How much commission do the App Store and Google Play take?

At the time of writing, the standard rate was 30%, with 15% on the first 1 million US dollars of annual revenue for developers in small business programs and reduced rates for subscriptions. Check official sources for current terms.

Can I use my own payment system in my app?

Digital goods and features generally must use store billing, while physical goods and services are exempt. Some countries allow limited alternatives under local regulations.

How long should a free trial be?

There is no universal answer. Match the trial length to how quickly users experience your app's value, and test different lengths where possible.

In-App Purchases and Subscriptions: App Pricing Strategies

In-app purchases and subscriptions are the most common ways to earn revenue from mobile apps. Yet choosing the right model and price is often harder than writing the code. A poorly designed paywall can hurt both revenue and user satisfaction. This article covers monetization models, store commissions and pricing strategies that work in practice.

Types of In-App Purchases

Type	Description	Example
Consumable	Used up and can be bought again	Game currency, extra credits
Non-consumable	Bought once, permanent	Remove ads, full version unlock
Auto-renewable subscription	Renews each period until cancelled	Monthly or yearly premium
Non-renewing subscription	Valid for a set period, no auto-renewal	One season of content

Digital goods and features generally must use the stores' own billing. Physical goods and real-world services are exempt, and some countries now allow limited alternative payment options under local law.

Consumables suit repeat usage like credits, non-consumables suit permanent unlocks, and auto-renewing subscriptions suit ongoing value. Many successful apps combine two types, for example a subscription plus a one-time lifetime option.

Store Commissions to Plan For

Standard rate: 30% on in-app purchases.
Small business programs: 15% on the first 1 million US dollars of annual revenue through Apple's Small Business Program and Google Play's equivalent.
Subscriptions: on Apple, 15% after a subscriber's first year; on Google Play, auto-renewing subscriptions were at 15% from day one.

These figures reflect the situation at the time of writing. Rates, programs and regional exceptions change, so check Apple's and Google's official pages, and remember store prices include taxes that affect your net revenue.

Choosing a Monetization Model

Paid upfront

Simple, but users must decide before trying the product, so conversion is often low. It can work for strong niches or known brands.

Freemium

Free to download, with advanced features paid. The key question is what to give away: too little and users leave before seeing value, too much and there is no reason to upgrade.

Subscription

Best for apps that deliver ongoing value: content, cloud sync, fresh data or a service. Revenue is predictable, but users reassess value at every renewal.

One-time unlock and hybrids

Utility apps can face subscription fatigue, and a one-time full-version purchase can feel fairer. Offering both a subscription and lifetime access is common. Ads are often combined with a remove-ads purchase or subscription.

To choose, ask a few questions. How often will people use the app? Does it create new value over time, or is it a tool used once? Do you carry ongoing per-user costs such as servers, content or AI inference? If you do, a subscription is often the only sustainable option, because selling unlimited ongoing service for a single payment can turn loss-making as usage grows.

Subscription Pricing Strategies

Price on value, not only on cost or competitor prices.
Highlight the annual plan with a discount versus monthly.
Offer a free trial sized to how quickly users experience value.
Use introductory offers, supported on both stores.
Adjust regional prices for purchasing power instead of relying only on automatic conversion.
Keep choices few: two or three plans are usually enough.

How to test pricing

Treat price as something you test, not set once. Change one variable at a time (price, trial length or paywall design), and watch long-term metrics as well as immediate conversion, since a lower price can lift conversion while lowering total revenue. When raising prices for existing subscribers, follow each store's notification and consent rules, which differ by platform and region.

Paywall Design

A short list of concrete premium benefits.
Clear price, period and renewal terms, which store rules require.
An easy-to-find close button and Restore Purchases.
Links to the privacy policy and terms of use.

When the paywall appears matters as much as how it looks: after onboarding, at a premium feature or when a limit is reached. Flexible UI/UX design makes testing these placements practical.

Technical Setup and Metrics

Use StoreKit on iOS and Google Play Billing Library on Android.
Validate purchases server-side and track subscription changes with App Store Server Notifications and Real-time Developer Notifications.
Handle renewals, cancellations, refunds and billing failures.
Track trial conversion, monthly recurring revenue, churn and revenue per user.

We build subscription and purchase infrastructure this way in our own apps and in client mobile app development projects. If you want help choosing a model, redesigning your paywall or implementing billing, contact BernSoftware.