How to Pick the Right Pricing Strategy for Your Mobile App Project


3 Jun, 2020


5 min read

pricing strategy

Eric Schmidt, a former CEO at Google, once said, “the trend was that mobile was winning. It has won now!” It means mobile app development is more than a luxury for businesses. It’s a necessity that determines your success in the digital world.

That said, businesses are increasingly targeting the mobile platform in hopes to leverage its benefits and boost their revenue. So, you need an app pricing strategy that puts you above others.

Picking the right pricing model is not a walk in the park, however. Several parameters determine the right fit. So, here is a guide to help you make the most of your app idea.

In the blog, we’ll discuss what pricing strategy is, its types in the market, and how you can choose the best pricing strategy for your mobile app:

What is Pricing Strategy

App pricing strategy is the method of earning a monetary return on investment through mobile apps. It is the methodology that helps determine the best price of a product that is neither underpriced or overpriced based on its value.

Several factors have a significant role when planning a pricing strategy. Your business niche, goals, target market, value, and purpose of your product, influence app pricing models. External factors like competitor pricing, market demand, and economic trends are also essential parameters to consider.

Additionally, multiple pricing models exist, so choosing the best strategy for your mobile app is not an easy feat. Here are a few types of app pricing models you would come across in the app market:


The free app pricing strategy ensures the app downloads are free of cost. The lack of a price tag is one of the most effective ways of attracting an audience.

You have two options with a free pricing model. You can either offer a completely free app or enable in-app advertisements. An entirely free app works as an extension of your existing business. Its purpose is not to earn money but to act as an add-on tool for customers, attract, and acquire new users.

Alternatively, with in-app ads pricing models, app downloads are free, but users see ads when using the app. Strategic mobile games most often use in-app ads to earn revenue.


Much like the free apps, the freemium pricing model is where apps are free to download, but some features and in-app items come at a price. There are three freemium pricing strategies to work with for your mobile app, depending on its features, tiers, and incentives.

You can opt for a two-tiered approach, where downloading is free, but in-app purchases are required for premium functions. Strategic mobile games, for example, use it to encourage users to buy extra lives, gadgets or upgrade to new levels.

Alternatively, the second approach is where access to full features for a limited time. Users can experience the app and its utility before deciding to pay for continued service.

Lastly, you can offer all app features for free but include in-app advertisements. Users can then opt for ad-free service via a small subscription charge.


As the name suggests, paid apps cost a specific amount on download. With the rising number of free and freemium apps, you need a compelling marketing plan for users to opt for a paid app over free ones. Thus, most app development companies do not recommend using it as your app pricing strategy.

That said, it is ideal for businesses with a substantial, loyal customer base. So, if you want to leverage the paid pricing model, it’s best to start with a free trial to let users see what they will get for their money.


Paymium is what results from a marriage of freemium and paid pricing models. It is a relatively new strategy where users are asked to pay not only for app downloads but also to unlock certain features.
It is ideal for music apps, social networking, or navigation apps. Much like paid models, you need to provide a compelling reason for users to make the purchase. But if used correctly, paymium models can generate substantial revenue streams.

Mobile App Project

How to Choose the Best Strategy for You

How much money can I earn’ is not the question you should be asking when it comes to picking the best pricing strategy for your mobile app. As mentioned before, several factors play a vital role in determining the ideal price that falls within the two extremes, underpriced and overpriced.

Here’s a little insight into the determinants you need to consider for your mobile app project:

Your Target Audience

The target audience plays a central role in the success of any business venture. From the purpose of your app to your marketing efforts, your customer base determines the direction of your business.

Consequently, they also influence your pricing strategy. If the app targets high net worth individuals who aren’t interested in paying a penny, regardless of the usefulness of the app, then a paid model won’t help you with your business goals.

Similarly, if you aim to target students, a free or freemium model will work best in achieving your goals.

Your Choice of Platform or App Store

Your target platform also influences the best pricing strategy for your mobile app. It’s because both Android and iOS offer different a target audience with a different perspective on in-app payments. Apple users are more open to downloading paid apps or paying for advanced features than Android users.

That said, you’ll find more success with a paid pricing model on iOS App Store than Google Play Store. So, consider your target platform when deciding your pricing strategy.

Your Competitors Pricing Strategy

The goal of any business is to surpass the competition, but you can’t come up with a pricing plan that is unique and original. That said, it’s best to observe what your competitors are doing and learn from them.

For example, if other apps in your category are free to download with in-app purchases, you can’t go with a paid or paymium pricing model.

Contrarily, the one-size-fits-all ideology doesn’t work with pricing models. So, while you need to consider what your competitors are doing, you also need to analyze the purpose of your app, its market value, the cost of developing it, and your desired ROI.

Start Earning from Your Mobile App Project

Depending on your goals and what you aim to achieve with your mobile app, you can choose one of the four pricing models. For example, a free or freemium strategy works best when you want to attract and acquire new users.

With a freemium model, you need to offer exceptional features in your apps, such as backup, more storage, or line items. Users don’t mind a little expense in exchange for value-added features and functionality.
Similarly, paid and paymium models are useful when the app offers an unparalleled quality of service. If consumers can enjoy clear benefits, they are likely to pay a one-time subscription fee.

I hope the blog helped in understanding how to determine the right strategy for your mobile app. So, are you ready to earn from your app idea?

If you need a little assistance, get in touch with our experts and get an experienced team to help you develop an app and pick its pricing strategy!



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