Just wanted to solicit some feedback from the community on this.
From a DEVELOPER's perspective, what do you think will result in better sales for a paid app
1) Offering a separate "lite" version for free in addition to the pay version
2) Offering JUST the light version and allowing the user to download the pay version as an in-app upgrade
Just wanted to solicit some feedback from the community on this.
From a DEVELOPER's perspective, what do you think will result in better sales for a paid app
1) Offering a separate "lite" version for free in addition to the pay version
2) Offering JUST the light version and allowing the user to download the pay version as an in-app upgrade
Please give reasons for your answer. Thanks.
I voted dual versions b/c it allows you to give promo codes to reviewers, whereas in-app upgrade does not. Although in-app upgrade seems MUCH simpler and less of a headache.
I voted dual versions b/c it allows you to give promo codes to reviewers, whereas in-app upgrade does not. Although in-app upgrade seems MUCH simpler and less of a headache.
You can actually just create a new target for your project and it's pretty easy to maintain
As for the original question, I would say....BOTH, have a free lite version with in-app purchase to full AND a full version. That way you get the high downloads exposure from the free version and some people just browse paid apps (I never really look at free apps myself) so you'll get them too
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You can actually just create a new target for your project and it's pretty easy to maintain
As for the original question, I would say....BOTH, have a free lite version with in-app purchase to full AND a full version. That way you get the high downloads exposure from the free version and some people just browse paid apps (I never really look at free apps myself) so you'll get them too
Interesting answer Rudy. I'm curious though, if you allow both methods, the "upgrades" don't count as "sales" for the paid app right? That would dilute your sales figures somewhat I would think.
Also, is there a way to indicate that the in-app upgrade version is the same as the paid version? For example, can you actually change the title of the app from "foo lite" to "foo premium" in response to an in-app upgrade? If you could, then what happens if the user for whatever reason happens to download "foo premium" as well. I would imagine this scenario would get kind of confusing.
Forgive my ignorance, I don't actually have an app on the app store yet, but I wanted to explore my options.
Interesting answer Rudy. I'm curious though, if you allow both methods, the "upgrades" don't count as "sales" for the paid app right? That would dilute your sales figures somewhat I would think.
I'm about to release a new app, and I'm debating the same exact thing. I think the paid app has a good chance to get into a top list; and I'm concerned that a free-with in app purchase version will pull sales away from the pay version. But then again, maybe with in app purchase the free version could soar to the top of free as well....what to do. How do IAP purchases of a free app affect its ranking...does it even at all?
Scenario 1) Free Version and Pay Version
Pro: Can use an affiliate link during the Up-Convert
Scenario 2) Free Version with IAP and Pay Version
Pro: More Seamless Up-Convert
Con: May decrease ranking of Pay Version
Based on the above; it seems like that if you feel your app has a good chance to hit some top lists...it may actually be better to do scenario 1. Thoughts?
Also another interesting side effect of having the in-app purchase is that you get to see how many people purcahse it because they enjoyed the lite version. But the decrease in ranking is a bad side effect...
__________________ My Games: My Blog 13" Macbook Air 1.7Ghz Core i5, 4GB DDR3, Intel HD Graphics 3000 iPhone 4S - PSPGo - 3DS - Wii - PS3 - 360
How do IAP purchases of a free app affect its ranking...does it even at all?
Scenario 1) Free Version and Pay Version
Pro: Can use an affiliate link during the Up-Convert
Scenario 2) Free Version with IAP and Pay Version
Pro: More Seamless Up-Convert
Con: May decrease ranking of Pay Version
I'd say the 2 versions is the better option, so long as you include a link to the paid version in the app store. From the users point of view I don't see much difference between in app purchase and hitting a button that takes you to the app store version, they just want to accomplish a task, an extra click or two is not an issue in my opinion.
You also get 2 apps in the store versus 1. This gets you
- twice the number of keywords
- twice the exposure in the new releases lists
- a seperation of the poor app ratings likely to occur for the free app from the paid app rating
- the opportunity to get exposure for your app in more than one category at a time
I think the concern about how 'seamless' the upgrade process is for the user is a bit of a red herring, its not enough of a difference to put off a user in my opinion. And in choosing that option you lose the advantages above, which outweigh that one single advantage that may not even make a difference.
Just wanted to solicit some feedback from the community on this.
From a DEVELOPER's perspective, what do you think will result in better sales for a paid app
1) Offering a separate "lite" version for free in addition to the pay version
2) Offering JUST the light version and allowing the user to download the pay version as an in-app upgrade
Please give reasons for your answer. Thanks.
A few real world points:
1. Any business that has free versions to upgrade products (the equivalent of in-app purchase) can tell you the conversion rate is less than 1%. I have tons of data from many clients to confirm this. So if you are looking at this as a money maker in a real sense then forget it. It is more like long-term, low-level advertising.
2. Another thing established businesses will tell you is the consumer who gets a free anything to upgrade later is NOT the same consumer as the one who pays for the product on the spot. So the premise that the free in-app purchase app is targeting the same group is not borne out by any consumer data in existence. So developers that have this discussion are having a useless conversation with themselves. The free downloaders and paid users are different consumers.
3. Unless your app is sticky (a game or something that they use a few times a week), in-app purchase will have same effect on your sales as online ads. Again, expect a conversion rate of less than 1% of the multiple session user. Which means way less than 0.5% conversion for total downloads because most free downloaders are not multiple session users.
4. Pricing is more important than number of downloads. Many of the apps in the store are priced wrong (i.e. way under-priced). It is obvious that the developers never studied or polled their target audience - thus they never effectively monetize that target. Also, it is obvious the established companies have done this research because their apps are priced much higher. Understanding what the consumer values and is wiling to pay for is more important than the functionality in the app. Apps should be priced based on the value to the consumer - just like any other consumer product.
6. Building an app and selling an app are two different things. One is developing software, and one is running a business. Asking a developer on a forum which really gets higher sales is like a business executive asking the developer for a consumer demographic breakout of their newest product. Anecdotal evidence and a couple successes here and there are useless and actually dangerous for making hard business decisions. It is the aggregate of consumer behavior across products that is the determinant here.
Case in point - Why is Steve Jobs successful? He knows how to develop AND he also knows how to run a business. And I can tell you, he never asks his standard developers for business advice - he hires them to develop and that's it.
The answer based on known consumer behavior: 1) a paid version, 2) and a free with a link to the paid one in the store, which should really be looked at as targeted, low-level, narrow advertising. The two apps are targeting two different consumer demograhics and that is the only way to attract both and get the most total sales possible. Unless you want to spend the time and energy with in-app purchase, there is no difference to the consumer who wants to buy your app. Adding a link to the paid one the store takes only 2 minutes. From a business perspective a much better ROI than dealing with in-app purchase.
Last edited by falcon5280; 03-22-2010 at 01:43 PM.
I'm about to release a new app, and I'm debating the same exact thing. I think the paid app has a good chance to get into a top list; and I'm concerned that a free-with in app purchase version will pull sales away from the pay version. But then again, maybe with in app purchase the free version could soar to the top of free as well....what to do. How do IAP purchases of a free app affect its ranking...does it even at all?
Scenario 1) Free Version and Pay Version
Pro: Can use an affiliate link during the Up-Convert
Scenario 2) Free Version with IAP and Pay Version
Pro: More Seamless Up-Convert
Con: May decrease ranking of Pay Version
Based on the above; it seems like that if you feel your app has a good chance to hit some top lists...it may actually be better to do scenario 1. Thoughts?
Yes I am leaning a bit more towards scenario 1 as well. It seems like it is definitely easier to get on to a top paid list rather than a top free list, and if you offer IAP upgrade then you are hurting your numbers in the paid app list...if you care about that.
Is there any way to link directly to the app store for a purchase from within the app (I'm NOT talking about in-app purchase), rather than just prompting the user to go and find the app himself?
Hmm great point about separation in reviews / ratings. I think it's well documented that paid apps in general get better ratings (the whole psychology of people wanting to justify their purchases). That's definitely a big point to consider.
Quote:
Originally Posted by foany
I'd say the 2 versions is the better option, so long as you include a link to the paid version in the app store. From the users point of view I don't see much difference between in app purchase and hitting a button that takes you to the app store version, they just want to accomplish a task, an extra click or two is not an issue in my opinion.
You also get 2 apps in the store versus 1. This gets you
- twice the number of keywords
- twice the exposure in the new releases lists
- a seperation of the poor app ratings likely to occur for the free app from the paid app rating
- the opportunity to get exposure for your app in more than one category at a time
I think the concern about how 'seamless' the upgrade process is for the user is a bit of a red herring, its not enough of a difference to put off a user in my opinion. And in choosing that option you lose the advantages above, which outweigh that one single advantage that may not even make a difference.
I will a bit skeptical about your 2nd point as it relates to the iphone market, however. Even if I plan to buy a paid app, I will probably try out the free version first to see if I like it. However, your point about simply adding a link to the store is valid.
Quote:
Originally Posted by falcon5280
A few real world points:
1. Any business that has free versions to upgrade products (the equivalent of in-app purchase) can tell you the conversion rate is less than 1%. I have tons of data from many clients to confirm this. So if you are looking at this as a money maker in a real sense then forget it. It is more like long-term, low-level advertising.
2. Another thing established businesses will tell you is the consumer who gets a free anything to upgrade later is NOT the same consumer as the one who pays for the product on the spot. So the premise that the free in-app purchase app is targeting the same group is not borne out by any consumer data in existence. So developers that have this discussion are having a useless conversation with themselves. The free downloaders and paid users are different consumers.
3. Unless your app is sticky (a game or something that they use a few times a week), in-app purchase will have same effect on your sales as online ads. Again, expect a conversion rate of less than 1% of the multiple session user. Which means way less than 0.5% conversion for total downloads because most free downloaders are not multiple session users.
