Freemium apps with premium services work better in app stores
Mobile app developers are baffled by the numerous additions of innovative apps to the app stores every day. The increasing competition among mobile application developers and the availability of equally good free apps in the app stores have made app sales difficult in apps stores. The gap between the paid apps and free apps is getting reduced by the day. Even the Apple’s app store has been experiencing a sharp decline in the number of paid apps.
However, authentic reports from analytics companies, such as App Annie and Distimo, reveal that the revenue generated from app monetization has been on the increase both at Apple and Google’s app stores. An in depth research on the different app monetization techniques reveal that developers who switched to the freemium model have made the most from app stores. Of course, quality of the app matters a lot. To ensure better quality and usability of your app, it is essential to follow standards steps in app development.
Contemporary app monetization techniques
Some of the well known ways of app monetization include onetime paid apps, paid apps with in-app purchases, free apps with income generating ads, and free apps with in-app purchases like subscriptions. Of all the models, free apps with in-app purchases seem to work well in app stores. This model of offering free apps and then encouraging users to subscribe addition content or purchase special features is popularly known as freemium model.
Freemium model with premium services
App stores are getting filled with many quality free apps and smart buyers often prefer to test waters before investing in mobile apps. Freemium model enables potential buyers to use the app for free until they are ready to expend on the special features or additional content. Thus the chance of the app being downloaded increases dramatically. Even if the users are reluctant to subscribe, developers always have the opportunity to encourage users to avail premium services.
Freemium model also enables app developers to exhibit the quality of service, which is primary in app sales. Secondly, the increase in number of downloads will escalate the image of the app making it more popular by the day. Branding is as important as income generation in the app marketing arena and freemium model has the capability of doing both. Paid apps are not dead in app stores, but they have metamorphosed into ‘free to download’ yet ‘pay to use’ models.
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