Free apps can make more money than paid apps

  • Published on

  • View

  • Download


  • 1. Free Apps Can Make More Money Than Paid AppsYou might think that giving away a mobile app forfree is a sure way to make zero money. Youd bewrong.According to a report from App Annie, so-calledfreemium apps are leading revenue growthworldwide compared to premium, or paid, apps.Freemium apps are free to download and offersome functionality, but rely on in-app purchasesfor revenue.App Annies report says that revenues forfreemium apps on iOS have increased more thanfour times in the last 24 months. On the Androidside, freemium revenues have grown 3.5 times just in 2012. At the same time, revenues frompaid apps stayed relatively flat.Although there was steady growth in the US, Japan and China had some of the highest revenuegrowth among freemium apps. Androids app store, Google Play, recorded 24 times higherrevenue in September 2012 as in January 2012 in Japan. In China, iOS freemium revenuesincreased nearly 25 times between January 2011 and September 2012. Japans iOS freemiumrevenues saw a 15 times increase in the same period.GigaOm read the report and concluded that freemium apps account for 69 percent of globaliOS revenue and 75 percent of Android revenue. That means that between two-thirds andthree-quarters of all app revenue for iOS and Android comes from free apps that offer somekind of in-app purchasing capability.There are a few common ways to implement freemium features and still make money:* Display ads. Revenue is revenue, and money coming in from advertisers is just as good asmoney coming directly from customers. If users want an ad-free experience, they can pay toupgrade.* Make it a demo. The free version of an app doesnt have to be full-featured. In fact, it couldbe just a demonstration of a paid apps capabilities. Many freemium apps disable saving your

2. progress, for example, letting users try out the functionality before committing to a purchase.* Offer extra content. A free app might be complete in itself, but paying for extra contentimproves the experience. This strategy is often used in games to purchase special weapons orpower-ups.If you have an app idea, Zco Corporation can build it either as a free app with in-apppurchases or as a paid app. Request a call to speak with an Account Executive!Article Source: