Feb 4, 2011 - mobile    2 Comments

maximising revenue streams on the App Stores – Part 1/3

As I get started into an upcoming app for the app store, I could not help but look into what are the best combinations for maximising the revenues.

Very few apps last very long in the app store. So while your app is still fresh in the app store and creating buzz, you have to make the most of it and have more than one way to dip your hand into the customer wallet. It’s always a good idea to make a hit and get huge downloads while your apps has just been published in the app store because after that it gets buried by the horde of newly published apps within the same category. The more downloads you have, the higher the chances you have of making it to the top of a particular app store category. So your first day on the app store is critical, so I would always suggest offering the apps for free to maximise downloads. Let the users know that this is a special launch only promotion where they are getting the apps for free. Something like “*** SALE – this is title of app ***” should do the job of getting people to download the app before you start charging for it.

Let’s have a look at the different options for earning some money from your apps…

  • Free/paid/lite apps (one off payment model)
  • in-app purchases (pay-as-you go model)
  • ads (advertising model)

Now the trick is to combine them to maximise your revenues:

Revenue streams


free very good
lite very good
paid good
free in app purchases very good
free ads good
free in app purchases ads bad
lite in app purchases bad
lite ads good
lite in app purchases ads very bad
paid in app purchases good
paid ads very bad
paid in app purchases ads very bad

Next week we’ll have a look at the breakdown of what works best, why and the best scenarios to apply it to.

Until then take care.

[you can read Part 2 here]