Feb 19, 2011 - mobile    1 Comment

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

This is the third and final part of the posts on maximising revenue streams on the App Stores. If you have not read Parts 1 and 2, then please do so now as this post is very much linked to the first two parts.

This post is going to be short and sweet. We will be looking at how to use the different payment options available on app stores to make users discover the app and upgrade the app by purchasing it. The bottom line is to sell your app, users have to find it.  I like to separate the two extremities of upgrading as app discovery and app purchase.

From app discovery to app purchase

For app discovery I would always recommend free and lite apps as they are the ones guaranteed to give you more downloads since they no money is involved and good reviews, if your app is worth it. You can always be making money on app discovery by using ads.

Examples of app discovery:

  • Free apps
  • Free apps + ads
  • Lite apps
  • Lite apps + ads
App discovery App purchase
Free

Paid + in app purchase

Paid

Free + ads
Lite
Lite + ads

Here is when you should use the different app discovery solutions:

Free

Use this app discovery method when you first launch and want to test the market and appeal for your app. Once you see there is too many downloads, meaning your app is great, then start charging.

Pros:
- No strings attached discovery (no ads)
- Highest downloads compared to other app discovery methods

Cons:
- No money made during app discovery but you can always charge if too many downloads

Free + ads

Good method of app discovery since it allows you to make some money while people are discovering your app.

Pros:
- Making money in discovery phase
- High downloads
- Ads prompts people to purchase your app if it’s worth it or ads are interfering with the experience

When to use:
Use when unsure about quality of the experience on your app.

Lite

Lite apps is a great way to entice the customer to buy the app because you are not giving them the full version. It’s like teasing them with a movie trailer.

Pros:
- No strings attached discovery (no ads)
- Great way to tease potential buyers
- High downloads

Cons:
- Alas no money is made

When to use:
Use when you know that your app is awesome, unique and immersive, guaranteeing people will purchase it for full experience.

Lite + ads

Indeed much like the free+ads counterpart, it’s a great way to discover apps while getting some money on the side.

Pros:
- Making money in discovery phase
- High downloads
- Ads prompts people to purchase your app if it’s worth it or ads are annoying
- Limited app functionality further prompts purchase of app

When to use:
Use when you know that your app has a great functionality but unsure if it will sell.

That’s it folks. Hope you enjoyed the 3 parts of this article.