---
title: "Which Pricing Model Should Companies Choose for Paid Apps?"
locale: "en"
language: "en-HK"
published: "2016-04-15T11:56:37+08:00"
updated: "2026-03-17T23:07:31.496Z"
canonical: "https://accordhk.com/blog/which-pricing-model-should-companies-choose-for-paid-apps-290"
---

# Which Pricing Model Should Companies Choose for Paid Apps?

One-time app purchases offer a simple deal: customers pay once without renewal fees. The article argues that continued user growth can sustain this model and questions whether subscriptions can solve small companies’ growth problems.

## In brief

The article argues that one-time app pricing can survive through steady new-user growth. Subscriptions may increase revenue from existing users, but risk shrinking the user base without solving the underlying growth problem.

Generally, [after developing an app](<http://app-developer-hongkong.com>)，[, developers](<http://hongkongappdeveloper.com>) sell it for a one-time fee. This is a very simple business model, and customers like it. Once they pay to [buy the app](<http://hongkongappdeveloper.com>), they do not need to pay renewal fees later. It seems a fair deal for both customers and developers.

However, many [software publishers](<http://appdeveloperhk.com>) later switched to a paid subscription model. The usual argument is that modern [apps](<http://appdeveloperhk.com>) are not static: developers need to keep [fixing bugs](<http://appscompanyhk.com>) and adding new features. If people keep using a piece of software, it seems only fair that they should keep paying. Providing updates to users who have paid only once feels somewhat hard to accept.

How can a business survive with a one-time [paid app](<http://appscompanyhk.com>) model?

The secret is growth. If an [app](<http://hkmobiledeveloper.com>) attracts new users every day, those new users will pay for the [app](<http://android-app-development-hk.com>). Providing updates to existing users does not cost much either. So why are other companies so eager to adopt a [paid subscription](<http://android-app-development-hk.com>) model? Because they have stagnated. They have little appetite for growth, since the users who need their software are already using it, and paid updates do not work. As a result, the only way for these companies to increase revenue is to charge existing users more.

The only thing that is hard to understand is why small companies also want to adopt a [paid subscription](<http://mobileapplicationdevelopmentcompanyhk.com>) model. Are they also facing stagnant growth in their user base and hoping to improve their bottom line? If so, they are finished—subscription fees will only shrink their user base further, leaving the underlying problem of insufficient user growth unresolved.

http://www.hksilicon.com/articles/1058812

## Frequently asked questions

### How does a one-time app purchase work?

Customers pay once to buy the app and do not need to pay renewal fees later. The article describes this as a simple model that offers a fair deal for customers and developers.

### Why did software publishers switch to subscriptions?

The article explains the argument that apps require ongoing bug fixes and new features. From that perspective, users who keep using the software should keep paying.

### How can one-time app pricing sustain a business?

The article identifies growth as the key: new users buy the app each day, generating revenue. It also states that providing updates to existing users does not cost much.

### Why does the article question subscriptions for small companies?

It argues that subscriptions can shrink the user base when growth has already stalled. Charging existing users more does not resolve the underlying problem of insufficient user growth.