Choosing how an app earns is a product decision, not an afterthought. The right model depends on how people use the app. Here are the main options and their trade-offs.
Advertising
Free apps can show ads. This lowers the barrier to installing, so more people try the app. The trade-off is that ads interrupt the experience, and the income per user is usually small, so it needs a large audience. Place ads at natural pauses, never in the middle of a task.
Subscriptions
Subscriptions charge weekly, monthly or yearly. They suit apps people use again and again, because the value continues. They give steadier income, but users expect ongoing improvement, and you must make cancelling easy and clear. Explain exactly what the subscriber gets before the payment screen.
In-app purchases and credits
Users can buy one-time unlocks or packs of credits for features that cost you something to run. This fits features used occasionally, such as an AI answer or a premium export. Show the price clearly and let people try something first.
Paid upfront
Charging for the download is simple, but fewer people install a paid app they have not tried. It works best for well-known, clearly valuable tools.
Combining models
Many apps combine a free tier with ads and an optional paid upgrade. Be careful not to let ads and paywalls fight each other, because too many prompts drive people away.
A quick way to choose
- Used daily: consider a subscription.
- Used occasionally: consider ads or credits.
- Expensive to run, such as AI features: consider usage-based credits or a subscription.
Follow the platform rules
Digital content or features unlocked inside an iOS app generally need to use Apple’s in-app purchase system, and the App Store Review Guidelines set rules for how subscriptions are presented. Read them before you design your paywall.
We cover store setup and income models in the App Development course.