How the 11 Most Profitable Apps Make Billions
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February 21, 2025
What if we told you that a single app could generate more revenue than an entire industry? It’s happening right now. TikTok pulls in $14 billion a year. Mobile games? $10M+ per day. Apps aren’t just a market—they’re an unstoppable revenue machine.
But here’s the thing—most startups never get close to those numbers.
What separates the apps that rake in billions from those that barely break even? Is it the business model, the user engagement, or just pure luck?
At Ptolemay, we’ve helped founders turn ideas into successful, high-growth apps (see our cases). But we’ve also seen too many startups burn through hundreds of thousands on development—only to realize too late they have no plan to acquire paying users.
The winners think about monetization, audience, and distribution from day one—not after launch.
Here’s what actually works:
- A niche AI-powered feature that became the core differentiator, driving retention and boosting LTV.
- An influencer-led pre-launch campaign that doubled the user base within two months, recouping marketing costs in just 90 days.
- A smart pricing shift from monthly to 3- and 6-month subscriptions, reducing churn by 40%.
In this guide, we’re breaking it all down—from the most profitable app categories and proven revenue models to the real numbers behind successful apps. Whether you’re building your first app or scaling an existing one, we’ve got the insights to show you what works—and what doesn’t.
Want to know if your app is set up for success? Get a tailored breakdown of costs and features with our AI-powered app calculator—and make smarter decisions before you start building.
The Apps That Are Actually Making Billions
Some apps don’t just make money—they dominate their industries. Here’s what they’re doing right.
Top Grossing Apps (2024)
Discover the Top 6 Most Expensive Apps on the App Store – and Why Users Pay Premium.
How Do Free Apps Make Money?
One of the biggest misconceptions among startup founders is that a free app can only make money if someone eventually buys it. In reality, the most profitable apps—TikTok, Instagram, Candy Crush, Spotify—are all free to download, yet they generate billions in revenue.
We’ve worked with numerous startups and have seen firsthand which monetization models actually work and which ones waste traffic with no return. Let’s break down how to monetize a free app in a way that keeps users engaged while ensuring stable revenue.
1. Advertising: Effective, But Only When Done Right
Advertising is the most obvious revenue model, but here’s what many startups overlook:
- Ads only work at scale. If your app has just a few hundred users per day, ad revenue will be minimal. Either focus on growing your user base or consider alternative revenue streams.
- Don’t overdo it. If ads feel intrusive, users will uninstall your app. A couple of well-placed banners are better than excessive pop-ups.
- Native ads perform best. Integrating ads into the user experience—like Instagram’s sponsored posts—yields higher engagement and better revenue.
Hyper-casual games like Flappy Bird and Helix Jump generate hundreds of thousands of dollars daily from ads, thanks to millions of downloads. If your model relies on advertising, study their approach.
2. In-App Purchases (IAP): Users Will Pay, But Not Immediately
"Let’s sell features inside the app!" sounds great in theory, but here’s the reality:
- Most users won’t pay right away. On average, only 1-3% of users make in-app purchases. The key is engagement first, monetization later.
- Give users a reason to pay. If they can fully enjoy the app without spending money, they won’t pay. Offer exclusive perks (such as rare in-game items) or added convenience (like ad removal).
- Avoid selling "essential" features. If the app is unusable without payment, it’s not a monetization strategy—it’s a paywall. Be upfront about what’s free and what’s premium.
Candy Crush makes millions daily by selling extra moves and boosters. Users don’t have to buy them, but when they’re stuck, they’re willing to pay $1.99 to continue playing.
3. Subscriptions: The Dream Model, But It’s Not for Everyone
Many startups dream of a steady, recurring revenue stream, but in reality:
- The subscription must offer real value. If the only benefit is "no ads," that’s a weak proposition. Premium features should provide a clear advantage over the free version.
- Retention matters more than acquisition. Free trials often convert well, but if users don’t find ongoing value, they’ll cancel. The key is delivering long-term engagement.
- Pricing should match the pain point. Spotify charges $9.99/month to remove ads and improve audio quality—users perceive that as fair. Your app must justify its cost.
Example: Duolingo Plus. The free version works fine, but for $6.99/month, users get unlimited lessons, offline access, and no penalties for mistakes. It’s about convenience, not restriction.
4. Hybrid Models: Combining the Best of Everything
The most profitable apps don’t rely on a single revenue model. They combine multiple monetization strategies:
- Freemium + Ads – Free version with ads, paid version without ads (YouTube, Spotify).
