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Offering a free app is definitely one of the most effective models, but how do you make money? Maybe that's not the goal of your app.
Completely free: these apps usually act as add-ons to an established product or service. Companies also create free apps to facilitate customer service and to aid customer retention efforts. If you don’t gain users quickly, it will be difficult to keep your app running and profitable- if you’re relying on in-app advertisments.
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There are three main types of freemium apps:
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The Paid app model is the simplest type of pricing strategy for an app because people pay once to download the app and it is free to use including all its features.
This app pricing strategy is the most common app pricing strategy but it is also the least effective because the user won't be able to get a feel of the app without shelling out money.
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The user pays for the app, but there are additional features that can be accessed for an additional cost.
Heads up is one Paymium app that successfully draws people in. Games that people are familiar with, such as Minecraft, the game of life and NBA 2K18, do great with a Paymium strategy.
This pricing model works best when the value of the app comes from its content.
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Users pay a monthly or annual fee (sometimes Auto-Renewing) to continue using your app. Some app categories using this strategy are newspaper apps, dating apps and music streaming apps like Apple Music.
A subscription is also somewhat of a softer approach than asking for direct payment, as it makes the user feel like they’re paying only as long as they continue to find value in the app. Those who choose to subscribe show commitment to your product.
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At the end of the day, you have to consider many different factors before making your choice, including:
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App Annie surveyed 1,200 app developers last year to see how companies currently price their apps. The results show that In-App purchases and In-App advertising lead the pack.
Those developers revealed that if they were to change their strategy, they’d be interested in a subscription-based model.
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