• # Gohar Aslam
  • # App Development
  • # 15 November, 2023

Effective Strategies for Entrepreneurs: To Earn Money from Android Apps

This article highlights varied strategies to help you how to earn money from Android apps. With over 2.5 billion active users in 190 countries, Android is the world’s most popular mobile operating system. There is no doubt that Android owes its success to smartphone industry heavyweights – Samsung, Google, Oneplus, Xiaomi, and Oppo – for deploying Android mobile OS on their smartphones. As such, the role of Android apps is also instrumental in reinforcing the market demand for the Android mobile OS. The total number of Android apps on Google Play is 3.3 million, which indicates breakneck competition between numerous apps vying to reach the target audience and maximize revenue. 


If you want to launch an app for Android or have already deployed an app on Google Play, you must devise and implement groundbreaking monetization strategies to replenish profits. Although advertising remains the most popular method to generate income from apps, there are other monetization methods, too, that you can employ to boost your profits.


 Key Monetization Strategies Earn from Android Apps:

Monetization Strategies for Android Apps 

1. In-app purchases

Most apps in Google Play use in-app purchasing to generate revenue, which can be a great strategy to optimize revenue. Users can purchase additional special features and functions using the in-app purchasing option, such as upgrades, premium subscriptions, and virtual goods. In this manner, users will make purchases within the app, resulting in increased revenue for the app owners. However, refrain from pursuing aggressive monetization strategies, which can discourage customers from purchasing.


2. In-app advertising

In-app advertising is another powerful tool to bolster monetization in Android apps. This model displays ads in the app, from which the developer makes money whenever a user clicks or interacts with an ad. The monetization model for in-app advertising can differ according to the agreement and ad types. For instance, you could get a fixed fee for the number of views on ads and earn an increased payment if the number of clicks on an ad.


3. Referral marketing

Referral marketing for apps is a strategy where existing users are incentivized to refer new users to download and use the app. This type of marketing can be effective for apps because it can quickly grow the user base and increase app downloads. The referral marketing method usually comprises the following models.

  • Cost per click (CPC)

Cost per Click (CPC) is an online advertising pricing model where the advertiser pays a fee for each click on their ad. Advertisers bid on keywords or placements to display their ads on search engines or websites.

  • Cost per View (CPV)

Cost per View (CPV) is an online advertising pricing model where the advertiser pays a fee each time a user views their video ad.

  • Cost per Install (CPI)

Cost per Install (CPI) is an online advertising pricing model where the advertiser pays a fee each time a user downloads and installs their app.

  • Cost per Action

Cost per Action (CPA) is an online advertising model where the advertiser pays only when the user completes a specific action, such as a purchase or form submission.


4. Subscription Model

In a subscription model, app owners charge users a recurring fee to access premium features or content. App developers define what features or content will be available only to subscribers, identify the subscription price and frequency, and make the subscription process easy for users to understand and sign up for. A free trial period is offered to encourage users to try the subscription before purchasing. The app is continuously updated and improved to retain subscribers and attract new ones. Normally, audio/video streaming apps, dating apps, fitness apps, and digital news portals use a subscription model to generate lucrative profits. 


5. Freemium Model

The freemium model is a pricing strategy in which an Android app is offered for free, but users can upgrade to a premium version with additional features or content for a fee. In this model, the app’s basic features are free and accessible to all users, while advanced features or content require payment. It is a popular way for app developers to earn money while providing users a low-risk way to try the app before committing to a purchase.


6. Native Ads

Native ads for apps are a type of advertising that fuses with the app’s user interface and design, making them less irksome and more user-friendly. Native ads are developed to complement the app, and they can pop up in various formats, such as in-feed ads, sponsored content, or recommended apps. They usually appear as “sponsored” or “ad” to ensure transparency. Native ads can help app developers earn revenue by promoting other apps or products within their app while providing users with a pleasing user experience.


7. Banner Ads

Banners are a standard advertising format used to aid monetization in Android apps. In this model, an app developer places banner ads in their app, typically at the top or bottom of the screen, and earns revenue based on the number of clicks or impressions the ad receives. Banner ads target specific audiences and can include images, text, or videos. App developers can earn money by displaying banner ads from advertising networks or direct advertisers. However, banner ads can be obtrusive and adversely impact the user experience.


