Why Free And Paid Apps Can Have Different monetization Models
With free apps, there really is no download threshold required. Nothing is stopping the average user from downloading your App. They can simply download the App at a whim and test it out. Free Apps generally get more downloads than paid apps. That’s why they are so easy to come by.
I’m not saying that free apps make a better user experience than their paid counterparts. I’m only saying that it doesn’t cost you anything to give people an app that they can freely download. With a paid app, the developer has to charge you for the right to sell a license to use the software. With free apps, the authoring platform may be free, but the app is free. With a free app, you have absolutely no monetary investment.
Free Apps vs. Paid Apps: There are apps available today that are free and then there are those that cost money. You might not think that there’s much of a difference when it comes to in-app purchases, but you’d be wrong. It makes a difference. For example, Family Sharing uses in-app purchases only.
Google Play vs. The iPhone: Google Play offers a free version of their Android mobile app, which costs $2.99. You have to pay to unlock the paid version of the app, which costs $4.99. When you take that into consideration, you quickly see that a free version of an iPhone app that is popular is going to cost way more than a similar, paid app on the Play Store. When it comes to monetization, the free version just doesn’t have nearly as many options as the paid version does.
App Revenue vs. Revenue Source: Many people think that there’s a clear difference between apps that earn revenue and those that don’t. However, this isn’t true at all. When it comes to apps versus free apps, the free apps have a huge leg up because they already have a strong user base. They have a large list of people who are willing to download their app. On the other hand, the paid apps have a very small user base and very little, if any, momentum.
Platform Support vs. Mobile Web Apps: As we’ve seen with Facebook, it’s important to remain competitive. The world is seeing more companies jump on the mobile web platform. If you want to be successful, you need to make your mobile apps compatible with as many different devices as possible. By doing so, you will be able to tap into a massive resource of customers who are constantly searching for new information on their favorite devices.
User Interface vs. User Experience: Another big difference between paid apps and free apps is the user interface. While free apps get into the basics, paid apps go above and beyond. It’s not uncommon to see a paid app that has 100s of different animations, pop-ups, and more. While some users may not like these, others will absolutely love them. The right user interface can make or break an app.
Push Notifications vs. Notifications: One way that paid and free apps differ is in terms of push notifications. Push notifications are essentially promotions and announcements from the store about new apps that are available. This can be used to build a customer base and increase sales.
No Ads vs. Mobile App Revenue: It’s important that you stay away from ad heavy monetization models if you want to succeed on the mobile platform. Many companies choose to use these types of models, and they can turn off thousands of potential customers by simply missing out on potential revenue. While there are many great free apps that don’t push ads, you should still make sure that your mobile app revenue isn’t completely dependent on ads being shown.
What Kind of Customers Will Use Your App: Just because there are no ads or other monetization methods on premium apps doesn’t mean that there won’t be plenty of customers using this platform. You need to consider just what type of platform your target market is. If you want to target iPhone users, for example, then an iPhone app would be the right choice for you. On the other hand, if you want to target people on a tablet device, then an Android app could be a more appropriate choice. The right type of audience will help you determine what kind of monetization strategy you should pursue.
How Active Is Its User Base: A lot of the success of a free or paid app really comes down to how active its user base is. A large number of people won’t even give it a second glance if the app doesn’t have any great content, great graphics, or other unique selling points. That being said, you also don’t want to simply market your app based on how many users it has. Instead, look for an ideal monetization model that works for the type of app you create. This will ensure that you don’t waste time and energy promoting a program that doesn’t have enough potential for downloads.