As the title says, are in-app purchases as effective as I'd like to think they are?
As we're all fully aware, there are a lot of people around the internet who will do whatever they can to get a game or app that they shouldn't be able to.
Obviously developers have to make money when they choose to because otherwise they could be making a loss and not want to continue to develop any more. What is their best option to make money?
1) They could have a price on their app/game but once paid for, no more money will need to be spent in the app/game.
2) They could use the popular method of creating a free version and a paid version.
3) Have the app/game free of charge but have in-app purchases to make some money from it.
There are of course downsides to each of the options above but in my mind, the best option is 3) because it's not as easy to be able to get around the paying system. The only way around, that I can currently think of, would be by using cheat systems such as GameCih.
Whereas with the other 2 options, it's fairly easy to be able to bypass the required payment.
A perfect example of in-app purchases working is with Shadowgun Deadzone.
If the app had not been free, chances are I wouldn't have been interested in it because I couldn't test it before buying.
As the game is free, I tested the game out and because I thoroughly enjoy the game, I've since bought in game gold numerous times and will continue to do so.
I know that not everyone will have the same mentality as me but it proves, in my case, that in-app purchases work.
What are your thoughts on in-app purchases or what do you feel are the benefits of simply putting a price on the app/game?
From my experience, In App Billing is really good.
In my truck parking game, 3D Truck Parking, there are about 4 level packs for free and 1 that you have to buy with IAB. I must say that I got a lot of purchases daily!
IAB is better, you don't have to maintain two different versions, its easy to set up. Also users can't cancel an order they make through IAB & its linked to their accounts. On a normal paid app you can copy the apk and cancel the order, making it easy to steal.
When i started to work with android app i did two version free and paid. Now i'm sure that it's wrong. One free application with in-app payments is the best choise.
Question
Hi Guys!
I'm writing my academic thesis about the market of the app stores and I would like to interview some developers about the monetization, revenue models etc... If you could answer some questions please contact me at [email protected] It would be a great help! Thank you very much!
Freemium and IAB
Hi,
I believe Freemium is a good model for many apps, specially games.
And IAB is the best option to support the Freemium model, to my experience.
I tried other options such as free app with paid apk acting as an unlock key, which is a quite popular model on the Play Store, but not as powerful and flexible as IAB.
So I would really recommend IAB, specially latest version 3 which is easier to use.
Make sure you use the helper class provided by Google, but be careful, there are a few bugs in it...Look for fixes in stackoverflow !
Good luck!
Eric
I can certainly say I wish I had implemented in app purchasing instead of a free and paid version of the same app. As mentioned before, the ease of not having to maintain two versions, as well as the advantage of free app entry is a big plus. Definitely the way to go if the app is designed in a way that makes sense for that style.
In-apps are gr8, the only problem is that the app must be developed rly good (if not excelent i.e. nice in-game economy) to encurage ppl to use them. Freemium FTW!
I would love to move to IAB but I already have a paid/free app combo in the store. That would just be another app to maintain
Sent from my Nexus 4 using xda app-developers app
Just to say, Google Play bans ALL apps with in-app purchase here.
Besides, I can't but any apps in GP.
What a shame, Google.
F2P is here to stay
When you look at the top grossing list on both Google Play and iTunes you will see that, in fact, free-to-play titles make more money than paid titles. Of course, market for premium titles will still exist, especially for high-quality utility apps but in games F2P is dominating and, I think, this trend will continue.
As you experienced yourself, this model is super-convenient for players, you can test a game and, if interested, pay for additional items, etc. The only one thing which is tricky is keeping balance, ie. not making a game pay-to-win.
Last but not least, it's so much more exciting from a dev perspective to have 1 million of players enjoying your title than 10k Making money of them is yet another matter.
As a user I still like the idea of purchasing an app once and using it for as long as I like, but maybe I'm getting old...
I don't like the pay2play model, for example in real racing 3 you can only race a couple of rounds and then your car needs maintenance. This maintenance takes just long enough to hate it, but with in game coins you can make it happen instantly, which you can buy with real money.
The same goes for buying new cars: you don't make a lot of money racing so buying a new car takes ages (if you don't pay for quick maintenance that is) but you can again buy credits with real money to make it faster.
This probably makes for a continious money flow for the developers, but it annoys me; I would much rather just pay once and then play forever, and after that maybe pay some more for some dlc or something, but i don't like paying just to keep playing...
