How to Choose the Right Pricing Strategy for your Mobile App Project?

Everyone in the world does their business with one thing in mind, that is finding strategies and formulating plans to enhance their business. When we talk about business there is no in-between. A business can either go upwards or can fall, and no business wants to go otherwise.

We are in the digitalized era where people prefer to get whatever they want by a single click and avoid to visit Brand Stores. We have plenty of examples to showcase the increase in sales revenue when businesses have expanded itself digitally. To choose the virtual medium for business outgrowth, it is important to decide which type of digital mechanism you may need to accomplish the purpose. If you’re a vendor or brand, you can make yourself available virtually by launching an application or website. You can also invest yourself in making interactive games to promote your businesses. You can also generate revenue by launching a game application like ludo, Teen Patti, PUBG. The mobile app industry is flourishing and all other industries should take advantage of this at utmost.

In a survey, it was found that 30% of the traffic that many businesses have comes from mobile apps. Launching a mobile app is a task that is easier said than done, and one of the biggest challenges that you will face will be in choosing the right pricing strategy for your mobile app project. 

Millions of apps are there in the Apple App Store, and Google Play and thousands are launched every month. A smart person is one who tries to penetrate the market after researching it. Before we go into details about pricing strategies for your mobile app development, let’s look at what pricing strategy is.

What is Pricing Strategy?

Developing an app is an investment, and we all want the best ROI of the investment, and thus pricing strategy is the way you make money from your app. If you want the best ROI, you have to decide the Pricing Strategy before starting the mobile app development process. 

Pricing a product may seem easy, but it certainly isn’t as various factors are to be considered before you finalize the pricing strategy. As mentioned earlier, there are millions of apps out there, and therefore you have to consider your competitor’s pricing to avoid overpricing or underpricing. It is essential to ensure consistent business conversion, sales, and marketing output.

Before purchasing or downloading anything, we check out the product or app. We review the pros and cons and also check out similar apps. There is a feature in app stores too, which lists similar apps, and so the potential customer will definitely compare your app with others, and thus you have to create a pricing strategy that provides the best benefits at the lowest rate.

Before we discuss the strategies, let’s discuss the types of strategies that we have. There are four types of pricing strategies, and they are:

Well known Pricing Strategy:

1. Free:

If we have to pay something, there are chances that we will think that if the thing is value for money or not, but if something is free, we will download it to use or at least to try it. You will see Google Play Store and Apple App Store flooded with free apps. 

The app is free to download, and the main source of income is through advertisements. When the television industry can earn billions using this strategy, why can’t the apps?

According to your purpose, there are two types of free apps. The former is a completely free strategy. You can use it as an add-on tool for your brand name. Brands develop their apps to facilitate the shopping experience. The goal is not to earn money directly from the app but to redirect the customers to other revenue streams. 

The completely free app includes features like coupons, discount notices, and other information that can encourage the user to take action. The app is used to spark interest and to make the experience with the brand or company easier and efficient. 

The latter is an in-app advertisement. In this, the app is free to download, but the users will have to see some ads while using the app. 

According to Statista, mobile app pricing statistics indicate that the distribution of free and paid apps is such that 96% of apps in the Google Play store are freely available, whereas, in iOS, 90.3% apps are free.


  • More chances of downloads
  • Drives consumer awareness and boosts engagement
  • People prefer free apps more than paid ones. 


  • You will need a huge user base to generate revenue.
  • Users can get frustrated/distracted from the advertisements. 

2. Freemium:

This is a modified version of the free pricing strategy. The apps can be downloaded for free, but the users will get access to limited functionality and features. To generate revenue, in-app purchase opportunities are created. There are three freemium strategies:

1. Two-tier approach:

It includes apps that the customers can download and use for free, but there is a premium functionality that can be availed after payment only. E.g., The Royal Pass in PUBG, in-app currency in games, etc.