- Ads + In-App Purchases – Users can either watch ads or pay for extra features (mobile games).
- Subscriptions + One-Time Purchases – Some premium features require a single purchase (creative tools like Canva).
YouTube makes billions from ads, but also offers YouTube Premium, which removes ads and provides additional features. Users choose whether to pay with their time (watching ads) or their money (buying a subscription).
Choosing the Right Monetization Strategy
- If your app targets a broad audience → Advertising. Best for social media, entertainment, and casual games.
- If your app solves a real problem → Subscription. Works well for B2B, EdTech, and productivity apps.
- If your app offers a convenience factor → In-App Purchases. Great for gaming, content platforms, and creative tools.
- If you want a stable revenue stream → Hybrid model. The more diversified the monetization strategy, the more resilient your business.
The most profitable apps don’t just generate revenue—they strike the perfect balance between monetization and user experience.
What Type of Apps Make the Most Money? Insights & Trends
If you're building an app, you're not just developing a product—you’re stepping into a business where monetization defines survival. The difference between an app that burns through funding and one that generates sustainable revenue often comes down to choosing the right category and understanding where the money actually flows.
We’ve worked with startups that launched in the wrong niche and struggled, while others rode market trends to profitability. Let’s break down where the real money is and what insights actually matter when planning your app’s financial model.
Fintech – Users Trust Apps with Their Money
Banking, investing, payments—if users trust an app enough to move their money through it, the revenue opportunities are massive. Whether it’s transaction fees, lending, or crypto trading, fintech apps monetize every action.
Users expect to pay fees on fintech platforms, but conversion depends on trust. The onboarding experience and compliance with regulations are just as critical as the app’s core functionality.
Who’s making money: Cash App, Revolut, Robinhood, PayPal
Social Media – The Attention Economy at Scale
No one pays to use social apps, yet they generate billions. The secret is high engagement + targeted ads. The more time users spend scrolling, the more ad impressions an app can sell.
Social apps that succeed today aren’t just platforms—they’re marketplaces. TikTok doesn’t just serve ads; it monetizes content creators, sells virtual gifts, and runs a full-scale e-commerce ecosystem.
Who’s making money: TikTok, Instagram, Facebook, Twitter
E-Commerce & Marketplaces – Transaction-Driven Revenue
Marketplaces don’t sell products, they sell transactions. Every completed order generates a commission, and the most profitable platforms own the entire transaction process, from payments to logistics.
Success isn’t about the number of products listed; it’s about removing friction. The highest-grossing e-commerce apps invest heavily in seamless checkout flows and hyper-personalization.
Who’s making money: Amazon, Shopify, Shein, eBay
Media & Streaming – The Subscription Empire
Content platforms went from ad-driven to subscription-first. Why? Recurring revenue is predictable, and premium subscriptions lock in long-term user value.
Free tiers must be good enough to attract users but frustrating enough to convert them. Platforms like YouTube and Spotify rely on ads to push users toward paid versions.
Who’s making money: Netflix, Disney+, YouTube Premium, Spotify
Mobile Gaming – Microtransactions Done Right
Gaming dominates global app revenue for one reason: players willingly pay for in-game upgrades. The most profitable games aren’t the ones that sell for $5.99 upfront—they’re the ones that are free but designed for constant spending on cosmetics, power-ups, and season passes.
The biggest in-app spenders aren’t casual players. Mobile games optimize for "whales"—users who spend hundreds or even thousands on in-game purchases. The challenge is keeping them engaged long-term.
Who’s making money: PUBG Mobile, Genshin Impact, Honor of Kings, Candy Crush
If an app isn’t handling transactions, monetizing engagement, or offering a subscription model, profitability is an uphill battle.
iOS vs. Android: Which Platform Makes More Money?
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When launching an app, the instinct is often to build for both iOS and Android from day one. But here’s what many founders realize too late: platform choice isn’t just about reach—it’s about revenue dynamics. The way users interact with apps, their willingness to pay, and even the ad performance vary significantly between these ecosystems.
We've seen startups that spent months optimizing for Android, only to find that most of their paying users came from iOS. On the other hand, ad-driven businesses often thrive on Android’s sheer volume. So how do you decide where to focus first?
iOS: Higher Revenue Per User, But a Smaller Audience
If you’re building an app that relies on subscriptions, premium features, or in-app purchases, iOS is almost always the stronger bet.
Why iOS converts better:
- iPhone users spend more. Studies consistently show that iOS users spend 2-3x more on apps than Android users.
