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Old 03-06-2010, 11:14 AM   #1 (permalink)
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Default Lite vs In-App Purchase

Hi,

Which one of the two approaches, lite or in-app purchase, is more effective in driving paid download?

Lite gives you the advantage of targeting a different set of keywords so potentially you get more visibility, but the downside is that you make two separate apps, which means extra work. We have not tried in-app purchase so I am interested in hearing the pros and cons of using in-app purchase to drive paid download.
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Old 03-06-2010, 02:46 PM   #2 (permalink)
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Originally Posted by jwt8070 View Post
Hi,

Which one of the two approaches, lite or in-app purchase, is more effective in driving paid download?

Lite gives you the advantage of targeting a different set of keywords so potentially you get more visibility, but the downside is that you make two separate apps, which means extra work. We have not tried in-app purchase so I am interested in hearing the pros and cons of using in-app purchase to drive paid download.
in-app purchase will likely be just as much extra work as having two separate versions.
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Old 03-06-2010, 02:57 PM   #3 (permalink)
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Originally Posted by jwt8070 View Post
Hi,

Which one of the two approaches, lite or in-app purchase, is more effective in driving paid download?

Lite gives you the advantage of targeting a different set of keywords so potentially you get more visibility, but the downside is that you make two separate apps, which means extra work. We have not tried in-app purchase so I am interested in hearing the pros and cons of using in-app purchase to drive paid download.
If you have customers now ask them. One company I know asked their customers (300+ of them), and they gave in-app purchase a thumbs down by like 80-20%. Reason they said was mainly "I want the app that I bought to be the app that I bought and do not want to buy other things to get the app that I thought I bought." Very enlightening.

In short, the consumer wants to shop once and forget it. At least theirs does. I really think like with any product it depends on the initial price point and how much time that cohort spends on the device. Busy people do not want to spend time buying and configuring an app. They would rather spend 2X to 3X as much and have the app complete. In other words - they want time-saving convenience because their time is money.
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Old 03-06-2010, 04:59 PM   #4 (permalink)
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Originally Posted by jwt8070 View Post
Hi,

Which one of the two approaches, lite or in-app purchase, is more effective in driving paid download?

Lite gives you the advantage of targeting a different set of keywords so potentially you get more visibility, but the downside is that you make two separate apps, which means extra work. We have not tried in-app purchase so I am interested in hearing the pros and cons of using in-app purchase to drive paid download.
I would recommend doing both. Have two separate apps (a normal version and a pro version, or whatever you want to call them), then let the users upgrade the normal version to the pro version with an in-app purchase if they want. I actually think this would make a lot more people upgrade and pay for the pro version, especially if they use the app frequently. It also gives your users options; most people like that.
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Old 03-08-2010, 02:25 AM   #5 (permalink)
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Busy people do not want to spend time buying and configuring an app.
This is for a free (LITE) version of the app. So if the customer really wanted to save time then in app purchase would be best. Instead of going to the app store finding the full version and downloading they would just quickly upgrade to the full version in the LITE app they are already using.......
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Old 03-08-2010, 02:30 AM   #6 (permalink)
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This is for a free (LITE) version of the app. So if the customer really wanted to save time then in app purchase would be best. Instead of going to the app store finding the full version and downloading they would just quickly upgrade to the full version in the LITE app they are already using.......
Got it! Makes sense for LITE Version.
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Old 03-08-2010, 02:39 AM   #7 (permalink)
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This is for a free (LITE) version of the app. So if the customer really wanted to save time then in app purchase would be best. Instead of going to the app store finding the full version and downloading they would just quickly upgrade to the full version in the LITE app they are already using.......
Having an in-app purchase option implies you have a way to trigger the in-app purchase (e.g., a button or something similar). This similarly could link out to the app store for purchase of the full version.

In-app reduces friction, but you can get an extra 5% off the purchase price with a full version vs. in-app. Also, if you have enough volume, the full version can rank in the charts and you can get organic purchases that way.
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Old 03-08-2010, 02:45 AM   #8 (permalink)
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Having an in-app purchase option implies you have a way to trigger the in-app purchase (e.g., a button or something similar). This similarly could link out to the app store for purchase of the full version.

