In today’s digital era, every entrepreneur is working upon improving their online presence either via websites or mobile applications. However, the major problem they usually face is while deciding the price of the mobile app. The pricing strategy actually has an important role in deciding the initial interaction and visibility in the app store. So, in order to define the success of a mobile app, it becomes important that you focus on the pricing strategy of your mobile app project.
Mobile app pricing is one of the tough tasks during the mobile app development lifecycle, which most of the business owners don’t have enough knowledge about. So, in this post, we are going to explore how you can choose the right pricing strategy for your mobile application project. So, let’s get started!
Understanding App Pricing Strategy
An app pricing strategy is basically is the strategy that helps you make money from your mobile app. It comprises of the guidelines which assist in getting money from the app and you can find numerous sorts of mobile app pricing strategy models in the market. Since the majority of the developers find it difficult to do it, so we are going to discuss a few ways to do it. With the launch of the App Store, the pricing models have undergone drastic changes; there are mainly four sorts of pricing strategies that you can go for.
1.) Free
The free applications are free of cost to download i.e., you can download a free model without having to pay a penny for it. In order to convince a wider audience, it comes up as a great model that is used broadly. So, to improve brand awareness and customer base, free model can be the ideal choice.
2.) Paid
Paid model is preferred by enterprises that target users who wish to use full app experience without in-app purchases. Under this model, customers need to pay once during the time of installation of the application on the phone. The paid model is counted as a less preferred option since there is a huge availability of free app models.
While going for a paid model, you must have strong marketing backup. For encouraging the customers to purchase the app similar to an app that is available for free on the app store, a seamless marketing strategy must be prepared. The benefits of going for the paid model include- revenue stream is accomplished, more user ratings, and it acts as a base to grab loyal customers.
3.) Freemium
The mobile app cost under this is totally free to download, however, they come up with limited features and functionalities. Businesses beginning with apps that have in-app purchases enable developers to charge for additional features. Users need to pay extra within the application for unlocking the features or speeding up the game play and thereby maximizing the value of the app.
4.) Paidmium
These are the apps that are a combo of freemium and paid models. Under this model, users need to pay for the application and can further enjoy extra features by paying additionally. However, this model is not that popular yet is capable of generating better revenue streams. For apps such as navigation and social networking apps, paidmium can be a preferable option to go with.
Prior to finalizing the pricing strategy for your mobile app project, you must spend considerable time while learning all these methods thoroughly and then make the final decision.