Choosing the wrong monetisation model is one of the most common causes of app failure. A great product with the wrong business model can generate almost no revenue.
Monetisation Model Comparison
Mobile app monetisation models
| Model | Best For | Risk | Avg ARPU |
|---|---|---|---|
| Paid upfront | Productivity tools | Download barrier | £1-10 |
| Freemium | Social, productivity | Feature gating must be right | £2-20/month |
| Subscription | Content, tools, services | Churn management | £5-50/month |
| In-app purchases | Games, e-commerce | Pay-to-win perception | Variable |
Why Subscriptions Win
Subscription apps are valued at 3-5x revenue multiples compared to 1-2x for one-time purchase apps. They also produce more predictable cash flow. The tradeoff: subscriptions require demonstrating ongoing value.
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The Paywall Moment
Best paywall placement: immediately after a user achieves their first success with the app — the aha moment. Hitting the paywall during onboarding before value delivery is the most common freemium mistake.
App MonetisationFreemiumSubscriptionsMobile Revenue
Tanvir Tuhin
AI consultant, digital marketer, and study abroad mentor based in Aberdeen, UK. Founder of JJAT Education.
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