App subscriptions: the revenue model that keeps growing

App subscriptions are rapidly gaining popularity. Whereas traditional revenue models – such as advertisements or one-time purchases – are often less predictable, a subscription model provides a steady source of income that offers structural stability. This creates more room for investment in future developments, giving organisations the flexibility to adapt more quickly to market changes. Ideal for anyone who wants to have an app developed that delivers long-term value and grows alongside its users or business.

Why an app subscription works

An app subscription provides predictable, recurring revenue. Instead of one-off purchases, you build lasting customer relationships. Especially for apps that offer content, enhance user productivity, or deliver tailored services, the subscription model is increasingly becoming the norm.

Three models: which fits your app?

There are different types of subscriptions, each with its own application:

• Pay-to-use: users pay for full access. Think of fitness or education apps.
  

• Freemium (pay-to-upgrade): basic features are free, premium ones are paid. Ideal for apps with broad adoption.
  

• Membership (pay-to-pay-less): a subscription provides discounts or extra benefits, as seen with delivery apps.
  

Want to learn more about other interesting revenue models for your app? Then also read our article on making money with apps.

Advantages of an app subscription

More and more apps are choosing a subscription model. It generates predictable revenue and creates room for growth. For businesses, this means a revenue model through which an app is not only created but also performs sustainably. The subscription model offers the following advantages:

1. Structural income
   A subscription ensures recurring revenue. This makes income predictable and provides the financial stability needed to plan future investments.
   

2. Ongoing development
   With a stable source of income, the app can be continuously expanded and improved. This keeps the app attractive to users and strengthens the company’s market position.
   

3. Long-term user engagement
   A subscription encourages long-term use. Through regular updates and added extras, users remain engaged, increasing customer lifetime value.

The subscription model provides businesses with a solid foundation to turn apps into a source of steady income and lasting user relationships.

How to make the switch to a subscription appealing

A successful app doesn’t feel like a standalone tool but like a service users rely on daily. To achieve this, it helps to communicate the value of a subscription clearly from the start.

• Continuous value: a subscription only works if users regularly have new reasons to keep paying. Constantly adding new content or features keeps the app attractive and the subscription worthwhile.
  

• Clear added value: show which features or content are exclusively available to paying users, making upgrading feel like a natural choice.
  

• Ad-free experience: many users are willing to pay to enjoy the app without interruptions. Removing ads is often a direct incentive to choose a subscription.
  

• Smart retention: use personalised reminders or exclusive access to keep users engaged and subscribed for longer.
  

Tips for a strong subscription model

Would you like to have an app developed with a subscription-based revenue model? Then keep the following in mind:

• Start with validation:
  Research whether your target audience is willing to pay for the solution. This can already be tested with a simple landing page or clickable prototype.
  

• Work with a clear strategy:
  Map out the value your app adds and how you translate this into a subscription structure. Consider freemium versus full access, or discounts for long-term users.
  

• Support your revenue model towards investors:
  Demonstrate that your business model is scalable, for example by showing the ratio between expected revenue per user and the cost of user acquisition (LTV versus CAC).
  

Using app subscriptions as a revenue model

At DTT, we think beyond app development – we also help shape your business model. Whether you’re building a functional tool, a content platform, or a scalable B2B solution, a strategically designed subscription model can make the difference between breaking even and achieving exponential growth.

Are you looking for an app developer experienced in building strong subscription-based business models? We’d be happy to think along with you - both technically and strategically.