Why Your App Isn’t Making Money: Common Monetization Mistakes

So, you’ve released your app, you’re getting some organic downloads, and you’re ready to scale. Maybe you’re thinking of trying paid ads. But before you make that move, it’s essential to make sure your monetization strategy is solid. Otherwise, you’ll be scaling a leaky bucket, with users pouring in but no revenue to show for it.

Let’s walk through the most common monetization mistakes developers make and the tools you need to fix them.

Mistake #1: Skipping the Facebook SDK

If you’re planning to use paid ads, integrating Facebook SDK is crucial. It allows you to track user actions within your app, meaning you’ll know which ads are leading to purchases—not just installs. You need this data to optimize your ad spend and target users effectively.

Without the Facebook SDK, you’re left guessing which campaigns are driving real value. This can lead to wasted money on ads that don’t bring paying users. The SDK also helps you retarget users who don’t convert right away, giving you multiple chances to bring them back to your app.

Mistake #2: Neglecting Subscription Management Tools Like Adapty or RevenueCat

Subscription apps are the bread and butter of the App Store, but getting them right can be a challenge. This is where Adapty or RevenueCat come in. These tools take the headache out of managing subscriptions by tracking renewals, cancellations, and revenue, so you can focus on scaling.

They also allow you to create dynamic paywalls and set up free trials easily. Whether it’s a 3-day or 7-day trial, you can test what works best. And since trials are one of the best ways to convert users into paying customers, using these services ensures that you’re giving users a smooth experience when upgrading from free to paid.

Mistake #3: Not Using Product Analytics (Mixpanel or Amplitude)

Many developers release their app and then wonder why conversions are low. Product analytics tools like Mixpanel or Amplitude are critical for understanding what’s going wrong. These tools let you analyze how users move through your app, from onboarding to paywall, and help you spot where they drop off.

For example, if 100% of users see the first screen of your onboarding, but only 65% reach the paywall, you’ve got a problem. Maybe your onboarding is too long, or the value proposition isn’t clear. Mixpanel or Amplitude can help you diagnose these issues, so you can tweak the flow and increase conversions.

Pro tip: Keep the onboarding flow simple and focused on showing users the value of your app as quickly as possible. Long, confusing flows drive users away before they even get to your paywall.

Mistake #4: Overlooking the Paywall and Onboarding Process

It’s easy to get caught up in building features, but your onboarding and paywall experiences are the two most critical parts of your app. Onboarding is where you hook users and guide them to see the value in your app quickly. The paywallis where you convert them into paying customers. If either of these is confusing or off-putting, your app will struggle to make money.

A well-designed onboarding flow should be simple and focused. You need to show users the benefits of your app quickly—users won’t stick around if the experience is long or unclear. And when they get to the paywall, it needs to be compelling, clear, and frictionless. Offering trials can help lower barriers to conversion.

Mistake #5: Ignoring Competitor Strategies and Data

Don’t reinvent the wheel when it comes to paywalls and pricing. Your competitors have already spent time and money figuring out what works—so use that knowledge to your advantage. Tools like SensorTower can help you analyze top-performing apps in your niche, showing you their most popular in-app purchases and pricing strategies. This data provides a solid starting point for structuring your own pricing and paywalls.

By benchmarking your paywall against successful competitors, you can avoid costly trial and error. Mimic their approach initially, then start running A/B tests to refine your paywall design and pricing structure based on how your users respond. It’s much smarter to start with a model that’s already working and fine-tune it, rather than building everything from scratch.

Conclusion: Get Your Monetization Right Before You Scale

If your app is starting to gain traction, now’s the time to focus on your monetization strategy. Integrate tools like Facebook SDK to track user behavior, Adapty or RevenueCat to manage subscriptions, and Mixpanel or Amplitude to analyze user flows.

Ensure that your onboarding and paywall experiences are smooth, simple, and focused on converting users. And don’t forget—competitor data is gold. Use it as a benchmark and adapt based on what works best for your audience.

Monetizing an app isn’t just about getting users; it’s about turning those users into paying customers. With the right tools and strategy, you can start turning your downloads into dollars.