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TL;DR
Steven Cravotta walks every monetization model with real revenue examples, and argues the biggest apps combine several. His own pick: subscriptions (Puff Count, $44k/mo), and if starting over, a combination.
The models
- One-time purchase (paid app) — outdated; only works with a strong brand or physical product. Shadow Rocket ($70k), Cloud Baby Monitor ($9k), FL Studio ($90k).
- Subscription / SaaS — the current standard; free download → free trial → monthly/annual. Builds recurring enterprise value. My Fitness Pal ($14M/mo), Flo ($10M/mo) — both A/B test prices (and likely price by geography).
- In-app purchases — coins, power-ups, filters. Best for high-DAU apps. Clash of Clans ($9M), Candy Crush ($62M on $1–$8 purchases), Forest ($100k).
- Advertising — banner/rewarded video via AdMob, AppLovin, Iron Source using a real-time-bidding waterfall. Needs high DAU. Cravotta’s early games Grid and Wordle. (Sensor Tower undercounts ad revenue.)
- Affiliate / referral — Hopper (flights/hotels), LTK (fashion) earn a % of user spend on third-party sites.
- Data licensing — sell anonymized data (legally risky). Waze (to governments/city planners), Rakuten, Rocket Money (bank/purchase data to fintechs).
- Combination — the most profitable apps stack methods: Tinder ($80M: subs + IAP + ads), TikTok ($144M), Picsart ($6M), Duolingo ($40M), Wordle.
Takeaway
- Match the model to the app type. Subscriptions build the most enterprise value; combine where you can.
Related
- mobile-app-monetization — the subscription/paywall deep dive
- steven-cravotta · studied-100-viral-ai-apps-printing