Choosing the Best Pricing Strategy for Your Mobile App Development Project

Choosing the right pricing strategy for your mobile app development project may sound easy but has tons of crucial decisions and thoughtful research. In fact, it is one of the most essential aspects of app development. With almost every industry vertical investing in app development the competition is higher than ever and an ideal pricing strategy is necessary to upsell your project.

But what should be the exact price model you should be going for! Should you go for the free model to target a large group of audience or is it better to choose the paid model and aim for a high ROI! The moment you think of app pricing is the moment when all these questions start ticking your mind.

Worry no more! This blog will cover the following topics to relieve your anxieties.

  •       What exactly is meant by app pricing strategy?
  •       4 popular models of app pricing strategy.
  •       Pros and cons of each of the models.
  •       Important guidelines while choosing the app pricing strategy.

Seems you have a lot to cover. Without wasting time lets begin with our first point.

What is App Pricing Strategy?

The different ways of generating revenue from an app is called App Pricing strategy. As there are multiple apps available in the same niche catering to consumers, it is essential to research the market for deciding the right app pricing strategy.

Here are a few tips that must be taken care for finding the right one:

  • Research the target audience to identify whether the end consumers are generous with in-app purchase or not. Usually, iOS users are more kind to in-app purchases.
  • What pricing strategy is being followed by your competitors. As there are multiple out there you can simply study their models to identify the best one for your app.
  • The overall cost incurred for the mobile app development.
  • Your ultimate aim of ROI from the app.

Well, that was all about the handy tips for defining the App Pricing Strategy. Have a look at the 4 different models used for defining them.

4 popular models of App Pricing Strategy

 1. Free Model

This is one of the most widely used Pricing model when you want to reach a high number of users. As the name suggests, under this model the users can download and use an application without having to pay a penny. However, revenue is generated by opting for in-app advertisements under this model.

Free apps are usually offered by firms to ensure maximum reach of products or services they usually offer to the clients. They enhance user engagement and create brand awareness for the investing firms. It may be surprising but as per Developer Stats a stunning 96.7% of the apps on Google Play store follow this model.

Pros of investing in Free Model

  •       A high number of users download and use the app.
  •       Users don’t shy away from trying the app.
  •       User’s expectation is least from the app which follows this model.

Cons of investing in Free Model

  •       No direct revenue is generated.
  •       In-app advertisements sometimes lead to poor UX for the target audience.

 2.  Freemium Model

Freemium Model is by far one of the most successfully employed App Pricing Strategy. Under this model the users can download and install an app without having to pay any charges. However, to use premium features of the app the users will be required to make some payment.

Thus, the additional features require in-app purchase from the investors. The additional features can vary and may be a simple removal of advertisements from the app as well.

Pros of investing in Freemium Model

  •       As initial investment is nil so users don’t shy away from downloading and installing the app.
  •       Multiple strategies can be applied to generate revenue from the app.
  •       Users find it more credible to make in-app purchases when they are happy with the User experience.

Cons of investing in Freemium Model

  •       Sometimes users tend to lose interest in the app when asked to make in-app purchases.
  •       The UX of the app has to be incredible to woo users for in-app purchase.

3. Paid Model

The Paid model is one of the least practiced models of App Pricing Strategy. As the name suggests the user needs to purchase an app under this category and then uses it. An effective marketing strategy has to be developed to ensure the users actually buy and download this app from the store. As per Statista the paid model is high in iOS over Android standing at nearly 8%.

As free and freemium models of the similar mobile app development category are usually available in the market so it becomes a daunting task to convince users to buy it. However, with a strong channel of marketing investors can achieve it. Paid apps have to offer extremely high User Experience as end consumers have high expectations from it. 

Pros of using Paid Model

  •       A proper source of revenue is established right from the beginning.
  •       Developing a loyal customer base is easier for the investing firm.
  •       Organic crowd is mainly involved with the app.

Cons of using Paid Model

  •       The user expectations from the app are very high.
  •       Many potent clients are lost as paid apps require investment right at the start.

4. Paidmium Model

This model is a mix of Paid and Freemium models and hence the name Paidmium model. In simple ABC it can be said that the users need to buy the app right at the time of downloading and furthermore in-app purchases can be done once the user starts using it.

Thus, a major section of the app is available to the users but for accessing the complete features one would have to make in-app purchase. This mobile app development model is hardly practiced but holds the capability of gaining huge returns for the investors.

Pros of using Paidmium Model:

  •       A source of revenue is established right from the start.
  •       Multiple strategies can be employed to enhance the return on investment.
  •       A regular source of gain can be established with innovative thinking.

Cons of using Paidmium Model:

  •       Only a limited number of users are involved with the app.
  •       Regular updates need to be offered to the investors.


That was all about the Top 4 models of App Pricing Strategy. Based on your needs you can try any of them. We at PixelCrayons, suggest a proper model after ensuring a heavy research of the target audience.

Here’s a list of guidelines for finding the best App Pricing Strategy

  • Analyze the Target audience of the app

It is essential to research about the target audience of the app. As clients nowadays are well aware of the market scenario, your app must offer some innovative and unique features to leave a mark. It is easily observable when you are opting for a Paid Model of the app.

In such scenarios only those apps survive in the market which offers more than they actually charge. Learning about the target audience you will be able to make an informed decision.

  •  Test your product for different price models

You can try your app for different market prices to understand and find the best value you can get for the app. You can also try dynamic pricing based on the success of the price.

  • Market analysis of the similar apps

Chances are high that the app you are about to launch has multiple similar versions out there. So, it is best to use and analyze them to find out the feasible price of your app.

  • Go for an affordable pricing

The actual price of your app when opting for the Paid model must lie in an affordable range to encourage high conversions. Opting for exorbitant price may lead to loss of leads. Instead, you can try breaking in-app purchases with multiple affordable shares.

Final Words

Choosing the best app pricing model may require you to go for a trial method. However, among the 4 popular options the Freemium Model is by far the most preferred and employed one.

Based on tips you can choose any on them. To make an informed decision you can connect with mobile app development companies in India as they offer free consultation.





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