How to Price Your App- Different Pricing Models and Monetization Schemes to Choose from
There are some mobile app developers that create applications solely as a hobby. They do not care about earning money from it and they just want to do it because they actually love doing it.
However, there are also some developers that want to use their apps as their money-making machine. There’s nothing really wrong with that at all!
If you’re thinking of pricing your app, then you have to read this article first so that you will be further educated about the different app monetization schemes you can try out for yourself.
Before developing an application, you should do your due diligence and conduct some research on your competitors. See if your application is way better than theirs so that you can apply this monetization scheme.
This method is where you find out and see how much each section of your customers will pay for your app.
The best way to do this is to offer your app based on tiers. For instance, you can offer a basic version with just the core features and perhaps add a pro version with more features, with the enterprise edition having everything that the app offers.
In other words, price your app in a way based on the demand of the audience.
In this method, you will calculate the entire cost of your app development– from the actual app creation to the marketing and promotion aspects. Your calculation needs to be precise and accurate so that you can set your prices accordingly.
Although this is not a method that a lot of developers use, this is a suitable option if you just want to recoup your losses (and possibly add more).
This is where you will do your research first and see how much your competitors price their apps. You can add a little bit more to give the impression that your mobile application is much better than your competitors.
However, one of the common mistakes people make when using this pricing method is that they get too carried away with the pricing- charging your customers far more than what your competitors are asking.
Do your research and then place your prices accordingly. Just do not go way overboard with the pricing.
This pricing method will rely solely on the value your application gives to the end user. If the application does what a customer wants, they won’t hesitate to spend their hard-earned money.
The only problem with this approach is that developers might overvalue their product- charging the customer more for a less than stellar value proposition.
- Try different pricing schemes until you arrive at one that works for you (and your customers).
- If it is your first mobile app, do not get discouraged if your app sales are not up to par with your expectations. This can happen and it still depends on what your application can do and how it benefits the customer.
- It is always a good idea to somehow underprice your product than overcharge it.