Creating Your Product: Pricing Strategies For Apps and Websites

Finding the right pricing strategy for your app or website can be tough, but it is quite important to choose a pricing strategy that will work the best. Here you’ll read about three pricing strategies that fit different kinds of online services or mobile apps.

Money

Pricing strategy affect revenue a lot. If you set it wrongly, users won’t purchase your product or service even if they need it.

People are used to paying in the most comfortable way. For example, a monthly subscription works better than yearly subscriptions in gyms. And the gym can lose lots of clients if it proposes a yearly approach only.

However, there are some people who are interested in a yearly subscription instead of monthly. It depends, so check the next pricing strategies and decide what will work for your kind of business.

Freemium

Freemium = free + premium. The core services of the product are free while others require payment.

Here is a good description from freemium.org:

“A well known example of a freemium business model is Skype which provides free computer to computer calling and sells premium products in the form of world wide connection to landlines and mobile phones”.

Remember: you have to get lots of users because only a few of them will use premium in addition to the free features of your product. There is no correct number of converted users, but there is a rule of a thumb:

If you convert…

• 1%: You are doing “fine.”
• 2%: You are doing “well.”
• Anything above 2%: You are doing “very well.”

Subscription

In this pricing strategy, customers pay a subscription price to have access to the products or services…

Check 111 Minutes Blog to read about subscription and Pay Per Item strategy. And find one more nice illustration as a bonus there!