A monetization model is a method of generating revenue from mobile applications through one or more strategies. Having a well-thought-out monetization model is crucial for the long-term success of apps, ensuring sustainable income and maintaining the quality of the user experience. 

Common monetization models include:

• In-app purchases model. Users buy items or services within the app.
• In-app subscription model. Could prompt users to pay outright or try out the app for free and pay for service or item upgrades.
• Paid app model. Users pay an upfront fee for app downloads.
• In-app advertising model. App developers or publishers sell space in their apps to advertisers.
• Hybrid app monetization. Combines any of the above-mentioned methods.

Monetization model success story

A company called toolZhire has successfully implemented a unique business model and a good monetization model. The startup provides a free-to-download app that serves as a marketplace for rented tools and equipment. The company has succeeded by generating a large user base while ensuring steady income through transaction charges.