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There are many differences between a paid app and a free one. Obviously, there is a difference in price, but also there is a difference in how they are created and offered to the market. If your enterprise is trying to decide whether its app should be offered free or paid, here are four things to consider when doing so. You Are Strictly A Mobile Enterprise Odds are if your company is strictly a mobile enterprise, then it needs to make profits off of its apps. While you could still offer your apps for free and hope advertising revenue suffices, it is a more constructive idea to offer an app for purchase at a base price, and then seek additional ad revenue if need be. Your App Has A Lot Of ExpensesThe truth is some apps are quite costly to make. Then, you add in administrative and marketing costs, and your company can find itself in deep water rather quickly. For such reason, you may want to play it safe and offer your app as a paid option. Even if you only charge $0.99 per download, that is money that will go directly toward recouping expenses. Otherwise, you will need to rely solely on mobile advertising revenue, which is still in its infancy and can be spotty in terms of producing consistent revenue streams. Your Competitors Have Paid AppsIt is one thing if your competitors offer paid apps, but it is another if they do so and make a profit. If the latter is the case, you may want to consider following suit. If your app closely resembles, or is even better than that of your competitors, then the chances are you can profit just as much by offering it as a paid app. Besides, it is a lot less risky to offer a paid app when your competitors have already done so and have profited. Users Are Willing To PayBy tallying a sample of user feedback before your app's launch, you can tell if they would pay for it. This is the ultimate indication of whether you should offer it as a free or paid option. If users are willing to pay, then by all means, you should charge them for it. If they're not, then you may need to rely on ad revenue instead. In such case, you will likely need to alter the business plan for your app. With the help of your marketing team, you should have no problem producing a quality app that provides a service that users are willing to pay for. Conclusion Offering a paid app is not always a crystal clear idea, although it is a decision that should be made as soon as possible during the design phase. This way you can base the rest of its functions around either seeking profits or adding more benefit to the user. Using the previously mentioned scenarios, you should be able to decide whether your app will work best as a paid app or free option. If the former is the case, then you should put less of an emphasis on seeking ad revenue, and instead, make sure your app has a purpose and quality that is befitting of something users are willing to pay money for. If it isn’t, then they likely won’t buy it and you will have a very hard time finding a profit.

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