I don't mind what model developer choose. But I'm really disappointed by the lack of proper filters in Google Play. Free and Payed is not enough! It's cheating that demo or IAB applications are listed together with really free applications. There should be at least third category, which would gather demo, IAB etc apps - apps that aren't fully free. I would also love to have "open source" category.
Google's IAB is simple to implement in the app/game, but it has a huge disadvantage: if no server verification was implemented, then it is very easy to automatically hack IAB, there are many hacking tools available. Server verification is not an easy to implement. At least, a dedicated server is needed + experience in server programming.
IAP is good, but takes work
I have deployed apps with both IAP as well as the free/paid model.
IAP allows a single app with combined ratings and DL count (and free apps get more casual attention)
IAP takes more work - code, testing, and setup in portal
Paid apps on different app stores are easy. IAP solutions from each app store are not compatible with each other.
I plan to use IAP as the primary model on my next app (as well as ads), with no paid version. We'll see how that goes. I decided to try subscriptions, which is a tougher sell.
For a first app, however, the free/paid model may be much easier for many devs. Just hit a switch to show the no-ad layout (or whatever other features the paid version has) and dump the separate apk up on Google Play.
BTW I blog on ad networks and Android app stores at http://www.projectjourneyman.com. I created a report with charts showing my experience with a paid app as well as a free app w/IAP on Amazon and Google Play (plus paid app on Nook). Getting it signs you up to my email newsletter, but you can unsubscribe right away if you want
As a user I agree with an earlier poster that a once off fee for a full featured product is the most satisfying.
The biggest problem is IAP is that it needs to be very well implemented and generally this is not the case. More often than not it becomes a pay to win scenario which is just silly.
Too many games entice you to make a payment and then you feel you've been robbed as there was little value in the purchase.
I understand it is a good business model to get money from your hard work as a developer but personally I find it almost unethical. It becomes a little like gambling where games are addictive and require you to keep feeding in money to continue playing. This is not dissimilar to the pokie machines (aka slot machines) which are a very political issue here in Australia. I can imagine this pricing model in mobile games also becoming a political issue for similar reason if it is not self regulated by developers.
Also, hacking IAP apps is often pretty easy to do to avoid payment so this model is not immune to piracy.
Developers who depend on freemium might find their market drying up when their customers finally realize it's really a scam.
Im sorry for putting it this way but it's more honest to say so.
Freemiums are making money right now because of new smartphone owners who dont know any better.
But just like kids growing up, they will realize its better to buy outright a game than to keep throwing money into a game to get in game items just to play it well. It becomes pretty expensive later on.
The gold rush isnt going to last.
Here's my 2p's worth as a consumer, not a developer. The Freemium model is OK if its implemented correctly. Hill Climb Racing and Jetpack Joyride are two examples of what I believe to be decent titles. They're both so well made I have ended up spending real money on them both, not because I had to in order to progress or complete them (I'm looking at you Glu Games) but because I enjoyed the titles so much I wanted to play faster and support the developers. As for Real Racing 3, well I've got all the cars fully upgraded and I've never given EA a f***ing penny, nor will I.
There are limits.
I personally love the free / paid app model and almost all the tools and system apps I now use or have used were free versions I found invaluable and subsequently paid for. Hell, I've even bought 'Donate' versions that are exactly the same (Orux Maps) purely because the apps are that good.
Ultimately if people want to steal your work they'll find a way. Theft isn't going anywhere. But neither is the desire to reward decent work that is genuinely good value. I guess the way to get paid is to strive to create something of value.
bong4316 said:
Developers who depend on freemium might find their market drying up when their customers finally realize it's really a scam.
Im sorry for putting it this way but it's more honest to say so.
Freemiums are making money right now because of new smartphone owners who dont know any better.
But just like kids growing up, they will realize its better to buy outright a game than to keep throwing money into a game to get in game items just to play it well. It becomes pretty expensive later on.
The gold rush isnt going to last.
Click to expand...
Click to collapse
I do not agree, not all games use aggressive freemium model to milk the money from the users. In-app purchases are often used to buy additional unnecessary content (for example, extra levels) or to remove ads (because all free games are supported by ads). So the game just gives users a choice: either live with ads, or convert game into ads-free version.
nishyt said:
IAB is better, you don't have to maintain two different versions, its easy to set up. Also users can't cancel an order they make through IAB & its linked to their accounts. On a normal paid app you can copy the apk and cancel the order, making it easy to steal.
Click to expand...
Click to collapse
totally agree! IAP is much better!
I have a free app, and am planning to release a paid version with better/more features. Neither has ads.
What have others seen in terms of percent of users that buy the paid version versus the free version?