2. Free trial approach:

The app is free to download, and you can use all the features that the app offers, but to a limited period only. The idea behind this is to let the users explore and see if the app is right for them before making the period and to provide them with a taste of what the app is capable of offering.

3. Advertisement approach:

All the features are free to the users. The users have to see advertisements now and then while using the app. The catch here is that the users can pay a specific amount to make the app ad-free.


  • Attract a lot of users and organic traffic
  • When users see the capability of the app, they are willing to pay for it. 
  • If properly developed, a freemium app can be a huge source of income. 


  • Proper management of updates is required.
  • Notifications for updates are to be positioned appropriately, or it can irritate the users.

3. Paid:

The users have to pay a certain amount to download the paid apps. Due to the popularity of free apps, paid apps are considered the least effective. 

If you want more people to download your apps, you have to back up your app with compelling marketing strategies. You have to make sure that the users understand that the price that they pay is just a small investment, and they will have tons of benefits after downloading your app. 

The users have the highest expectation from the paid apps, and thus you have to make sure that your app can stand to those expectations. To leverage the paid price strategy, brands offer a free week or month trial to the users. 


  • The revenue stream gets established.
  • It is a base for loyal customers.
  • Increase in user ratings


  • Prospective users are unlikely to attract due to the price factor.
  • High user expectations.

4. Paymium:

This is a mixture of paid and freemium apps. The users not only have to pay to download the app, but they also have to pay to avail added functionality too. Although this is not a widely used strategy, this strategy has a huge potential to generate great revenue streams. 

This is used by music and social networking apps. This strategy can be successful and can generate revenue if exciting content, unique functionalities, and useful features are introduced regularly.


  • Payments are ongoing.
  • Pushes you to think out of the box and find new ways to attract users. 


  • The number of downloads is less.
  • Extremely high-quality content and regular updates are required. 
  • Is time-consuming and requires a lot of effort. 

Now you know all the types of apps that are available and the advantages and disadvantages of them, but which one should you use for your app?

First of all, you should ensure that you choose an expert and skilled mobile app development company for your app development project so that they can help you in deciding which type of app you should have. Nevertheless, here are some factors that you should consider before finalizing your pricing strategy.

Factors to Review for choosing right Pricing Strategy:

1. Analyzing Consumer Behaviour and Psychology:

Consumer behaviour and psychology play a significant role in deciding the price of your app. Today’s consumers know that they should consider all the alternatives before buying/selecting anything, and therefore you should also consider this fact. Now how can you assure that the customer will select your product?

For this, you should define the value proposition that you are offering. You should ensure that what you are offering possesses a greater value than what your competitor offers.

2. What the Market is Willing to Pay:

The right pricing strategy is one that considers what the customers are willing to pay for the solution/benefits that your app will offer. To determine that, you must test your product at different price levels and see how the market responds.

3. Market and Competitor Analysis:

Market-driven pricing is a great approach to penetrate the market. Analyzing the strategy that the competitors are following and the user base that they are targeting can help you in discovering the strategies where the competition is lacking.

4. Design the Product that Users Want:

The product which you are developing needs to target the audience who wants that product. If your promotions are not targeting the right audience, the outcome will not be what you expected. You should ensure that you are developing an app that your userbase needs and are willing to buy.

5. Affordable Price:

Need is one thing, but the app should be affordable too. People will buy it only when they see the value for money or else there can be a big problem. If you want to attract more customers, you should offer better value to the customers at a reasonable price.


At Capermint We are passionate and skilled team willing to discuss and suggest every possibility to help your business to grow. We are happy to serve our knowledge to you as we believe in maintaining long term relations with our clients where we can be helpful to them for their business success.

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Mr. Vivek Shah
Author: Mr. Vivek Shah
He is the pioneer, motivational speaker, solution provider, MD and CEO of Capermint Technologies Pvt Ltd: A leading Mobile Games & App development company. He believes in crafting creativity with calibre which construct a valuable outcome for the world out there looking for innovation. As a CEO, he likes to help other companies to transform their app ideas into reality.

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