Effective Strategies for Monetising Your Mobile App in 2025

Building an app is exciting. But what separates a hobby project from a sustainable business is your answer to one question: how will this app make money?

Many founders pour time and money into building apps with slick features and beautiful designs, only to realise post-launch that they haven’t actually planned how to monetise the product. This isn’t just a rookie mistake—it’s one of the top reasons startups fail. A CB Insights report reveals that 38% of failed startups cite “no viable business model” as the cause.

The good news? There’s never been a better time to build a revenue-generating app. App users are more willing than ever to pay for value—whether through subscriptions, purchases, upgrades, or even donating. The key is choosing the right monetisation strategy for your audience, your product, and your long-term vision.

This guide walks you through:

• The meaning and importance of mobile app monetisation

• The most effective monetisation models in 2025

• How to select and implement the best fit for your users

• Common mistakes, key metrics, and real-world case studies

This isn’t theory—it’s the roadmap we’ve used with hundreds of founders across Australia and beyond.

What Is Mobile App Monetisation, Really?

App monetisation is the process of generating revenue from your mobile application. Whether your app is free or paid, whether it serves consumers or businesses, there’s always an opportunity to turn user engagement into income.

Let’s break it down:

• Monetisation strategy is the overall plan for how your app generates revenue (e.g., via subscriptions, ads, or selling services).

• App monetisation model refers to the specific method used to execute that strategy, such as the freemium model, affiliate revenue model, commission model, or in-app purchases.

Think of strategy as your map and the model as your vehicle.

Monetisation should feel like a value exchange, not a tax. The best monetised apps make users want to pay.

Monetisation doesn’t start when you build payment screens. It starts when you choose to solve a problem worth paying for.

Why App Monetisation Matters for Founders and Innovators

Monetisation isn’t just about making money—it’s about making your product sustainable.

Whether you’re building a startup or leading innovation within an enterprise, your ability to fund development, growth, and support depends on revenue. Without monetisation, your app becomes a cost centre.

Here’s why it should matter to you from day one:

1. Funding your growth

2. Improving product focus

3. Making your app investor-ready

4. Building user trust and loyalty

5. Setting your app apart from the competition

Let’s put it plainly: if your app solves a real problem, people will pay. Your job is to make that payment feel frictionless, fair, and worth every cent.

When to Plan Your App Monetisation Strategy

A common trap? Waiting until after launch to figure out how to make money.

Without clear monetisation goals, you end up with features that delight but don’t convert. Here’s a better timeline:

Real-world lesson: Apps that launch without a monetisation plan often struggle to introduce pricing later without upsetting users.

Top App Monetisation Models in 2025

We explore these in detail in the full article, but here’s a summary of the most common monetisation methods:

What About App Store Fees?

Many first-time founders forget that app stores take a cut of your revenue. If you use in-app purchases, subscriptions, or any native app store monetisation, Apple and Google will take a percentage of every transaction.

For a $10/month subscription, that’s $3 gone to Apple or Google—before taxes, before marketing spend, and before you’ve paid yourself or your team.

What can you do?

• Consider web-based payments for subscriptions or top-ups, using tools like Stripe or Paddle. This bypasses in-app purchase rules in certain use cases (e.g., B2B or external service bookings).

• Use hybrid monetisation models—where only part of the monetisation runs through the store

How to Choose the Right App Monetisation Strategy

This is where vision meets execution. The right app monetisation model depends on your product type, user journey, and long-term goals.

Here's a framework to help you align your monetisation model with your product reality:

Step 1: Who is your primary user?

• Consumers → Freemium, ads, IAPs, affiliate revenue model

• Businesses → Subscription, direct sales, usage-based billing

Step 2: How often will users return?

• Daily/weekly → Subscriptions, in-app purchases, ad-supported

• Occasional → One-time payments, commission model, direct sales

Step 3: Is your app transactional or experiential?

• Transactional (e.g. marketplaces) → Commission model, arbitrage model

• Experiential (e.g. learning, lifestyle) → Subscriptions, freemium, affiliate links

Step 4: What's your Average Revenue Per User (ARPU) target?

• Low ARPU + Large audience → In-app advertising, affiliate revenue

• High ARPU + Niche audience → Subscription, direct sales, high-touch offers

Best Practices for Monetising Your App

Now that you’ve chosen a strategy—how do you execute without ruining the experience?

Here are 10 best practices used by the most successful apps:

Anchor pricing to value

Don’t charge for access—charge for outcomes. Make it crystal clear what problem the paid version solves better.

Start with a single model

Trying to do ads, subscriptions, and IAPs from day one will confuse users and slow your team down.

Build a free-to-paid upgrade path

Design frictionless upgrade triggers: locked features, time-based access, or usage thresholds.

Be transparent about pricing

Users hate surprises. Tell them what they get, how much it costs, and when billing kicks in.

Use contextual CTAs

Prompt users to upgrade when they experience value (e.g., “This is a premium filter—unlock it now.”)

Offer payment flexibility

Monthly, annual, lifetime. Bonus: annual users churn less and pay more upfront.

Bundle value

Combine features into themed plans (“Pro for Freelancers,” “Team Plan,” “Analytics Suite”).

Don’t over-monetise early

First impressions matter. Give new users time to fall in love before showing the paywall.

Continuously test

Test pricing, trial length, freemium tiers, upgrade CTAs, and even placement of pricing buttons.

Make it feel native

In-app purchases, pop-ups, and upgrade flows should feel like part of the experience—not interruptions.

Key Metrics to Track

Revenue doesn’t just appear—it needs to be measured, optimised, and improved.

Here are the essential KPIs for a monetised app:

Common Mistakes to Avoid

Even great apps fail to generate revenue when monetisation is poorly executed. Avoid these traps:

Launching without a business model

Your monetisation strategy isn’t a “later” decision—it shapes everything from UX to architecture.

Over-relying on ads

Unless you have millions of users, in-app advertising won’t sustain your team. And users hate intrusive ads.

Building features no one pays for

Use data. Validate demand before investing dev time into premium features.

Paywalls with no perceived value

Users will only pay if what’s behind the curtain feels 10x better than what’s free.

Hiding prices

Lack of transparency breaks trust. Always explain pricing tiers and billing terms.

Monetisation by App Type (Quick Reference)

Every app is different, but certain monetisation models pair better with specific types of apps: