The number of apps released for free, supported by an alternative monetization strategy is growing. Freemium __is here to stay. This business model has proven profitable. Why?
People don’t like to pay for apps
Mobile users spend more on upgrading freemium apps than on apps they can’t get for free. Listen smarter.
The free tag is highly appealing to people. Generosity catches audience’s attention. That’s why free is a winning and lucrative marketing strategy.
Think of it in terms of gift giving. We all love getting gifts and we like people who have given us a gift. It’s always happily accepted. We get closer to the provider. It creates connection with the brand.
It works when it comes to apps too. Giving away your app for free allows users to hear about it, understand its value and reward you for it afterwards.
It raises the visibility of the app. Is it useful? Or is it entertaining? Users will start talking about it. And people value stuff that gets talked about.
The mobile app world is a noisy place. Competition is fierce. If your app is waiting to be discovered, embrace free.
A study conducted last year by the analytics firm App Annie showed revenue from freemium apps eclipsed that of premium ones where the iOS and Android are concerned.
In the long run, free always pays off.
What are freemium apps?
Freemium is formed from the words free and premium. A freemium app is an app that a publisher provides free of charge in order to eventually make money from it by charging for upgrades or other additional services.
A freemium app is usually not the full version of the app or does not cover the entire sphere of features.
Other freemium apps are available with full spectrum of service for a trial period after which the users will pay for using it.
Freemium model monetization strategies
There are three main options. You just have to decide which type of monetization model to use.
You can combine those monetization strategies too. You could offer a free app with ads and then charge money for the ad-free version.
Here are some successful free apps, using different monetization strategies:
All these freemium apps commit to be the best in their niche. These companies give away a great product to the people until they’re ready to pay for it. Revenue is the aftershock of courage and usefulness.
Generosity pays off. Free enables your app to spread. People will follow and get hooked. Just give it away to cash in.
