Want to Set the Best Pricing Model for Your App?
Well, you have just finished building an app and now confused how much price you should quote for your app. This confusion is quite common and almost every developer has it in his/her mind. This is because making a decision about setting the price of an app or keeping it free is even a difficult task then just developing it. After all, it is a difficult task in maintaining a balance between the cost of production and the maintenance of an app.
If the pricing is set appropriately, your app will reach its success value because people will not hesitate to buy it. However, if you have set the pricing to a value which does not match the app’s expectations, you will surely see a downfall in your business success ratio.
There are various factors which are needed to be taken into consideration for an effective pricing.
Free- The Buzzword
Who doesn’t like free stuff? Almost everyone likes it! User loves everything that is free to the core. Many of the free apps and games may not be a good deal for some developers but they can help you generate a good amount of revenue.
The developers can earn revenues from ads, and other add-on features from their free app. Not everything that is free is a waste, the same goes for the android apps.
If you are a beginner, it is better to keep your app free for the users so that they can know the essence of your app, get addicted and later on they will be bound to pay when the free version will be converted to pay ones.
Freemium Version Policy
You must have seen many apps which are free at the start but if you want more advanced functionalities, you will have to pay for the premium version. This policy can be the most successful one in making great revenues from your apps.
It is much better to set the freemium version for your apps because customers usually like to test any app then go for the advanced features by paying for that app later.
In some cases, the revenue generated from the freemium apps and games was far more than the directly paid apps.
In-App Purchases
This tactic can be used by developers who want to keep their apps, games free yet want to generate revenues from it. Yes, the In-App purchase method can prove to be one of the best methods for generating a huge amount of revenue.
In this tactic, after a certain level of gaming or app usage, if you want to continue further or buy some powers in some of the games, you will have to pay for that stuff. Users tend to buy the services most of the time and this can be one of the biggest reason for the generation of revenue.
In-App Advertisements
In-App advertisement can be another successful tactic for the generation of revenues through ads. You will get paid once your app is downloaded but you will continuously get the revenues from ads which will run inside your app.
Advertisement opportunities have been broadened over the years. Ads can be of various categories ranging from small banner ads to pop-over. The greater will be the value of an ad, the greater amount of profit you will earn from your app.
However, you will have to keep a balance on the user expectations as we all know how annoying these ads can be. In many of the cases, users expect that only the free versions of all paid apps will have intense ads.
There is no fixed price for charging any app. You should take everything into consideration as a developer before deciding the launch price of your app. A slight mistake of yours can be a life lesson for any developer.
A proper analysis should be done as per the customer’s requirements, their interests, their willingness to pay for your apps and much more. A safer way is to release the app with a higher price tag then lowering its price from time to time.
But as the saying goes, the launch time is the most crucial time for getting the users attention, so don’t charge heavily, Be reasonable.