8. Interstitial Ads

Interstitial ads are full-screen advertising that appears between different app screens or during natural breaks in-app content, such as between levels in a game or during video playback. These ads tend to be more captivating and arresting than banner ads. Interstitial ads can include images, videos, or interactive content to target specific audiences. App developers earn revenue each time users click on or view an interstitial ad. However, interstitial ads may appear as interruptive and bothersome for users.


9. Incentivized Ads

Incentivized ads are used to stimulate monetization in Android apps, where users earn a reward for interacting with an ad. App developers offer rewards in the form of virtual currency, game items, or other rewards to users who watch or engage with ads. It can encourage users to view and interact with more ads, leading to increased revenue for the app developer. Incentivized ads can also benefit advertisers, as they can increase the likelihood of users taking a specific action, such as downloading an app or signing up for a service. However, incentivized ads can lead to poor user engagement and lower retention if there are too many ads or the rewards offered are of petty value.


10. Push notification Ads

Push notification ads appear as a message on a user’s device screen. An app developer or advertiser sends them directly to a user’s device, including text, images, or videos. Push notification ads can promote new app features, sales, or other promotional messages. App developers can earn money by partnering with advertisers to send push notification ads to their users. 


11. Affiliate Marketing

Affiliate marketing is a performance-based marketing strategy used to accelerate monetization in Android apps to earn money. In this model, app developers earn a commission for promoting other people’s products or services. App developers partner with affiliate programs or networks and promote their partner’s products or services through in-app advertising, referral links, or other promotional channels. When a user clicks on an affiliate link or makes a purchase through an app’s affiliate program, the app developer earns a commission. Affiliate marketing can be profitable for app developers to earn money without creating their products or services. However, choosing affiliate partners that align with the app’s brand and audience is essential to ensure optimized profitability.


12. Sponsorship

Sponsorship is a technique used in mobile apps to earn money where app developers partner with sponsors or advertisers to promote their products or services to app users. In this model, app developers integrate sponsor or advertiser messages into their app’s content, such as in the app’s menu or during gameplay, and earn money in exchange for the promotion. Sponsorship can be a profitable way for app developers to make money while providing value to their users through relevant and engaging sponsor messages. 

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How do payments work in Google Play?


As an app owner, there are a few things you should know about how payments work for apps in Google Play: 

  • Google Play Console

The Google Play Console is the dashboard where you manage your app, including pricing, distribution, and payment settings. You must sign up for a developer account and submit your app to Google Play before accessing the console.

  • Payment options

Google Play supports various payment options, including credit and debit cards, PayPal, carrier billing, and gift cards. You can choose which payment options to offer for your app.

  • Revenue share

Google takes a 30% cut of the revenue generated by your app, and you keep the remaining 70%. If your app generates more than $1 million in revenue, Google’s cut drops to 15%.

  • Payouts

Google pays out your earnings once a month, with a minimum limit of $1. You can choose to receive payouts via direct deposit or wire transfer.

  • Taxes

You must pay any taxes on your earnings from Google Play. Google provides tax forms and information to help you understand your tax obligations.

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How do free apps make money?

Free apps make money through various methods, such as in-app advertising, in-app purchases, and the freemium model. In-app advertising involves displaying ads within the app that users can click on, and In-app purchases allow users to purchase additional features or content within the app. The freemium model offers basic features for free but charges for more advanced or premium features. 


Which is the most popular monetization strategy to earn money from Android apps?

Various monetization strategies are effective at generating revenue from Android apps. However, app advertising remains highly popular, allowing app owners to generate income without requiring users to pay for the app or its features. In-app advertising can take many forms, including banner ads, interstitial ads, and rewarded video ads.


How much money can I earn from my Android app?

The amount of money you can earn from your Android app depends on several factors, such as the type of app, the number of downloads, the ad revenue, and the in-app purchases. There is no set amount, but some successful apps can generate thousands of dollars monthly.


How do I choose the right monetization strategy for my Android app?

The best monetization strategy depends on the type of app, its target audience, and features. For example, a gaming app might be better suited for in-app purchases, while a news app might be better suited for in-app advertising. Researching your target audience and understanding their needs is essential to choose the right strategy.

Senior Content Writer
Gohar Aslam
Coding Pixel

Gohar is a seasoned IT writer specializing in leading technologies. He holds a Diploma and Bachelor's degree from the University of London, with professional experience spanning over five years in the IT sector. His expertise involves a keen focus on mobile applications, web apps, blockchain, content management systems, e-commerce, and fintech. Beyond the professional field, Gohar is an avid reader and reads extensively about emerging and innovative technologies.