In-app reduces friction, but you can get an extra 5% off the purchase price with a full version vs. in-app. Also, if you have enough volume, the full version can rank in the charts and you can get organic purchases that way.
From a business point of view, this makes even more sense. Plus it avoids having to build and maintain the in-app machinery. Sounds like better revenue generator in the long-term.
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Old 03-08-2010, 03:21 AM   #9 (permalink)
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It also separates your lite reviews from full reviews.... As we all know free apps get pretty horrible reviews

looks like a separate lite and full version is probably the way to go.
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Old 03-08-2010, 11:18 AM   #10 (permalink)
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It also separates your lite reviews from full reviews.... As we all know free apps get pretty horrible reviews

looks like a separate lite and full version is probably the way to go.
I'm not so sure... your right about the reviews. But I think the up-conversion rate would be better for In-App Purchase. The way I have it implemented in the app I'm working on the user can upgrade their app and use the new functionality in about 2 seconds without any time wasted.... a lot less annoying than hitting a button, opening up the app store; clicking buy twice, downloading etc.... it also gives the user a chance to read the description of the pay version again and decide he doesn't want the upgrade after all.
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Old 03-08-2010, 03:08 PM   #11 (permalink)
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I'm not so sure... your right about the reviews. But I think the up-conversion rate would be better for In-App Purchase. The way I have it implemented in the app I'm working on the user can upgrade their app and use the new functionality in about 2 seconds without any time wasted.... a lot less annoying than hitting a button, opening up the app store; clicking buy twice, downloading etc.... it also gives the user a chance to read the description of the pay version again and decide he doesn't want the upgrade after all.
Agreed. The friction reduction is worth it UNLESS you can push your full app up the rankings enough.
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Old 03-18-2010, 01:46 PM   #12 (permalink)
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I prefer the lite and paid vs in app purchasing. There are people that get up set when they think they got a free app and find out the main features you have to pay in the app for it vs when they know they have a "lite" version.

I don't have a problem with making some features in app purchase but if the key features are in app then that irritates me some.


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Originally Posted by jwt8070 View Post
Hi,

Which one of the two approaches, lite or in-app purchase, is more effective in driving paid download?

Lite gives you the advantage of targeting a different set of keywords so potentially you get more visibility, but the downside is that you make two separate apps, which means extra work. We have not tried in-app purchase so I am interested in hearing the pros and cons of using in-app purchase to drive paid download.
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Old 04-10-2010, 08:20 PM   #13 (permalink)
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I thought about both paths (lite or in-app) when I was writing Goal Meter. I decided on offering a lite version for these reasons:

1. I would have two spots on the store instead of one, and
2. People looking for free apps and paid apps may be two different crowds, and it would not be obvious that the only way to get the paid version is by first getting the free version.

It seems more elegant to offer free apps and then do an in-app purchase to unlock all the features, but I don't know if it's the best marketing strategy. I figured I would offer two versions, paid and free, and go after both groups, while trying to convince the free users to upgrade. My assumptions could be wrong -- I've only been at this for a month.
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Old 04-11-2010, 12:19 PM   #14 (permalink)
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I have had a "premium" version of my app in the store for awhile, averaging about 10 sales a day.

I released a "Freemium" version in an attempt to increase sales.

I ended up with several hundred "Freemium" downloads, and "0" upgrades, and the premium version went from 10 a day to 1.

so... i took the freemium down.

my advice now is to not bother with a free or in-app purchase at all (Unless its an app that you can get thousands of downloads, then maybe the numbers would be better).

Just put paid versions in.
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Old 04-12-2010, 01:18 PM   #15 (permalink)
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I have had a "premium" version of my app in the store for awhile, averaging about 10 sales a day.

I released a "Freemium" version in an attempt to increase sales.

I ended up with several hundred "Freemium" downloads, and "0" upgrades, and the premium version went from 10 a day to 1.

so... i took the freemium down.

my advice now is to not bother with a free or in-app purchase at all (Unless its an app that you can get thousands of downloads, then maybe the numbers would be better).

Just put paid versions in.

Has the premium sales gone back to where it was before (10 downloads/day) after you pulled the free version?
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Old 04-13-2010, 08:02 PM   #16 (permalink)
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Has the premium sales gone back to where it was before (10 downloads/day) after you pulled the free version?
yes, within 2-3 days it went back to normal
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Old 05-21-2010, 04:26 AM   #17 (permalink)
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I suppose it makes sense to have lite app (with unlockable content via IAP) and full paid app. I'm saying this basing on own experience of selling apps on the AppStore. If interested you may want to look at my post in our company blog about IAP vs paid app.

In App Purchase vs. Paid App | bees4honey blog

In two words - having lite version with IAP and paid version will increase a total revenue in comparison with having only lite with IAP or lite+paid.
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Old 06-21-2010, 01:00 PM   #18 (permalink)
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This thread has been around unlocking functionality. What would people suggest if the idea was to limit use, not functionality: say, play a game 25 times, then pay to have unlimited use? I was thinking in-app, but as I write this, and based on what I've read in this thread, maybe just skip all that and just have the unlimited use paid version ($.99). Advice?

Thanks!
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Old 06-21-2010, 01:56 PM   #19 (permalink)
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If I recall correctly Apple disallows "limited play time" functionality.
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Old 06-22-2010, 12:45 PM   #20 (permalink)
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If I recall correctly Apple disallows "limited play time" functionality.
Oh, OK. Settles that for me!

Thanks,

Al
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