What to charge for your new app

As the average selling price for applications continues to decline regardless of platform, it becomes increasingly important to find a good price. Three prominent pricing models and techniques remain for those entrepreneurs who wish to make profits and satisfy their customers.

One such option is called the ‘freemium’ or lite option. This option is fairly simple. The basic premise is that you allow your user to start out with your application for free, then they are hopefully so impressed that they are willing to pay for a more advanced version. This model is very popular with gaming apps like those created by iPhone app developers Los Angeles, as the user develops their skills in the game and pays for the more advanced version once they feel confident enough in their skills to do so.

Another option is in-app purchases. In-application purchases are used in both Android app development and in Apple app development. You allow your user to purchase the app then you charge more for additions to the application such as more advanced features, new levels, or useful items.

Third, you have in-app advertising. It is important to balance the intrusiveness of your advertising with user expectations so that you don’t overwhelm your users with ads and drive them away. Many mobile app developers Los Angeles use this, since other forms of advertising are not as effective for a mobile user base.

So, what should you charge for your app? It depends on a variety of factors, most importantly user expectations. Free or a dollar is a fair rate for an uncomplicated app, but the more complex apps are $2.99-4.99 and the most complex apps are even more expensive. Know your app and what your customers will pay and you will know what to charge.


Halcyon Innovation is one of the most reliable iPhone app developers in Los Angeles. Call to get a free quote.