Nearly 70% of mobile apps are never downloaded more than 1,000 times, yet some apps generate millions in revenue with smart app pricing strategies. The difference isn't always about having a better product—it's about understanding how to price it properly. Getting your mobile app pricing wrong can kill even the most brilliant app idea before it has a chance to succeed.
I've watched countless developers launch amazing apps that failed simply because they chose the wrong pricing model. Some went freemium when they should have charged upfront; others set subscription prices so high that users ran away immediately. The truth is, app monetisation pricing isn't just about picking a number and hoping for the best—it's about understanding your users, your market, and what drives people to actually pay for apps.
The right pricing strategy can be the difference between your app thriving or dying in the app stores
Whether you're debating freemium vs paid app models, trying to figure out subscription pricing, or wondering about in-app purchases, this guide will walk you through everything you need to know. We'll cover the different pricing models, show you how to test your prices, and help you avoid the common mistakes that sink most apps. By the end, you'll have a clear roadmap for pricing your app to maximise revenue.
Understanding App Pricing Models
Right, let's talk about the different ways you can make money from your app. I've worked with clients who've tried every pricing model under the sun—some have made millions, others have barely covered their development costs. The difference? Understanding which model actually fits their app and their users.
There are four main pricing models you need to know about. Free apps make money through advertising; paid apps charge users upfront; freemium apps are free to download but charge for extra features; and subscription apps charge users regularly for ongoing access.
The Main Pricing Models
- Free (Ad-supported): Your app is completely free, but you show adverts to make money
- Paid: Users pay once upfront to download your app
- Freemium: Free to download, but premium features cost extra
- Subscription: Users pay monthly or yearly to keep using your app
Here's what I've learned from years of testing these models: there's no "best" option that works for everyone. A productivity app might thrive on subscriptions, whilst a simple utility tool could work better as a one-time purchase. Games often do brilliantly with freemium models, but some premium games charge upfront and do perfectly well.
The key is matching your pricing model to your app's purpose and your target audience's spending habits. We'll explore each model in detail throughout this guide.
Freemium vs Paid Apps—Which Works Best?
I'll be straight with you—there's no magic answer here. Both freemium and paid apps can work brilliantly, but they work for different reasons and different types of apps. After working with hundreds of clients over the years, I've seen both models succeed spectacularly and fail miserably, often for the same app idea.
Freemium apps give users a taste of what you're offering before asking for money. Think of it as letting someone try before they buy. The catch? You need loads of downloads to make decent money since only a small percentage of users will actually pay. We're talking about conversion rates of 1-5% in most cases—sometimes even lower if your free version is too generous.
When Freemium Makes Sense
Freemium works best when your app has ongoing value that users will want to unlock over time. Games, productivity tools, and social apps often thrive with this model because people get hooked on the basic features first.
- Your app benefits from network effects (more users make it better for everyone)
- You've got clear premium features that add real value
- You can afford to support lots of free users while waiting for conversions
- Your app category is crowded and people won't risk paying upfront
When Paid Apps Work Better
Paid apps cut straight to the chase. People pay once and get everything—simple as that. This model works particularly well for utility apps, professional tools, and anything that solves a specific problem right away.
Don't try to hedge your bets by offering both a free and paid version of the same app. Pick one model and commit to making it work properly—split focus usually means both versions perform poorly.
The truth is, your app pricing strategy should match your app's purpose and your target audience's behaviour. If you're building something people need immediately and are willing to pay for upfront, go paid. If you need to prove value over time, freemium might be your best bet.
Setting Your Initial Price Point
Right, let's talk about the elephant in the room—what should you actually charge for your app? After years of working with clients on their pricing strategies, I can tell you there's no magic formula that works for everyone. But there are some solid principles that'll help you get it right from the start.
Research Your Competition
Before you pull a number out of thin air, spend some time looking at what similar apps are charging. I'm not saying copy their prices exactly, but you need to understand where you fit in the market. If every productivity app in your category costs £2.99 and you're planning to charge £9.99, you better have a bloody good reason why you're worth three times more.
Start Conservative, Then Test
Here's something most people get wrong—they think they need to nail the perfect price on day one. You don't. In fact, it's often better to start slightly lower than you think you should, get some downloads and reviews, then gradually increase your price. You can always raise prices later; bringing them down looks desperate and damages your brand. I've seen apps double their price after launch and actually increase their revenue because higher prices made them look more premium.