4. Pricing is more important than number of downloads. Many of the apps in the store are priced wrong (i.e. way under-priced). It is obvious that the developers never studied or polled their target audience - thus they never effectively monetize that target. Also, it is obvious the established companies have done this research because their apps are priced much higher. Understanding what the consumer values and is wiling to pay for is more important than the functionality in the app. Apps should be priced based on the value to the consumer - just like any other consumer product.
6. Building an app and selling an app are two different things. One is developing software, and one is running a business. Asking a developer on a forum which really gets higher sales is like a business executive asking the developer for a consumer demographic breakout of their newest product. Anecdotal evidence and a couple successes here and there are useless and actually dangerous for making hard business decisions. It is the aggregate of consumer behavior across products that is the determinant here.
Case in point - Why is Steve Jobs successful? He knows how to develop AND he also knows how to run a business. And I can tell you, he never asks his standard developers for business advice - he hires them to develop and that's it.
The answer based on known consumer behavior: 1) a paid version, 2) and a free with a link to the paid one in the store, which should really be looked at as targeted, low-level, narrow advertising. The two apps are targeting two different consumer demograhics and that is the only way to attract both and get the most total sales possible. Unless you want to spend the time and energy with in-app purchase, there is no difference to the consumer who wants to buy your app. Adding a link to the paid one the store takes only 2 minutes. From a business perspective a much better ROI than dealing with in-app purchase.
1. Any business that has free versions to upgrade products (the equivalent of in-app purchase) can tell you the conversion rate is less than 1%. I have tons of data from many clients to confirm this. So if you are looking at this as a money maker in a real sense then forget it. It is more like long-term, low-level advertising.
..etc...
Interesting stuff. What do you think is 'the best thing to do' if you are simply interested in making money from the app store?
Mightbao Quote: I will a bit skeptical about your 2nd point as it relates to the iphone market, however. Even if I plan to buy a paid app, I will probably try out the free version first to see if I like it. However, your point about simply adding a link to the store is valid.
Response: Do not confuse ease-of-access and availability to test out with consumer buying behavior. The reasons a consumer ultimately buys something does not change if you give it to them free. The customer still has to value it the same way to buy it; given free or not. And all studies show that value is independent of ability to test. Why do you think mail-order is so huge and growing? People do not need to test to know what they value and want to purchase. Software developers made that up in the 90's and pay the price now having to give away their product for no practical reason.
But just look around and ask yourself if the free access and testing out stuff significantly changed the number of people who buy, why it is that when you go to the grocery store or the mall that there are not tons of vendors just handing free things to you all the time? Hey you are a captive audience, right next to their store or in their store etc. The reason is they know that more than 99% of people who take free do not buy. It is really that simple. And the people who actually buy are coming to their store anyways, so what is the point of giving it away? Advertising is the only answer, not necessarily for a significant bump in sales because that rarely happens.
And even your statement tells the story - let's see, there are over 100K free apps in the store and I bet you only download free apps that already interest you and you think you might value and as you say, plan to buy. You do not download apps at random; no one does. The other free ones might as well be invisible. In short, you only get the free ones you are inclined to consider buying in the first place because of some initial interest, so the free download is advertisement, not mind changing behavior. Your thought to possibly buy was set BEFORE you even downloaded the free one. And all studies show that if there was no free version and you wanted that app, you have the exact same motivation to buy and would buy it.
Again, if free to paid really worked why is it that only software developers believe that? No other viable industry dare function that way they know it is losing position.
Foany Quote: Interesting stuff. What do you think is 'the best thing to do' if you are simply interested in making money from the app store?
Response: KNOW YOUR TARGET AUDIENCE before you even develop and make the app. There is no such thing as the generic consumer of a product because in the end the consumer has to specifically choose your product, so you have to have a specific way to target that interest and sell it.
1. Have the an idea? Sketch it out well and hone the story boards before writing one line of code.
2. Decide what or who your target audience is?
3. Research a bit and design the colors, layout, etc. for that audience. And get rid of functionality and stuff that audience does not value and add things that target audience values. That may even mean making the app simpler and less jazzy.
4. Chose a name that talks to that target audience and that tells it exactly, without needing to think, what your app does.
5. Once launched, do a couple press releases that talk to that target audience. Do not talk about the functionality of the app, per say, but talk about the value of the app to that audience. Makes you do X quicker, increases Y, reduces Z etc.
6. Set a price that tells your target audience that the app has value and that it really does something for them (and by default that is not 99 cents).
7. Choose the proper keywords that speak to that audience in the language you know they use.
You do the above, and the target audience will find your app. Rule of thumb - consumers always find what they want, but you must be "find-able." Note: find-able does not mean visible. Your app may be visible on the front pages of the new releases, but it may not be find-able by the consumer if the name does not ring clear to them as to what the app does.
BTW - Do not confuse target audience with niche. For example, college students is a target audience, but huge and definitely not niche. Niche is college students with red hair.
In-App upgrade vs dual versions
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