The Definition
App monetization is how you turn a mobile app into revenue. The model you choose determines your ceiling, your complexity, and how much time you spend on billing instead of building.
The Four Models
1. Subscriptions (Recurring Revenue)
Monthly or annual payments. The App Store and Play Store take 15-30%. Revenue is predictable and compounds.
Best for: apps that provide ongoing value — fitness trackers, productivity tools, content platforms.
Implementation: RevenueCat handles subscription logic, receipt validation, and cross-platform sync. You do not build this yourself.
2. One-Time Purchase
User pays once, gets the app forever. Simple. But revenue does not compound — you need new customers every month.
Best for: utility apps, tools with a clear "done" state, games.
Implementation: Stripe for web purchases, App Store IAP for in-app.
3. Freemium
Free app with paid upgrade. The free tier is your marketing. The paid tier is your revenue.
Best for: apps where users need to experience value before paying. Most successful micro-SaaS apps use this model.
4. Ads
Lowest effort to implement. Also lowest revenue per user. Works at scale (millions of users). Does not work for most indie hackers.
What Actually Works for Solo Developers
After shipping multiple apps, here is what I have learned:
- Subscriptions win long-term but need retention. If users churn after month 1, you are running a one-time purchase business with extra complexity.
- Freemium + subscription is the most reliable path. Let users try, then convert the ones who get value.
- One-time purchases work for developer tools and boilerplates — products with clear deliverables.
- Ads require scale that solo developers rarely achieve.
The Cost Side
Revenue means nothing without margins. The advantage of building with free-tier infrastructure and a full-stack boilerplate:
- Hosting: $0/month (Oracle Cloud + Supabase free tier)
- Payment processing: 2.9% + 30¢ (Stripe) or 15-30% (App Store)
- Total fixed costs: under $20/month
When your costs are near zero, even $1,000/month revenue is a profitable business.
Getting Started
Pick the model that matches your app. Build payment integration from day one — do not add it later. Start with how to set up Stripe in React Native or adding in-app purchases.