Subscription Pricing That Actually Works
Getting subscription pricing right is tricky—mess it up and you'll either scare people away or leave money on the table. I've seen apps charge £9.99 a month for features that barely justify £2.99, and others undervalue themselves completely. The sweet spot exists, but finding it takes some thought.
Most successful subscription apps follow a simple rule: the monthly price should feel like pocket change compared to the value delivered. Netflix works because £10 monthly feels reasonable for unlimited entertainment; productivity apps succeed when they save users more time than the subscription costs. Your app monetisation pricing needs that same balance.
Starting With The Right Foundation
Begin with annual pricing that offers genuine savings—typically 20-30% off the monthly rate. This isn't just about revenue; annual subscribers stick around longer and provide predictable income. Many apps make the mistake of offering tiny annual discounts that don't motivate commitment.
The best subscription prices feel invisible to users because the value they receive makes the cost seem insignificant
Free trials work, but be smart about duration. Seven days suits simple apps; complex productivity tools need 14-30 days for users to build habits. The key is giving enough time to experience real value without letting people forget they're on trial. Remember, your mobile app pricing strategy should make subscribing feel obvious, not forced.
In-App Purchases and Premium Features
Getting in-app purchases right can be tricky—I've seen apps make brilliant money from them and others completely mess it up. The key is making sure your premium features feel worth it, not like you're trying to squeeze every penny out of your users.
Think about what parts of your app people use most. Those are your goldmine features. Maybe it's extra storage, advanced editing tools, or removing those annoying ads. The trick is offering something that makes people's lives easier or more enjoyable without making the free version feel broken.
Types of In-App Purchases That Work
- One-time purchases for premium features or tools
- Consumable items like extra lives or coins
- Content packs with new levels or themes
- Ad removal options
- Enhanced functionality or professional tools
Pricing your in-app purchases requires some thought. Start with lower prices—99p to £2.99 works well for most apps. You can always test higher prices later, but starting too expensive will put people off straight away.
Making Premium Feel Premium
Your premium features need to feel special. Give them clear names, show users exactly what they're getting, and make the upgrade process smooth. Nobody likes nasty surprises when they're about to spend money. Being transparent about what's included builds trust and gets you better reviews too.
Testing and Adjusting Your Pricing Strategy
Getting your app pricing strategy right isn't a one-and-done job—it's an ongoing process that requires constant tweaking and testing. I've worked with clients who've launched with what they thought was the perfect price point, only to discover weeks later that a simple adjustment doubled their revenue. The mobile app pricing landscape changes constantly; what worked last month might not work today.
A/B Testing Your Prices
Start by testing different price points with small groups of users. You can split your audience and offer the same app at different prices to see which converts better. This works brilliantly for both freemium vs paid app models and subscription pricing. Don't just test dramatic price changes either—sometimes a £0.50 difference can make or break your app monetisation pricing strategy.
Watch Your Metrics Like a Hawk
Keep an eye on conversion rates, user retention, and lifetime value. If you notice downloads dropping but revenue per user increasing, you might be onto something good. The opposite could mean your price is too high for your target market.
Test price changes during different seasons and events. Back-to-school periods, holidays, and even payday weekends can dramatically affect how users respond to your pricing.
Remember, pricing isn't just about maximising immediate revenue—it's about finding the sweet spot where you attract quality users who stick around and engage with your app long-term.
Conclusion
After working with hundreds of app projects over the years, I can tell you that pricing isn't something you set once and forget about—it's an ongoing conversation between you and your users. The apps that make the most money are the ones where founders pay attention to how people actually use their product, not just how they think people should use it.
You've now got the tools to make smart pricing decisions. Whether you go freemium, paid upfront, or subscription-based, the key is starting with one model and testing it properly. Don't try to be everything to everyone from day one; pick the approach that matches your app's core value and your users' behaviour patterns.
The most successful apps I've worked on didn't get their pricing right immediately. They launched with a reasonable strategy, watched their numbers carefully, and adjusted based on real user feedback—not just what sounded good in meetings. Your pricing will evolve as your app grows and as you learn more about what your users actually value.
Start simple, test thoroughly, and remember that the perfect price is the one that balances user happiness with sustainable revenue. Get that balance right, and you'll have an app that not only makes money but builds a loyal user base that grows over time.
