How do free apps make money in 2020?

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Have you ever thought about the number of free apps for smartphones? You might be surprised that most of the world’s most requested and downloaded apps are freely available.

Some of the best examples of apps that have reached the world thanks to being free are Clash of Clans, Skype, and Netflix. This has led to the creation of an environment in which most users believe that most applications should be free, and indeed.

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The most important question here is, if these applications are mostly free, how do the manufacturers benefit from the application and how can they be profitable? This week we will cover this topic to show you how these applications work profitably even though they are free.

Take profit from apps

Both Apple and Google realize that working with the app costs a good amount of money (even for free apps). For this purpose, both Apple and Google find a way to save money for application workers.

This profit-taking strategy is divided into two parts: in-app purchases and in-app advertising. These two things allow workers on the app to earn profits even though downloading or downloading the application is free (which encourages users to download the application). How one or both of these matters depends on the type of application and the target audience as well.

In-app purchase

Applications that provide this strategy enable the user to download the application for free, as he can use the basic elements in the application, but there is a continuous motivation for the user to purchase other and distinctive features that the application provides that improve the user experience.

This type is usually adopted in video game applications, where users can improve the level of play by purchasing new equipment, stages, or levels.

However, this type is not only limited to games, but you can find it in applications such as Spotify, Microsoft Office, and even YouTube. In this case, the applications allow the user to be able to provide the features of the application in a manner that improves performance.

Advertising within the application

Advertising within the application follows a system similar to the methods of advertisements that we see on websites. In the application, ads are used in different shapes and sizes, and the cost of these ads is determined according to their importance and location. The developer of the application can get a certain amount based on the number of views and access to the page, as well as the location of most of the users.

Currently, there are several advertising platforms such as Google’s AdMob and Millennial Media that focus on in-app advertising, each of which provides unique ways to earn profits and also measures how ads perform in the app.


Both the in-app advertisement and in-app purchase feature provided a great opportunity for app developers to get money in exchange for “free” apps. This is in case you want to get money through free applications, many other things should be done.

Profiting from a smartphone app means that you have to study this topic carefully and make good strategies that are appropriate for your target audience. By studying both your audience and your business scope, you can lead this app to earn money appropriately for you and the user.

What do you think about making a profit from free apps? Do you prefer in-app payment or in-app advertising? Share your opinion in the comments box below and contact us on before on Facebook, Twitter, and LinkedIn.