- Ruth Eschenheimer
- 2 days ago
- 7 min read
Building an app is a great way to connect with your audience and open up new revenue streams. This guide walks you through the entire process, from your initial idea to launching and monetizing your creation.
We’ll cover the essential steps to bring your app to life. You’ll learn how to plan your app, choose the right ai app builder to create it and explore different strategies for making money from it. It’s all about turning your vision into a real, functional app that people will want to use.
TL;DR: How to build an app and make money
An app gives your business a dedicated home on your customers' devices. To meet your goals, your app should include features that make life easier for your users, like booking services, shopping or accessing exclusive content.
How to build an app and make money with it in 6 steps
Turning an idea into a profitable app is a straightforward process when you break it down. Following these steps will help you stay organized and focused as you move from one stage to the next.
01. Define your app's purpose
Before you get into the weeds with your app design or development, you need a clear vision. What is the main goal of your app? Think about what you want to achieve. Are you looking to increase sales, improve customer loyalty or provide a unique service? Your purpose will guide every decision you make. especially if the aim of your app is to make money and not just improve a specific service for your users.
Next, consider the problem your app solves for your users. A successful app offers real value. It might save users time, entertain them or make a task simpler. Clearly identifying this problem and its solution will form the foundation of your entire project and make it much easier to market later. It will also give it a value proposition that users will be more likely to pay for.
02. Research your market and audience
Understanding the landscape in which you plan to market and sell your app is crucial before you begin building an app with AI. Start by looking at other apps in your niche. What features do they offer? What do their user reviews say? This analysis will reveal what works well and where there are gaps you can fill. It’s not about copying competitors, but about learning from them to make your app better, including more valuable or affordable.
At the same time, get to know your target audience. Who are you building this app for? Create user personas that detail their demographics, behaviors and pain points. You can gather this information through surveys or by talking to potential users. Knowing your audience ensures you build something they’ll actually want to download and use and pay for.
03. Plan your app's features and monetization
With your purpose and audience defined, it's time to map out your app. List all the features you want to include, then prioritize them. Start with the "must-haves"—the core functions your app needs to work. You can always add the "nice-to-haves" later in updates. This keeps your initial build focused and manageable.
Now, think about how your app will make money. You could sell products, offer paid subscriptions for premium content, charge a one-time download fee or run in-app ads. Some apps use a "freemium" model, where the basic app is free but users can pay for advanced features. Choose a strategy that aligns with your app's purpose and what your users will find reasonable.
Most profitable apps rely on one or a combination of these three core strategies:
Freemium model
This is the most popular model uses in app development, Users download the app for free but you lock specific advanced features behind a paywall.
Works best for: Productivity tools, photo editors and dating apps.
How it works: Your app might let users edit photos for free but include a watermark that can only be removed if they pay. This is known as a gated featured. Or you might limit usage to free users, lets say on a dating app they get only 5 scans of available candidates a day but unlimited access will require paying for.
In-app advertising
If your app has a lot of users who don't want to pay, so the best idea is to monetize their attention. For example, users can choose to watch a 30-second ad in order to get a reward in the app. This is a popular method used in games. Another option is native ads, ads that look like regular content in your feed (common in social media or news apps).. They're less intrusive and have higher click rates.Or interstitials, full-screen ads that pop up during natural breaks in app usage, say between game levels.
Subscriptions
Subscriptions are a great way to monetize an app because they're stable and predictable income.
Works best for: Content apps, think Netflix and fitness apps.
How it works: Charge a smaller monthly fee over a larger one-time purchase.
In-app purchases
These can be things like consumables used in the game, virtual currency or game health packs as examples. Or it could be what's often referred to as non-consumables — paying to remove ads permanently or unlock specific levels.
Affiliate marketing
This involves promoting other businesses products inside your app. Lets say you have a travel app and you include in it affiliate links to buy suitcases from a suitcase seller and for every sale made through the link, you make a commission.
Sponsorship
If you have a specific niche audience (e.g., cyclists), a brand (e.g., a bike helmet company) might pay you to feature their logo or offer a branded challenge within your app.
Transaction fees
If your app connects buyers and sellers (like Uber or Etsy), you take a small percentage of every transaction that happens on your platform.f
Strategy | Best for | Pros | Cons |
Freemium | Tools and utilities | Low barrier to entry; high download rates | Hard to convert free users to paid |
Ads (IAA) | Games and social | Passive income; works with free users | Can annoy users; requires huge traffic |
Subscription | Content and fitness | High Lifetime Value (LTV); stable income | High churn (cancellations); hard to sell upfront |
Paid app | Pro Tools (B2B) | Immediate revenue per user | Very low download volumes |
Tips for monetization of an app
You can't monetize a user who uninstalls the app after one day. Focus on keeping users engaged before you aggressively push ads or paywalls. Monetization of an app is more of a long term effort.
The trend for app monetization in 2026 is mixed models. For example, offer a free app with ads but allow users to pay a subscription to remove them. This captures revenue from both paying and non-paying users.
You can't make money if no one finds your app. Optimize your title, keywords and screenshots to appear in search results.
04. Choose a professional app builder
You don't need to be able to code to build a professional app. App builders, like Base44, provide the tools to create a fully functional app with a custom design. They handle all the technical work behind the scenes, so you can focus on creating a great experience for your users, that can then be monetized.
Learn more about how to use an AI app builder like Base44.
When choosing an app builder, look for one that offers flexibility and control. You'll want a solution that lets you design your app to match your brand and integrate the features you planned. For instance, an app builder can help you create a custom branded app without writing a single line of code, giving you a powerful tool to engage your community and grow your business.
Explore this roundup of the best ai app builders.
05. Design your app's user experience
A good app is easy and enjoyable to use. The user interface (UI) is what your users see—the buttons, text and images. The user experience (UX) is how it feels to navigate through it all. Your goal is to make the journey from opening the app to accomplishing a task as smooth as possible.
Start by creating a simple wireframe or sketch of your app's layout. Think about how users will move from one screen to the next. Keep the design clean and uncluttered. Use colors and fonts that match your brand, and make sure all buttons and menus are intuitive. A strong design builds trust and keeps people coming back.
06. Build and test your app
Now for the exciting part: bringing it all together. Using the app builder you chose, you’ll start assembling your app. Add your content, set up your features, and apply your designs. Follow the plan you created, building out the core functions first.
Thorough testing is a step you can't skip. Use the app yourself and ask friends or colleagues to try it. Click every button, test every feature and look for anything that’s confusing or broken. This feedback is invaluable for finding and fixing bugs before your app goes live, promising a positive experience for your first users.
You'll also need to market and promote your app because one without users, is also one that won't make any money. The main app monetization strategies need users.
How to build an app and make money FAQ
How much does it cost to build an app?
The cost to build an app can vary widely. Hiring a development agency can cost tens of thousands of dollars. However, using a no-code app builder like Base44 is a much more affordable option, often available for a monthly subscription fee or you can build an app for free. These platforms give you the tools to create a professional app for a fraction of the cost of traditional development.
How do free apps make money?
Free apps typically generate revenue through a few common strategies. Many use in-app advertising, where they get paid to show ads to their users. Others use a "freemium" model, offering a basic version for free and charging for premium features or content. Some also make money through in-app purchases, like selling digital goods or services.