What is Mobile App Pricing? The Four Models of Mobile App Pricing, Factors, And Much More

Apps are breaking the barrier of popularity, and there is much possibility that you are reading this on an app too.

Nevertheless, the graph of app popularity depends on multiple factors.

And app pricing is unquestionably one of them.

How you set the pricing determines the success and popularity of your app.

Therefore, that must be done with a clear understanding and performing comprehensive market research.

You might have so many questions in your mind. 

How to price your app? What strategy works best for your app and most importantly which strategy is reliable in the long term?

Puzzled? Still, don’t worry. In this blog, we’ll discuss different aspects of app development pricing.

We will be discussing factors that influence mobile app pricing and four app pricing models and much more. 

Make sure to stick with us till the end; So you’re in a better position to make a decision.

What is a Mobile App Pricing?

What is a Mobile App Pricing?

Mobile app pricing is a revenue-generating phenomenon through mobile apps. 

A little difficult to digest? Let’s do it simply.

The strategy or approach through which you’ll place your app in Google or Apple play store to make money.

However, the process isn’t as simple as it sounds. You can’t pick any price tag you feel goes well with your app.

Picking the right pricing strategy predicts the future of your app’s performance. Contrastingly, a wrong approach will end up in a catastrophic situation.

The pricing and success of your app are commensurate. A solid pricing structure not just ensures healthy ROI but also influences your app engagement.

Till this point, you must have understood that while pricing your app, you must keep in mind some key elements. 

So let’s discuss the seven app pricing strategies in depth and how they can influence your mobile app pricing strategy.

How to Choose the Best Pricing Strategy for Mobile Apps?

How to Choose the Best Pricing Strategy for Mobile Apps?

Human Behaviour and Psychology

Humans are smarter than ever. Their decision-making capability is based on comparison, features, and quality.

There are might be hundreds of facsimiles of your app available in the market. Why should users download yours? 

Simply, give them a compelling reason!

Offering value more than the price is the best you can do.

When setting a pricing strategy, consider the competitor’s product and ensure you outperform them in value and positioning.

Your Target Audience

After all, you will sell your product to the target audience. So it’s indispensable to know everything about them. 

Different pricing models work with different target customers so make sure you pick the correct pricing model.

Study The Market And Competitive Landscape

Studying and analyzing the market from different angles gives you a clear picture. 

It shows the point where your competitors are lacking and it has great potential. 

So you can cover the gap and make a stable reputation. Know the USP of your service and set a competitive price.

Your Choice Of Platform Or App Store

Android and iOS are the two common platforms. 

And they serve two different kinds of users. 

iOS users have better purchasing power than Android users, So creating two different pricing strategies is necessary.

Create Products That Users Appreciate

Imagine developing an app that neither fulfills customer needs nor solves any issue. 

Why would someone download it; Just to fill the mobile space?

First, develop the app that satisfies users’ needs and then decide on to cost.

Test Your Product at Different Price Levels

App pricing strategy 7 is conducting the experimental process that will provide you with an overview that how people will respond to your app. 

You can also check whether people are willing to pay the price or not.

The right pricing strategy revolves around market demands and popular trends.

How Many App Pricing Models Are There?

How Many App Pricing Models Are There?

There are four most prevalent pricing models followed by the apps. We have listed them below;

  • Free
  • Freemium
  • Pay
  • Payium


The word “Free” can suddenly turn the mood on – as these days you can’t expect anything for free. 

Customers are more than happy when they don’t have to pay to download the app. This fact makes it the most effective pricing model. 

Apps under this model generate revenue either by enabling in-app ads or add-on tools for customers and acquiring new users.


  • More number of downloads
  • Increase the number of engagements
  • Easily develop a large fanbase
  • Effective way to generate revenue


Similar to the free version, apps are free to download. But at some level or to access premium features, users are required to pay a certain amount. There are three most common strategies that freemium apps follow.

  • Free download paid in-app purchase
  • Free download pay to premium features
  • Free download and features but pay-to-add-free service


  • Easily gather a lot of traffic and downloads
  • Quick and easy revenue-generating approach 
  • Users can pay more than expected if properly developed.


The most challenging and counterproductive pricing model where users have to pay to download the app.

After the popularity of free and freemium, paid pricing model has become a failed strategy. 

The only way out is going with a solid marketing strategy or an existing loyal customer fanbase that understands the importance of your product.

In addition, a 7 day free trial is a good-to-go approach. At least the user will have an idea of what to expect.


  • Instant income generating model
  • No need for a large following or audience to 


Not many app development companies or owners support payium pricing model. 

Under this method, users should pay to download the app and access any additional feature. 

Due to the excessive payment model, such an app doesn’t have more number of downloads. However, an existing loyal audience can help generate revenue streams.


  • Slow but robust income making model
  • New marketing strategies to create a user fanbase

Read More: Cost Of Mobile App Development – Cost Breakdown By App Types & Complexity.

Example of Pricing & Positioning Strategy for App Companies

Example of Pricing & Positioning Strategy for App Companies

Free: Youtube, Tiktok, Facebook, Snapchat, and  Finger on the App 2

Freemium: PUBG, clash of clans, Game of War: Fire Age, and  Candy Crush Saga

Pay: Minecraft, Monopoly, Grand Theft Auto: San AndreasPlague Inc. and HotSchedules

Payium:  Angry Birds, Kingdom Rush Origins HD, and Capcom’s Mega Man X,

What Is The Best Pricing Strategy For a New App?

Freemium pricing model is the best and highly recommended startup app pricing strategy. 

This strategy is gaining popularity and has become one of the most adopted pricing strategies. 

Customers can download the app for free but some features can only be accessed through in-app purchases. 

New apps can attract customers and increase the number of downloads through the free model. And by implementing the right in-app purchase pricing strategy, they can motivate customers to pay for additional features.

App Store Pricing 

The instant way to take your app to the public is through the app store. However, this service isn’t for free. They work on a different pricing model that is described below. 

Apple App Store Fees

Launching your app via Apple app store enables you to reach a target audience of over a billion on iPhones, iPad, Mac, Apple TV, and Apple Watch.

Read More: How To Submit Your App To the App Store

  • 30% for apps and in-app products
  • Except for 15% for subscriptions after 12 months
  • $99 annual fee for the Apple Developer Program
  • $299 annual fee for the enterprise version

Google App Store

Google store is another platform that you can consider to launch your app. Launching your app through Google app store enables you to reach an audience of over 2.5 billion active users spanning over 190 countries.

Read More: How to use Play Console

  • 30% for apps and in-app products
  • Except for 15% for subscriptions after 12 months
  • One-time $25 registration fee for a developer account

Read More: How Much Does It Cost To Put An App On The App Store