Is It Possible to Make Money Using dApps?

How Do dApps Work?

dApps run on blockchain networks to connect users directly. Simply put, a blockchain is a distributed ledger where every user keeps a copy of the transactions. With blockchain as the underlying technology, dApp users do not rely on intermediaries to interact with dApps.

The difference between dApps and smart contracts is that, in addition to a smart contract, dApps contain frontends for user interaction. A dApp works by connecting it to a web3 wallet like MetaMask or TrustWallet.

How Do dApps Make Money?

Once you have created a dApp, you can use it to generate money in several different ways, including:

Conducting Crowd Sales and Launching Tokens

The most common dApp business model is funding it via crowd sales and token issuance. However, to conduct a successful token launch, consider the core functionality of your dApp, access to a blockchain, and profit distribution mechanism to investors.

Charging Transaction Fees

You can charge transaction fees on the functionalities of your dApp. To a large extent, this is the most effective way of monetizing your dApp.

Offering Subscription and Memberships Services

You can also monetize your dApp by integrating a subscription functionality, where your users periodically pay for the services offered. Better still, you can make your subscription usage-based—charging users according to their consumption rates.

Running Ads

Although running online and in-app ads on dApps may not be a common strategy for making money, it’s still an effective method to explore.

Inviting and Accepting Donations

If you have a social dApp, this is the best way of making money with it. Simply integrate a donate button with your dApp and include a funding stream for sustainability.

Creating Digital Products/Collectibles

You can also make money using dApps by creating digital collectibles to engage your users. Collectibles generate a revenue stream and give you a recall value among your customers.

Participating in Referral Marketing

People frequently associate referral marketing with e-commerce sites because referral marketing is the e-commerce game changer. But you can replicate this success in the DeFi space.

Even in its infancy stage, several DeFi applications offer links to boost their websites. As a dApp owner, you will be rewarded by such companies according to the clicks and traffic you generate.