Best Pricing Models: How to Monetize a Mobile App?
We already talked about how to easily make an app and discussed which key metrics could define your product success. Now, I guess, it’s time to learn about modern pricing trends for mobile applications. It’s actually one of the biggest challenges for all developers to find a suitable way to monetize their product.
The app market is booming over 2 million apps already, so you have to be wise and strategic when it comes to launching the product if you want it to be noticeable and top-ranked among others on the Marketplace. Let’s see what are your options out there?
Monetization Model — what is this and how to choose
Pricing strategy literally means how you make money with your product. And this isn’t an easy task pricing a mobile app, some professionals make it their career goal to understand the laws of the market.
There are four most common pricing strategies — free, freemium, paid and paidmium. It’s crucial to apply a suitable price to your app because customers already have seen all kinds of them and seek for something truly outstanding. Therefore, you have many factors to consider when selecting the pricing course and understanding the user’s behavior habits.
So, how to pick the right monetizing strategy?
Well, reasonably, you should ensure that it makes the most sense for both, entrepreneurs (stakeholders) and customers. There is no need to fit in one particular strategy, just because it’s popular or seems the best option according to your opinion.
Always remember that the app have to stay valuable for consumers and the ROI is high enough to show investors that it’s smart to continue supporting your project. So, to choose wisely, you should keep in mind the following:
- The value of the product has to be greater than its price.
- You’ve to decide whether you aim for the large target audience or plan to win over a small market niche.
- Price must be reasonable for users — you need to consider the development cost for the app and then learn what to do to make it profitable.
- Test the product at the variety of prices.
- Users expect more from the paid apps, so check out what your competitors are doing with their pricing tactics.
- Understanding of Market demands is a key.
- Make sure that you create something that users will crave to get.
And when you’re done with this stage, then it’s a green light for you to pick an actual monetizing course.
Read the full descriptions of 4 best pricing models in our article https://tecsynt.com/blog/4-best-pricing-models-how-to-monetize-a-mobile-app