4 Proven Methods to Price your New Mobile Applications
Due to the stiff competition in mobile app development, developers make money through various types of pricing strategies. It is essential to pick the right strategy, as it determines the success rate of your mobile app. Here are four proven methods you can use to price your new mobile application:
The most popular type of pricing strategy is to make the app completely free to your users. You earn revenue for your app through advertisements. The reason why developers choose to make their features free is to encourage users to download the app. In other words, the users don’t see any downsides to using a free app.
From an advertisement perspective, this strategy is brilliant, as it gives you the potential to generate large amounts of revenue. However, there are a few shortcomings with this type of strategy. For starters, you need to get a large user base before you start raking in the profits.
A common pricing model among games, freemium is a technique, where your app is free to download, but the users need to pay for certain features. As users get to select which feature is important to them, the value of your app in their eyes increases significantly.
There are several ways you can adopt the freemium strategy for your app. The first strategy is to make only certain features free, while users pay for others. The second type is to make all the features free for a given time frame, before charging users to use specific features. The last one is to make everything free, but the users have to pay to remove the adds. On the downside, you will have to spend a large portion of your time to ensure the paid features are valuable to your users.
In this technique, you charge your users a premium to download and use the features of your app. Although not a popular technique, you get direct sales, whether your users choose to use your app or not. You should only use this technique if you have a user base who is loyal to your brand
One huge disadvantage is that a lot of users won’t download your app, as they have to pay for it. Also, if your app doesn’t meet their expectations, you will get a large number of negative reviews.
A new pricing strategy, paidmium is one where the user pays to use all the features of your app. However, you also combine freemium strategy, by releasing new features, which the user has to pay to use. While it gives you the freedom to be innovative, you still have to ensure the new features are worth the money.
Now that you are aware of the four proven methods to price your new mobile application, pick one which meets your requirements!