How to make money with your Android app

Building a great Android app takes time, creativity, and persistence. But once your app is live, there's one question every developer eventually faces: how do I actually make money from this?

Android developers often struggle with monetization more than iOS developers. Not only are Android users statistically less likely to pay for apps, but implementing in-app purchases or subscriptions comes with technical and operational hurdles that can overwhelm solo devs or small teams.

This guide breaks down every major Android monetization model that brings in recurring revenue, explains why some apps succeed while others fail, and walks through practical implementation strategies using RevenueCat.

[Disclaimer, I work for RevenueCat and this article has a section outlining why you should use RevenueCat to handle in-app purchases. You can of course implement monetization in your app in multiple ways. However if you decide to go with RevenueCat, and need help setting up, don't be afraid to get in touch.]

Why monetizing an app is hard, especially when it's on Android

There are three main challenges developers face when trying to earn money from Android apps.

1. Users expect free apps

Unlike iOS users, Android users have been conditioned to expect free experiences. Many come from markets where disposable income is lower, and a large portion of the Android ecosystem runs on ad-supported or open-source apps.

Looking at top selling Android phones, which are usually priced in a few hundreds dollars, it's no wonder most users expect apps in their phones for free. When compared, a 50 dollar yearly subscription feels way more expensive on a Samsung A16 costing 150 dollars, than on the cheapest iPhone (16E) priced at 600 dollars.

Possibly for this reason developers on Android often see one-star reviews the moment they move previously free features behind a paywall. It's more than likely that these reviews come from users who genuinely like the app, but resent being asked to pay. Winning over these users requires convincing users your app is worth supporting.

2. Implementation complexity

Monetizing users is hard, but adding monetization your isn't easy either. Even adding in-app purchases or subscriptions isn't a plug-and-play process, often requiring:

• A backend service for validating receipts.
• Logic for managing active and expired subscriptions.
• Handling user authentication and cross-device restoration.
• Keeping up with Google Play Billing API changes.
• Navigating regulatory requirements like EU subscription rules.

It is not uncommon to come across large teams in big companies, whose sole purpose is to develop and maintain the in-app purchase infrastructure of the company's Android app. Google Play Billing provides a lot of functionality out of the box, but you still need to build a lot around that API to provide a great purchasing experience.

Even if you build it perfectly once, you'll need to maintain it as well, which will most likely turn out to be even bigger time sink. Every API change or edge case can break your monetization flow and cost you real money. For indie developers, this kills a lot of momentum from delivering features, not to mention the way it eats up motivation, when you're forced to build "boring stuff" (you have to be a real sicko to enjoy working with Google Play Billing API's).

3. Android apps earn less on average

Combing through the data of RevenueCat's State of Subscription Apps highlights the difficulties of monetizing Android apps through subscriptions. Even with similar user bases, Android apps tend to earn less than their iOS counterparts:

Google Play's trial adoption lags across all percentiles, with a P90 of just 14.2% compared to 22.6% on the App Store, highlighting a gap in user trial engagement.

Fewer people start trials on Google Play than on the App Store. Even at the high end, only about 14% of users start a trial on Google Play, compared to roughly 23% on the App Store. Revenue per install is also significantly lower on Android apps than iOS in general. However top performers on Android do see comparable revenue to iOS.

So even though monetizing Android apps is certainly possible, it is way way harder than on iOS. Boringly the playbook for making money is same on both platforms: building high quality apps, addressing a real need, and having the right monetization strategy. Let's look at the last point in the next section.

Options for monetizing on Android

Right off the bats: there is no single perfect monetization method. What works, when and how, depends on a variety of things. Successful apps often combine several different strategies. Here's how to think about each approach.

1. Advertising: simple but scale-dependent

Everyone on Android knows ads. As an iOS person it feels like every Android app has ads in it. When l've done roundtables in Android conferences, it seems that more devs have ads in their apps than in-app purchases. Ads are the easiest way to start earning money. Integrate AdMob, AppLovin, or another ad network, and you'll begin to see small amounts of revenue per user.

However, the problem with ads is the scale they require to turn any meaningful revenue. If you take the 1,000 true fans hypothesis and make those fans pay in the form of ad clicks, you're making only between $1 and $10 every month.

If your app has a viral or casual audience - games, wallpapers, entertainment - ads can work well. For productivity or paid tools, they tend to feel intrusive.

Pros:

• Easy to implement.
• Works for completely free apps.
• Passive, recurring income.

Cons:

• You need massive user volume to make meaningful money.
• Ads can hurt the UX and damage your brand.
• Doesn't scale well for niche or professional apps.

2. One-time purchases: simple value exchange

Like App Store, Google Play supports consumables and non-consumables; former you can use for recurring revenue, latter for one time unlocks .

• Consumables: Can be purchased multiple times (e.g., extra lives, credits, tokens, tips).
• Non-consumables: Unlock permanent features (e.g., dark mode, ad removal).

Non-consumable purchases don't generate recurring income, and they cap your revenue at the number of users willing to pay once. The mental model of it is similar to that of the old boxed software, where you would release a new version of the app one a year, and people who needed the new features would upgrade. In the time of monthly server costs (few apps can do without a backend), this model just doesn't work anymore.

