Mobile app pricing is one of the hardest things to get right and is critical to establishing a strong user base. 

There are various factors that you should take into account when choosing a pricing strategy for your mobile app. We’ve taken a look at what’s been written on mobile app pricing in recent years, with a focus on the UK, and have summarised everything you need to know. 

In this blog, you’ll learn about:

The main pricing strategies

  • Free
  • Freemium
  • Paid
  • Paidmium

How to choose a pricing strategy

Pricing Strategies

A pricing strategy is ultimately how you generate revenue from your app. Since the day the app store launched, pricing strategies of apps have evolved massively. Now there are four main types to be aware of: free, freemium, paid strategy, and paidmium. 

Before an app is developed, it’s important to know who your ideal user is and ensure your product and price point match up to their expectations. Be prepared for tough competition. Innovation and creativity are critical if you want to make profits on a large scale. 


Free apps are generally developed by companies to attract a large audience and increase brand awareness.

Apps that are free can be downloaded via the app store and the main source of income is adverts. Free apps often exist because businesses want to create a brand name in the market or what to extend their existing business. Free apps have changed the game of the app store and they’re here to stay.


The freemium market is here to stay and it’s one of the best strategies to grow your audience quickly. 

Apps using this strategy are free but have limited functions, giving users the chance to try a few features and access others at a cost. 

There are three main types of freemium apps. 

1 When users download an app and have access to limited features and need to upgrade to unlock additional functionality

2 All features are available but for a limited time, requiring users to pay after an initial trial period

3 The app is free but contains adverts, users are asked to pay to remove ads

If you want to attract a large audience then free or freemium models are a proven approach to adopt. 

It’s worth bearing in mind that users tend to use free apps to test features and quality before considering an upgraded version. So be sure to have a solid foundation of quality assurance in place before you launch.


As the name suggests, paid apps require payment by the end-user on download. Apps like this aren’t receiving much hype and the trend is said to be in decline as people move to free or freemium apps, as rivals create apps that share similar features and compete by offering free or freemium plans as alternative products.


Paidmium combines characteristics from paid and freemium models. The users are asked to pay but if they want to access enhanced features then they have to buy additional packages.

Choosing the right pricing model 

The very first step is to understand which pricing model is right for your company and how it will benefit your customers. 

You should consider:

  • The purpose and nature of your app, what need are you addressing
  • Your audience, is it a specific user group or intended for the mass market?
  • The level of competition, are others already offering similar products, how will you compete?
  • The pricing strategies of competitors, how will yours compare?
  • Funding, how quickly do you need to generate revenue?
  • Churn, factor in a realistic churn rate when forecasting your revenue

If you’re considering launching a new app or would like to discuss your pricing strategy get in touch, we’d love to hear all about it.

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