- Subscription models perform better. Users on iOS are more likely to pay for recurring services, making it ideal for B2B apps, fitness platforms, and premium content.
- Stronger ad performance. Apple’s ecosystem is more restrictive but also reduces fraud and improves advertiser trust, leading to higher CPMs for ad-driven apps.
Duolingo’s CEO revealed a surprising statistic: 60% of Duolingo’s users are on Android, but 60% of its revenue comes from iOS. Despite having a smaller user base, iPhone users spend four times more than their Android counterparts. This trend is common across apps with paid features—Android brings the numbers, but iOS users are more willing to pay.
Best for: Subscription apps, premium in-app purchases, B2B services.
Android: Massive Scale, But Lower ARPU
Android’s strength is in scale. It dominates global market share, especially in emerging markets where price-sensitive users outnumber high-spending ones. If your app relies on high-volume engagement rather than direct user spending, Android is where you’ll find the numbers.
Why Android wins on reach:
- Larger audience = more ad revenue. Since most Android users avoid paying for apps, ad-based models tend to perform better. More users = more impressions = more revenue from advertisers.
- Stronger penetration in emerging markets. If your app is targeting India, Southeast Asia, or Latin America, Android’s dominance is hard to ignore.
- More downloads, but lower spending. Spacetime Studios, the developer of Pocket Legends, found that Android users were 30-50% less profitable than iOS users, despite higher activity levels.
Best for: Ad-supported apps, global expansion, high-volume user acquisition.
iOS vs. Android: Which App Costs More to Build? A Startup-Friendly Cost Breakdown. Read now
The Smart Approach: Where Should Startups Focus?
Choosing between iOS and Android isn’t a question of “either-or”—it’s about matching your revenue model to the right platform.
- If your app relies on subscriptions or in-app purchases → Prioritize iOS. Higher conversion rates mean more immediate revenue.
- If your model is ad-driven → Android is the long-term bet. The sheer number of users makes up for lower individual spending.
- If you’re building a hybrid model → Optimize iOS for high-value users and Android for traffic. Many top apps monetize iOS users first, then scale their audience on Android.
Startups that understand these platform differences early on avoid costly mistakes and maximize their revenue from day one. The best strategy isn’t just to build for both—it’s to know where the money is actually coming from.
How Much Can You Earn From an App? Key Success Factors
The harsh reality of the app business is that most apps don’t make money. Not because they aren’t well-designed or useful, but because their monetization doesn’t scale. A few thousand downloads mean nothing if users don’t stick around long enough—or worse, never pay for anything.
We’ve seen startups spend six figures on acquisition only to realize they were attracting the wrong users. Others ignored monetization at launch, thinking they’d "figure it out later," and ran out of cash before ever proving revenue. Meanwhile, the apps that actually make millions? They focus on the right metrics from day one and adapt to what users are willing to pay for.
So, how much can an app actually earn? The answer depends on retention, revenue per user, and how efficiently you acquire users.
How Much Money Can You Make If You Own an App? See Real Numbers and Profit Strategies.
Retention: The Foundation of Any Profitable App
Most users delete an app within 7 days of downloading it. The few apps that break through? They build habits. Retention is what turns a one-time download into a long-term revenue stream.
- The baseline: A strong app keeps at least 25-30% of users after 30 days. The best apps? 50%+ retention.
- Why it matters: If users drop off quickly, ad revenue dries up, and subscription models never take off.
Apps like Duolingo and Tinder use streaks, gamification, and push notifications to keep users hooked. If your app isn’t giving people a reason to come back daily, they won’t.
Revenue Per User: More Important Than Total Downloads
Total users don’t matter if they aren’t spending money. What actually moves the needle is ARPU (average revenue per user).
- Ad-driven apps: Expect $1-2 per active user per month.
- Subscription apps: Can hit $5-20 per user per month.
- Marketplace & fintech apps: Earnings vary but tend to scale with transactions, not just user count.
High-ARPU apps like Netflix segment users by region and adjust pricing accordingly. A one-size-fits-all approach to monetization leaves money on the table.
Lifetime Value (LTV): The Ultimate Profitability Metric
LTV is what separates short-term hype from sustainable revenue. It answers the key question: How much is a user worth over their entire time in the app?
- LTV = ARPU × average user lifespan
- A great LTV: At least 3-5x the cost of acquiring a user (CPI).
Spotify knows that if they get a user into the premium trial, there’s a high chance they’ll stay for years, driving long-term value.
