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Decentralized applications are software that interact with the blockchain in DeFi (Decentralized Finance) keeping track of the state of all network participants. Ethereum dapps development services have the same interface as any other website or mobile application today however their core functionality is represented by smart contracts.

How Do Decentralized Apps Make Money?

The answer to how to make money with dApp takes startups and enterprises through many routes. Following are the unique revenue earning models for businesses with dApps:

1. Crowdsale and token launch

The foremost dApp business and revenue model to consider is to bootstrap a project through crowdsale and back it with an asset token.

If you plan on taking this route, you will have to keep following things into consideration:

  • The core functionality of your decentralized app
  • Provided access to the network
  • Distributed profit to the token holders

2. Transaction fees

Another answer to can you make money with dApps is that the transaction fees model, you will find in all the dApps monetization guides. Charging users for availing your service can be one of the most profitable ways to make money by developing dapps.

This is one of the most popular ways if you are looking to make money with ethereum dApp. This is how it works;

  • A purchases something from B on your platform
  • X% of the amount goes to you – the service provider
  • 100 – X% then goes to B

3. Premium

Taking cues from the traditional, non-decentralized gaming apps, you can add the monetization functionality in your app to answer the investors’ persistent question on how to make money with dapps.

If yours is a gaming app too, you can add the model and offer players a chance to up their game without working on the levels by buying the premium functionality using digital currency to successfully utilize dApps games to make money

4. Subscription

You can easily add a membership or subscription element in the contract to ensure that the function has only been called upon by subscribers or the premium members.

5. Advertisements

While still a very new/ less used blockchain business and monetization model, advertisements do in fact find a place in the answer to how decentralized app development makes money.

6. Donations

If your dApp project is out to solve some world issue or to function around some social cause, you can put a donate button on your application or website or can even pass its link around to social entrepreneurs to donate.

7. Create digital goods

One of the biggest examples of how Ethereum apps make money using this monetization model can be seen in CryptoKitties.  

8. Referral marketing

Referral marketing that has proven to be behind e-commerce apps’ success can also be taken into consideration to make money with Ethereum based decentralized applications. In fact, there are a number of Blockchain powered platforms on the internet today that give you a link to their websites to promote. 

So, these were the eight effective decentralized apps business models and strategies you can look ahead to enjoy maximum revenue from your dApp development.

There are already major dApps with massive user bases such as Empire, Augur, Basic Attention Token, Compound etc, that carry multiple sources of revenue for a viable business model. all you need to know is “how to make money with dapps


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