Do the math.

How much money do you want to make this year from your app(s)? Do the math, because it gives you a goal to work toward. It also helps when pricing your app (the price should mostly depend on how much value your customers get out of your app, which is sometimes difficult to figure out, unless your app directly saves them money or makes them more money in some easily quantifiable way.) The math should be only one factor that helps you decide how much to charge, but it’s an important thing to consider. For instance, if you want to make $200,000 from one of your apps next year, you’ll need to make $16,666 per month. If you charge $8 a month (in my opinion you should only be charging a price that low when you don’t have a lot of overhead, so you can still make a profit or if your main competitors have low-priced or free versions as well), you’ll need to convince 2083 customers to use your product. If you’re charging, say $40, you only have to sell your app to 416 people. I know I’d much rather sell to 400 people than 2000.

So, in my opinion, what you should really be doing is making sure that you build an app that provides at least $30-$50 a month in value, so you make things easier on yourself, especially because you probably don’t have a sales team

Are My Sites Up is in a competitive market, so prices for it start as low as $35 per year, or $2.91 a month. However, every web app I’ve built after that has been much more targeted and therefore I have been and will be able to charge more for them. For instance, with Stunning, I’m helping my customers to keep their revenue flowing by making it easy for them to keep their customers’ billing info updated. If I charge $40 a month for it, and you have a moderately busy web app with, say $30/mo pricing… if Stunning saves you 2 customers per month, it’s more than paid for itself, especially because valid billing information is good for years, potentially. That’s a super easy sell to potential customers. Make it easy for potential customers to save money or make more money, and they’ll buy what you’re selling. It’s all about providing value.

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