How to Avoid Burning Money on Marketing
Many startups assume that a big ad budget = fast success. The reality? Paid acquisition is a black hole if you don’t know your numbers.
The Wrong Approach: Spending Big Without a Retention Plan
If your CPI (cost per install) is $5, but your ARPU is only $2, you’re losing money. 90% of new users never convert—unless your onboarding strategy is rock solid.
Apps like Cash App and Dropbox hacked their way to viral growth using referral incentives instead of paid ads. Instead of throwing money at Facebook and Google, they built network-driven growth loops.
Use Paid Ads for Retargeting, Not Just Acquisition
Retargeting campaigns cost 2-3x less than acquiring new users. Bringing back an inactive user is cheaper than finding a new one.
Spotify runs aggressive retargeting for inactive users with “3 months for $0.99” deals. The logic? Getting users back in the habit increases long-term conversion to full-price subscriptions.
Test Monetization Early—Don’t Wait Until "Later"
The best apps experiment with pricing early to see what users are willing to pay for. Subscription models should test free vs. paid feature sets from day one.
Tinder introduced Tinder Plus early, proving users were willing to pay for premium features like unlimited swipes.
What’s the Smartest Revenue Strategy in 2025?
The mobile app economy is shifting. What worked five years ago doesn’t guarantee success today. Here’s what’s changing:
Ad-Only Models Are Struggling
Privacy changes (like Apple’s ATT updates) have made ad tracking less effective, driving lower CPMs. Apps that depend solely on ads are losing revenue, forcing many to add subscriptions or in-app purchases. YouTube pushed YouTube Premium hard as ad-blockers cut into ad revenue. Subscription diversification is key.
AI-Driven Personalization Boosts Revenue
Apps that use AI for personalized recommendations keep users engaged longer. The more tailored the experience, the more users spend. Duolingo’s AI adjusts lesson difficulty based on user behavior, making learning addictive—and keeping users subscribed longer.
Super Apps & Ecosystem Monetization Are the Future
Super apps like WeChat, Grab, and TikTok Shop are blending social, payments, and e-commerce to extract maximum LTV. TikTok Shop is moving TikTok beyond just ads—it now generates billions through integrated e-commerce.
How to Assess Your Chances of Success
The dream is to hit millions in revenue fast, but let’s talk real numbers.
- The average app makes between $1,000 and $10,000 in its first year.
- Only 1% of apps ever hit $1 million in annual revenue.
- The top 100 grossing apps generate at least $10 million per month.
For context, TikTok lost billions before it became profitable, and even apps like Uber needed years of funding before turning a profit. The key lesson? Most startups overestimate short-term revenue and underestimate long-term scaling challenges.
Why Most Apps Struggle to Monetize Early
Many startups assume that growth comes first, monetization later. This is a huge risk because:
- Funding doesn’t last forever. Relying on VC money while delaying revenue puts startups under pressure to pivot fast.
- Not all users are equal. Attracting millions of free users means nothing if they won’t convert.
- Retention matters more than acquisition. A small, paying audience is more valuable than a large, disengaged one.
How to Set Realistic Revenue Goals
- If your app is ad-driven, expect around $1-2 per user per month.
- If subscription-based, a well-optimized model can bring in $5-15 per user per month.
- Marketplace or fintech apps need volume—but LTV can be 10-100x higher.
The best apps validate monetization early, even if it means slower user growth.
How to Reduce the Risk of Failure
Even the best ideas fail without execution. The apps that succeed are the ones that adapt, iterate, and optimize monetization as they grow.
1. Pivot Early If Monetization Isn’t Working
Many apps start with one idea but shift based on user behavior.
- Slack started as a gaming tool before pivoting into business messaging.
- Instagram originally focused on check-ins before doubling down on photos.
- TikTok evolved from a lip-syncing app into a global entertainment platform.
If your users engage with something unexpected, shift your model to match it.
2. Test Monetization Before Scaling
Too many startups think, “We’ll figure out revenue later.” That’s a mistake.
- Offer a paid feature early—even if only 1% of users convert, you’ll get critical data.
- Run small paid ad tests—if acquisition costs are too high, it’s a red flag.
- Track retention metrics over time—monetization works best when engagement is high.
If you wait too long to test revenue, you might find out too late that users won’t pay.
3. Balance Free & Paid Features Intelligently
The best apps make spending feel optional but desirable.
- Duolingo: Free learning with premium perks (offline mode, no ads).
- Tinder: Basic features are free, but paid upgrades enhance the experience.
