The six models, ranked by indie-fit
| Model | Best for | Realistic revenue | Effort |
|---|---|---|---|
| Subscriptions | Tools people use weekly+ | $3–15/user/mo × 2–5% conversion | Medium (IAP infra) |
| Freemium + one-time unlock | Utilities, single-job apps | $5–30 once × 2–8% | Low-medium |
| In-app purchases (consumable) | Games, credits-based apps | Varies wildly | Medium |
| Ads | High-volume, low-intent apps | ~$5–20 RPM (per 1k impressions) | Low |
| Paid download | Almost nobody in 2026 | Suppresses installs ~10× | Low |
| B2B licensing | Niche pro tools | $20–200/seat/mo | Sales effort |
1. Subscriptions — the default for a reason
The dominant model for indie apps, and the one behind most $1k–10k/month solo stories. The math that matters: downloads × trial-start rate × trial-to-paid rate × price. Typical healthy funnel for a niche utility: 1,000 downloads/mo × 8% start trial × 40% convert × $6/mo ≈ $190/mo added recurring revenue per thousand downloads — compounding monthly as the base grows.
Rules that move the number: anchor an annual plan (most revenue comes from it), gate the repeat-use value not the first-run experience, and put the paywall after the user has felt the value once (a habit-tracker pattern: paywall at the 4th habit, not the 1st).
Implementation on mobile: Apple/Google require their in-app purchase rails (15–30% commission). The standard stack is RevenueCat over StoreKit/Play Billing — see the full Expo setup guide.
2. Freemium with one-time unlock
“Pay $12 once, unlock everything.” Users love it; your revenue doesn’t compound. Right choice when your app does one job that doesn’t accrue data over time (a converter, a scanner, a calculator). Wrong when usage is habitual — you’re leaving subscription money on the table.
3. Consumable in-app purchases
Credits, tokens, extra generations. Standard for AI-feature apps where each use costs you API money — price credits above your inference cost and the model self-balances. Watch the floor: Apple takes its cut of every pack.
4. Ads
The math nobody does before choosing ads: at a $10 RPM, 100,000 monthly sessions earn roughly $1,000. If you don’t have a realistic path to six-figure session counts, ads are a distraction that uglifies your product. Where they work: casual games, utilities with daily open patterns. Rewarded video (watch ad → get perk) monetizes best and annoys least.
5. Paid downloads
Mostly dead. Charging $2.99 upfront cuts installs by roughly an order of magnitude versus free-with-IAP. Survivors: apps with external reputation (a known brand, a viral moment) or pro audiences who research before installing.
6. B2B licensing — the overlooked one
If your app serves businesses (see the niche B2B ideas), don’t monetize users — monetize the business: per-seat or per-location pricing, invoiced. Twenty gyms at $50/month beats five thousand consumers at 2% conversion, and churn is far lower. The app store commission often doesn’t even apply if billing happens on the web for business accounts (post-2024 rules allow more of this than most founders realize — check current guidelines per platform).
Picking your model in 60 seconds
- Used daily/weekly, accrues data → subscription
- Single job, occasional use → one-time unlock
- Each use costs you API money → credits
- Massive casual audience, low willingness to pay → ads (rewarded)
- Users are businesses → B2B seats
The uncomfortable truth about the revenue equation
Monetization model is the smallest variable. Revenue = audience × value × model, in that order. A mediocre model on an app people love beats a perfect paywall on an app nobody opens. Which is the actual 2026 unlock: since building now costs ~$150 instead of $40k, you can afford to find the audience+value fit empirically — ship a niche app, watch retention, add the paywall once people return without being pushed.
Have the idea, need the app?
Build it free at shipnative.dev — working React Native app with a paywall screen included, ready for your RevenueCat keys.