4 ways to make money from a free app

Creating a free app and making it profitable isn’t just possible—it’s been the core model behind some of the most valuable companies in tech. Most people don't pay to download apps. Yet, the global mobile app market hit $935 billion in revenue last year. So how does the money flow? And what exactly makes a free app worth something?

Look at League of Legends, for example. The game is completely free with skins and some quality-of-life features gated behind “shards”. They can be gained by playing or purchasing them, where players are enticed to purchase due to the prestige factor these skins provide.

Marvel Rivals is a more recent example, where again we have the entire game available for free, but there are battle passes, skins, and emotes available for purchase. While these do not affect the gameplay directly, they are seen as prestigious and are beneficial to the players wishing to purchase them, leading to an estimated $136 million monthly revenue for NetEase Games.

But have you ever wondered how sweepstakes casinos—those casino-style platforms that don’t require traditional deposits—bring in revenue? They provide a perfect example of how monetization can work without conventional gambling mechanics. Users don’t bet real money in the classic sense. Instead, they purchase "Gold Coins" for entertainment. These are virtual credits used to play slots or table games.

But here’s where it gets clever: users also receive "Sweeps Coins" either for free or as a bonus. These Sweepstakes Coins can be used to play special games, and if won, can be redeemed for real cash prizes. Such sweeps coins casinos are on the list Mike Epifani made, and they are worth checking out for potential players looking to explore further. But, besides those, there are other ways in which apps can make revenue, like:

• In-app purchases still dominate among revenue channels. Even productivity and fitness apps offer things like premium filters, extra cloud storage, and new templates. And while conversion rates aren’t sky-high—roughly 2 to 5 percent of users buy something—when scaled to millions, the returns can be substantial. How substantial? Well, TikTok made $6 billion from them.
• Freemium models operate on a psychological footing. So apps let them in for free, then gate features behind a subscription or one-time upgrade. This is common in tools like meditation apps, music streaming, and photo editors. The trick here is timing—offer just enough value to engage users, but hold back premium content until they’ve developed a habit. Fortnite is maybe the best example of this model.
• Physical product tie-ins have emerged in e-commerce-forward apps. Think of an app offering recipe planning that links directly to grocery orders. Or a design tool that lets users print and ship their work. Some meditation apps even sell journals, candles, or calming teas. The app isn’t just software — it’s a launchpad for real-world merchandise. Physical is important for users, and even Apple launched an official online retail in Saudi Arabia for its customers.

There isn’t just one way this works. In reality, the money comes from various places — different users, behaviors, systems. A well-planned free app can function like a business storefront. The product may seem free, but the monetization plays out in the background. Logistics is also important, just like Jumia expanded its delivery service, so remember this if your app has physical goods. People love convenience, and convenience can be monetized.