Consumables can bring you the much needed recurring revenue, but work very poorly for unlocking features. The repeated buying of consumables makes them great for games, where purchasing allows users to continue for example playing by buying additional lives.

3. Subscriptions: the gold standard

Subscriptions power the most profitable apps in the world. They give you predictable, recurring income and create a healthy incentive loop: the more value you provide over time, the longer users stay. They do also come with downsizes. Since everything is now a subscription, it causes subscription fatigue to customers. Dark patterns in getting users to subscribe to for example weekly subscriptions, can

You can structure subscriptions as:

• Weekly: Low commitment, popular in certain lifestyle categories.
• Monthly: Common baseline for SaaS-like apps.
• Yearly: Encourages long-term commitment, often with a discount.

Health, fitness, productivity, and education apps do especially well here. Users perceive them as ongoing journeys - and are more willing to commit for a full year.

The key is delivering consistent value. A subscription app that stops improving or engaging users will quickly see churn.

4. Virtual Currencies: build your own economy

Virtual currencies are a flexible hybrid model. Instead of selling specific features, you sell credits that users can spend inside your app.

Example: if you build an AI-powered photo enhancer, you might sell 100 credits for $5, where each image generation costs 1 credit. You can even combine this with subscriptions subscribers get monthly credits and can top up via consumable purchases.

This approach works beautifully for:

• AI/ML apps.
• Games.
• Creative tools with usage-based costs.

It's also easier to explain: "$5 = 100 actions" is simpler than multiple SKUs with confusing prices.

Hybrid monetization strategies

The best Android monetization setups use multiple layers:

1. Ads + Subscription

Show ads to free users. When someone subscribes, remove the ads. If they cancel, ads return automatically once their entitlement expires. This balances accessibility and profitability.

2. Subscription + Credits

Give subscribers a monthly credit allowance (e.g., 100 exports). Heavy users can top up with one-time purchases. This keeps subscription pricing approachable while letting power users pay more.

The smarter way: let RevenueCat handle the heavy lifting

Instead of spending weeks building billing infrastructure, use RevenueCat. It abstracts away the messy details of in-app purchases, receipts, and entitlements so you can focus on your product.

RevenueCat takes care of:

• Cross-platform billing (Android, iOS, web)
• Receipt validation and subscription status
• Entitlement and access logic
• Paywall experiments and analytics
• Web billing integration

You can start free until you make $2,500/month, then pay only 1% of tracked revenue.

Core concepts in RevenueCat

Offerings

Group different products together — for example, monthly and yearly plans — into "offerings." You can A/B test pricing, swap plans, and make changes remotely without resubmitting your app.

Paywalls

Paywalls are the screens that block content until a user pays. With RevenueCat's Paywall Builder, you can design native paywalls visually, target different countries or cohorts, and localize copy. No webviews or updates needed - everything renders natively and updates instantly.

Entitlements

Entitlements define what a user has access to after purchasing. Instead of checking for specific SKUs in your code, you check for entitlements like pro or premium. This means you can change products, add new tiers, or migrate users without rewriting logic.

Keep more revenue with Web

Google and Apple take 15-30% of all in-app transactions. That's fine early on, but at scale it's a major margin hit.

You can use web billing to reduce this. Let users pay via Stripe or Paddle through your website, then sync their purchases back into the app using RevenueCat. You'll pay around 3-4% in fees instead.

To stay compliant with store rules:

• Don't link directly to external payments in your app (unless allowed by law).
• Use email or in-app messaging to direct users to your web checkout.
• When they complete the purchase, deep-link back to your app and associate the transaction.

This "redemption link" model keeps you within policy while protecting your margins.

You can also use this for win-back campaigns. When a user cancels, automatically send them a discount link via email — e.g., "Come back and save 30%." Since the transaction happens on the web, you don't lose 30% to Google.

Implementation tips for android developers

• Initialize early: Set up RevenueCat in your onCreate() method.
• Use your own user IDs: For apps with logins, pass a unique non-guessable ID. The SDK can merge anonymous and logged-in data automatically.
• Sync across platforms: Subscriptions purchased on Android can unlock features on iOS or web with the same entitlement.
• Design meaningful paywalls: Don't just show a price - highlight benefits, social proof, and the story behind your app.
• Test relentlessly: Try different pricing tiers, paywall copy, and free trial lengths.

A roadmap for android app revenue

1. Build something genuinely useful for free.
2. Add a single paid feature or upgrade path.
3. Introduce a subscription plan that removes limits or unlocks new tools.
4. Test different pricing and messaging.
5. Use analytics to double down on what converts.
6. Add web billing once you've proven traction.

Remember: users don't hate paying — they hate paying for something that doesn't feel worth it. If your app delivers value, solves real problems, and respects users' time, monetization will follow naturally.

Final Thoughts

Making money on Android isn't easy, but it's absolutely possible. The ecosystem is massive, the tools are better than ever, and users are becoming more comfortable with subscriptions and in-app purchases.

The key is to combine smart business models with seamless implementation. Don't fight the complexity - abstract it. Focus your energy on building an app people love, and let the right tools handle the billing details.

Because at the end of the day, you deserve to be paid for your craft.