Once your mobile app is developed, you must be thinking that you’ve passed the hardest phase.
But unfortunately no! Mobile app development doesn’t require your direct involvement as you’ve handed over the task to the development company.
Once you’ve received the app, it’s time to make it accessible to the users so they can download it and start using it.
This is where you really need to put in an effort. Because it’s very complicated and strenuous to price your app.
People don’t love to pay to download apps. But at the same time, you want to make money.
But is it really possible or not?
Yes! By selecting the right pricing model.
Read Our Complete Here: How Much Does It Cost To Develop An App On iOS?
What Are The Four Mobile App Pricing Models?
Free
From the word “free” we mean, the apps that are absolutely free to download.
Simply, a user can go to “The Google play store” or “The Apple app store” and click the install button without paying anything.
But the question here is “ How do free apps generate revenue”.
The answer is simple, by showing ads they generate revenue. Also, this is the only direct revenue stream.
Free apps are the most popular type. Hence, people love to download such apps.
Benefits of Free apps
- Businesses and companies can leverage their product and service.
- High percentage of downloads
- Enhance customer retention and communication
- To create a large customer fanbase
How do free apps make money?
From the name “free” it doesn’t mean that you’ll not make money at all.
There’re two ways free apps generate revenue.
First, the best way you can make money through a free app is by offering a service that will create revenue.
It’s an indirect way you can make money through apps.
In more simple words, such apps direct users to services.
The second method, to earn money is by displaying in-app advertisements. Other businesses and advertisers will pay you money for showing ads.
Freemium
Another amazing mobile app pricing model that you can consider is the freemium method.
The word freemium is derived from two words “free” and “premium”.
When users first download the app it’s free. That means users don’t need to pay at the time of installation.
But soon as they start using it they realize that some features and functions can only be accessed by paying a price.
How freemium pricing model differs from the free model?
In the free pricing model the entire app each function and feature is free to use. But in the freemium model you’ve to pay to access all the features.
Benefits of freemium model
- Two sources of income (in-app purchases and advertisements)
- Create a large customer fanbase
- Easily gather a lot of traffic and downloads
What are the three types of freemium apps?
Gaming apps: Where the download is free but to go to an advance level users are required to pay.
Magazines: The service is free but for a limited period. After the trial period ends users are required to pay to unlock.
Ads: By paying a fee you can get rid of annoying ads that are popping out one after another.
Paid
As the name suggests, paid apps are the apps that users have to pay to download.
However, with the increasing popularity of free and freemium apps, paid pricing models have become outdated.
But still, there’re many apps that are doing extremely well by following this pricing model.
How you can make paid pricing model successful?
The chance of success with paid pricing model is very low. But still, there’re several apps that make handsome revenue out of it. The key to success is coming up with unique and valuable content that keeps users engaged.
For instance, Netflix, Amazon prime, and Hulu keep customers coming back to them by introducing new content.
Benefits
- Slow but robust income making model
- New marketing strategies to create a user fanbase
Paidmium
Paidmium or Payium apps are a combination of paid and premium pricing models.
Such apps can only be accessed when you pay to install them. On top of that, to gain features you’ve to pay more to unlock them.
Benefits
- Potential to become a new revenue streams.
- No need of a large customer fan base.