Single Purchase: In this model, you would sell the app to the end user for a set fee. This would be a single transaction and once they have paid for the app, they own it and there are no further transactions.
Benefits: With this model, it is quick and easy. Users just have to make a decision if they want to spend a specific amount of money right now and that is it.
Cons: The downfall is that this requires mass appeal or a high value to generate significant revenue.
Freemium: With a freemium app, you give the app away for free in hopes of being able to up-sell the users with add-ons and upgrades once they begin using it.
Benefits: Getting adoption of your app is easier because it is free for people to download and kick the tires.
Cons: You are reliant on getting users to buy upgrades. It is a fine line between giving the user enough features in the free version to make it enticing but not giving enough so they have to buy upgrades.
Subscription: Often times looked at as the holy grail of monetization is a subscription model. This is where often times the app is free but requires a monthly or annual subscription that is paid for the app to be useful.
Benefits: Most businesses love this model because it generates recurring revenue and, while can be small at first, over time it compounds to build a nice revenue stream.
Cons: This is often the hardest to sell as it requires a user to make a monthly commitment to pay a certain amount.
Hopefully this is helpful to show various ways you can monetize your app. If you have an idea that you would like to discuss, give us a shout at 810-695-0001.