Free as well as premium applications deploy a hybrid monetization strategy which is based on two or more of these monetization models – each with its own advantages and challenges. According to mobile app development companies in Dubai , these are the most common models:

In-App Purchases (IAP)

Some apps offer users the ability to purchase virtual goods, premium features, or additional content within the app. This model is popular in freemium apps, where the core app is free to download and use, but users can make purchases to unlock advanced features or enhance their experience.

Freemium Model

Some free applications provide a basic version of the app with limited features or functionality, and offer a premium version or subscription-based model for users who want access to additional features or content. The users can upgrade within the app – but the purpose of basic features is to help users decide before committing to a purchase. This is a common model and drives paid user acquisition and retention.

Subscription-Based Pricing

Premium mobile apps offer users the option to subscribe to the app on a recurring basis (eg, monthly or annually) to access exclusive features, content, or services. Subscription-based pricing provides a predictable and recurring revenue stream for app developers and can incentivize ongoing engagement and retention.

Advertising

App founders who launch free applications make money by displaying advertisements to users. This includes various ad formats such as banner ads, interstitial ads, native ads, and rewarded ads. Developers can earn revenue based on ad impressions, clicks, or actions taken by users (eg, completing a survey, installing another app).

Sponsorships and Partnerships

Some micro-niche app founders partner with brands, advertisers, or other businesses to integrate sponsored content, promotions, or branded experiences within the app. This includes sponsored posts, branded challenges or events, product placements, and sponsored content recommendations.