What strategy you should adopt to develop mobile apps (freemium & paid)?
Answer by Ganga Bhahirathi:
Having a clear picture of the monetization model for your app from the beginning is crucial for validating the idea of app development. Mainly there are three pricing models that your company needs to follow. According to the report by Distimo, 71 percent of revenue was brought in by free apps with paid revenues of 24 percent and 5% revenue from paid apps.
Here are some app monetization models, to improve the revenue generation of your company:
1. Freemium Apps and Games
2. One-time Paid Apps
3. Free Apps with Paid Advertisements
4. Paid Apps with Paid Features
Freemium App and Games
Freemium for apps and games is the popular monetization option for games and apps. It is considered to be one of the best applications for generating revenue. According to Distimo’s report, in-app purchase ranking is 76 percent in accordance with the entire revenue generated in Apple App Store in the US and 90 percent in the Asian markets.
Freemium apps or game is free for any user. The only fact is that it would be available with limited features, virtual goods and contents. By placing an in-app purchase, the users can access the premium version of the app or game which includes all the desired features. For monthly updates, this route subscription is enough.
Paid Apps with Paid Features
This monetization model is considered to be hybrid and it has raised much criticism from users. It is a bit tricky to develop an app using this model and only through clever moves a company can gain value proposition. But there are companies who opt for this recent development.
Many have the opinion that it’s unfair to charge the user for downloading the app and again making they pay for gaining additional features. Some of the apps built oncan be considered as the major example of this kind of app development model.
an award winning cross platform app development company, building mobile apps in business and enterprise domain.