run out. This means no more updates, perpetual bugs, no new features, and ultimately, unhappy users abandoning the product. What a waste, right?

For this reason, it’s important to think about monetization from day one and choose the right strategy for the type of product you’re bringing to market.

Monetization Models: Which One to Choose?

Can you make money with free apps, or do they have to be paid? There are several options, each with pros and cons. Let’s explore them.

In-App Advertising

A well-known and widespread option is in-app advertising. There are many platforms that offer this, the biggest being Google AdMob and Facebook Audience Network.

In this case, the cost to the user is zero, so it is possible to earn from the app even if it is free. Usually, payment is based on the number of views and clicks the ad receives, so this is suitable for apps with a good user base.

Ads can appear as banners or be integrated into the user experience—for example, in some games like Candy Crush, ads appear between levels or offer extra lives or tokens.

Pros: The app can remain completely free for the user and requires few resources to implement.

Cons: Ads at the edges of screens, or worse, interrupting the user flow, can worsen the user experience. Furthermore, earnings are usually limited, especially for lesser-known apps.

One-Time Purchase

App stores allow you to sell your application—usually at modest prices—at the moment of download. To do this, simply activate the option when uploading the app

It’s important to know that both Google Play and Apple App Store will take a commission on the price applied to the user, and this should be kept in mind if you base your business on this.

This model is often adopted by popular board games in their digital version, such as the famous Hasbro Monopoly, sold on the App Store for €4.99, but it is also common for other digital products such as eBooks and templates.

Pro: The cost for the user is modest, and you can earn from the app right away without waiting for user loyalty.

Cons: If the user doesn’t know your product, they may not be willing to buy it blindly without trying it first. Also, after the initial purchase, you will not receive further funds from the user, so you will need to keep finding new users to sustain your app.

In-App Purchases

These are applications that offer their basic function for free but allow users to enhance it with purchases directly within the app.

This is the case for many games that are playable immediately but allow users to get extra lives, new scenarios, or other advantages for a fee. A recent example is the collectible card game Pokémon, which allows players to open extra card packs via in-app purchases.

Pro: Can be effective for products that truly engage users who want more and more.

Cons: The user experience can be frustrating: having to pay to keep up with the game’s pace may lead the user to abandon the app, achieving the opposite effect than intended. 

Commissions

Many apps are free because their source of income is selling products within them. This is the case for platforms selling courses or third-party products, like Coursera, but it’s also a functioning business model for marketplaces like Vinted, which takes a percentage of sales made in the app.

Pro: Users are encouraged to buy because they have immediate access to available products, potentially generating instant revenue.

Cons: For this model to work, you need not only buyers willing to use your app but also sellers willing to pay a commission.

Subscription

Subscriptions are another very common monetization method. The user must subscribe to use the app’s features, providing monthly or annual payments.

This model is frequently used by apps offering courses, like Freeletics or LinkedIn Learning. The cost can vary widely depending on what is offered.

Subscriptions are often preceded by a free trial of the product, or small free content is available to show the user what to expect. This helps the user decide if it’s worth investing money, and it’s also a marketing tactic: once the user finds a truly valuable product, they are unlikely to stop using it.

Pro: Highly sustainable revenue model, providing stable income that allows continuous improvement of the product.

Cons: To keep funding the project, the app must continually offer value, updating features regularly to keep users engaged.

Freemium with Upselling

In our experience, this is often the most effective business model. Freemium gives access to the basic version of the product to all users, while exclusive features are offered only to those who financially support the project.

A famous example of this monetization is Duolingo, which offers premium users extra features, such as deeper skill exercises or mini-games.

Duolingo’s founder, Luis Von Ahn, in a well-known TED Talk, explained how this model allowed the app to pursue its mission: giving access to language learning even to the poorest populations, opening doors to better life opportunities.

Pro: Immediately provides app benefits, building user loyalty.

Cons: Can be hard to manage if too many users are satisfied with the basic version.

How to Make Money with Apps According to Mabiloft

As a software house, Mabiloft has followed several apps and concluded that there isn’t a one-size-fits-all path, but the best approach depends on the product.

However, there is an ideal model that works as a base for many cases. This monetization model works as a three-stage funnel:

• In the first stage, the user experiences immediate value, solving the problem that led them to download the app. At this stage, revenue is not financial but in user loyalty and growing popularity.
• Next, the user can purchase small features. While returns are limited, this creates a micro-commitment to the app.
• Over time, the loyal user opts for an upgrade, trusting the app that has already provided benefits without forcing payment.

Naturally, as with any funnel model, not all users will go through each step; as financial commitment increases, the number of users moving to the next stage decreases.

Guadagnare con la tua app fin da subito: un errore da non commettere

In our experience, a common reason apps fail to make money is poor early-stage planning. For your app to succeed, you need to answer these questions:

• What problem does my app solve?
• How many people have this problem?
• How much are they willing to pay to solve it?

Often, new digital products fail before they are even developed because they solve problems that don’t exist, or problems that can be effectively solved in other ways, therefore no one is sponsoring these products.

To ensure your product does not fall into this category, choose a target with a real need. Don’t try to solve a “problem for everyone,” but specialize in something solvable.

A further tip: clearly explain what you’re selling. If your product is ambiguous or its cost is unclear, you risk driving away potential users and funders.

If you need help starting your product, defining your business model, or want expert advice, book a free, no-obligation Sprint Check call, designed precisely for people in your situation.