- Spotify: Free users get ads, but premium removes them and adds more value.
A paywall that comes too early kills growth. A paywall that comes too late kills revenue.
Most Profitable Apps: FAQ
How do free apps make money if they don’t charge users?
Free apps generate revenue through ads, in-app purchases, subscriptions, and affiliate marketing. For example, TikTok earns billions by integrating ads and virtual gifts, while Candy Crush profits from microtransactions. Many successful apps use a freemium model, offering premium features to paying users while keeping the core experience free.
Which app monetization model is the most profitable in 2025?
The most profitable monetization model in 2025 combines ads, in-app purchases, and subscriptions. Hybrid models, like YouTube’s ad-supported free tier and YouTube Premium, maximize both reach and revenue. Gaming apps also excel, with Honor of Kings making over $2.6 billion annually from in-game purchases.
What’s the average revenue per user (ARPU) for top apps?
Top apps have an ARPU ranging from $1–$10 per month, depending on their model. Subscription-based apps like Spotify average $5–$10 per user, while ad-driven apps like Facebook generate around $1–$3 per user. In-app purchases drive even higher ARPU in mobile games, with some players spending hundreds monthly.
Can a startup really make millions with a mobile app?
Yes, startups can make millions if they find product-market fit and scale effectively. For instance, Duolingo started small but now generates over $250 million annually from subscriptions. Success depends on choosing a profitable niche, engaging users, and implementing the right monetization strategy from day one.
What’s the biggest mistake startups make when trying to monetize their app?
The biggest mistake is prioritizing monetization over user experience too early. Forcing ads or paywalls before building engagement often leads to high churn. Instead, successful apps like TikTok and Instagram first focus on retention and then introduce monetization through ads, in-app purchases, and premium tiers.
Which types of apps make the most money?
Social media, fintech, e-commerce, and gaming apps dominate revenue rankings. TikTok makes over $14 billion annually from ads, while mobile games like Candy Crush generate billions through microtransactions. Fintech apps like Cash App monetize transactions, proving that payment and investment apps are highly profitable.
Are gaming apps the most profitable category?
Yes, mobile gaming is the highest-earning category, with top games like Honor of Kings and PUBG Mobile generating billions. The industry thrives on in-app purchases, where dedicated players spend on virtual goods. In 2023, mobile games accounted for over 60% of global app revenue, outpacing social media and streaming.
Do subscription-based apps make more money than ad-supported ones?
Subscription apps generate more consistent revenue, but ad-supported apps scale faster. Netflix and Spotify rely on subscriptions, while Instagram and TikTok make billions from ads. Hybrid models like YouTube (ads + Premium) and Duolingo (free + Plus) combine both approaches for maximum profitability.
What are the fastest-growing app markets in 2025?
Emerging markets like India, Southeast Asia, and Latin America are seeing explosive app growth. Subscription models and fintech solutions are thriving due to increased smartphone adoption. For example, India’s UPI payments fueled Cash App-style fintech startups, making them some of the most lucrative apps in these regions.
Are fintech apps really as profitable as everyone says?
Yes, fintech apps like PayPal, Revolut, and Cash App generate billions by charging transaction fees and offering financial services. Cash App alone made over $3 billion in 2023 from Bitcoin trading and instant transfer fees. Fintech success depends on trust, security, and seamless user experience.
How much does an average successful app make per month?
A successful app can generate anywhere from $10,000 to $1 million+ per month, depending on scale and monetization. Small subscription-based apps might earn $50,000 monthly, while top games like Clash of Clans make over $1 million per day. The key factor is high user engagement and effective monetization.
Should I launch on iOS or Android first to maximize revenue?
iOS users spend more, making it ideal for paid apps and subscriptions, while Android has a larger global audience, better for ad-driven apps. Duolingo, for example, earns 60% of its revenue from iOS despite having more Android users. If revenue per user matters, start with iOS; for mass adoption, prioritize Android.
Conclusion: Build the Most Profitable Apps with Smart Planning
For startup founders, true success lies in preparing your app’s roadmap well before launch. Our experience shows that integrating marketing and development strategies early on can make all the difference—a case in point being an influencer who doubled his audience by engaging them two months ahead of launch.
By using our AI-powered estimation tool, you gain a clear, expert analysis of your project’s budget, timeline, features, design approach, tech stack, team composition, and compliance needs. This informed perspective will empower you to build a profitable app with confidence and clarity.
Ready to set the foundation for your next big success? Try it now at estimation.ptolemay.com
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