I ask because I'm curious what potential, albeit small, of profit my app has.
P.S. I know it can vary widely based on the demand for the features and the app, etc... but curious of what numbers others have seen.
I have 12% of users are switching to the paid version. but I have a business application.
Depends.
From my experience with SaaS apps running the freemium business model, conversion is somewhere between 2 and 4 percent. For other apps, I've heard others mentioning 10 percent. And 25 percent is considered somewhat of a major success. No matter what conversion rate you aim for, make sure your in-app purchases provide real value to the user (measure that by performing tests with different packages, for example). Adding proper gamification is always a bonus.
It varies greatly with different apps, and different app stores. I also have apps with a paid version and a free lite version (without ads). The conversion varies from 2% to 23%. It's much higher on Amazon appstore than on Google Play.
Good luck!
Z6PO said:
It varies greatly with different apps, and different app stores. I also have apps with a paid version and a free lite version (without ads). The conversion varies from 2% to 23%. It's much higher on Amazon appstore than on Google Play.
Good luck!
Click to expand...
Click to collapse
Can I ask which application got a 23% conversion rate?
Sent from my SM-N9005 using XDA Free mobile app
2%-10% for me depending of the platform. 2% on Android and 10% on iPhone. It's an app in lifestyle category.
For my calculator for 10% of users bought the paid version of the free, live wallpaper for 3%.
ivan-1982 said:
For my calculator for 10% of users bought the paid version of the free, live wallpaper for 3%.
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Sent from my SGH-T599N using XDA Free mobile app
Mobile games are a huge hit amongst people from all ages. The most common problem faced by mobile game app developers is that there is very little provision to make profit and this is the reason why most of the newbie end up running out of the competition. Making a strong provision for continuous cash flow ensures long term stability and sustenance.
Developing a game in itself is an arduous task; it requires imagination, planning and execution. A normal sort of an idea will never let you develop a permanent or long term user base; you need to cull out something unique and captivating. Selecting the correct OS, getting hold of an interesting design and UI and bringing in several other factors help you create a successful gaming app. Now the ultimate question which pops out here is that “how are you going to make a profit out of your product?”
Well it’s a fact that none of us work just for the sake of working; we all expect a reward in the form of profit. Monetization becomes the last but most important part of developing a game based application. Let us take you through some of the best ideas to monetize your app and get in a good turnover.
Made for the user: The first question you ask yourself when developing a game is about the target audience. Basically what you are developing is meant for your end users and not for you. The apt genre and target audience go hand in hand and then only you can ensure a long term user base. A popular game will automatically bring a larger crowd and hence create opportunities to earn.
Surprise your users: Who doesn’t love surprises? If you are continuously offering something novel to your users with regular updates then you can assure yourself with a strong user base. People will keep on coming back and take keen interest in getting the app updated because of the surprise element.
Bonus on referrals: Well this has become quite a bit common and effective too. You can put in some incentive for your users so that they refer your game app to their friends and family. This will again bring a lot of genuine installs and create a large user base pretty much quickly.
Effectiveness of the Freemium Model: Freemium has become quite a common internet term these days, it basically means providing basic things for free and the premium ones can be used at a price. The first three points have already given you an idea to create a large user base, now offering a freemium model will let you have monetary conversions. A good game will pull in some of the fans to purchase the premium offerings.
In-app purchases are a must: Since we are talking about monetization, the word ‘purchase’ holds a lot of importance. You must provide for in-app purchases to ensure that at least some people from your user base are purchasing something or the other. It might be a third party app or product, but, in this way you can build up on a good section of commission based earnings.
Discounts! Somebody who has always wanted to purchase something but couldn’t do it because of a higher price would definitely understand the importance of discounts. Offering a discount on the most sought after products in your range will keep on encouraging a lot many users to spend money.
Removal of limitations: Your game is an absolute hit, people love it but then there are some annoying hindrances like advertisements, zero lives, turns or even energy. Now you can bank on this opportunity and get such limitations removed for a paltry sum of money. Most of the users would spend.
Social Gaming: It is a human habit, when we are with our social groups we tend to spend more. Now if your game app gives an opportunity to function socially then people can be lured to spend more. If their friends are scoring high, then they will definitely want to beat them at any cost! Sounds clever?!
Merchandises: Lastly, once a game is quite famous, users do want to get hold of merchandises and accessories from the same game. Angry birds is a classic example, people buy mugs, apparels, footwear and other accessories just for the sake of love for their favorite game.
These are some of the most important methods of channelizing funds to your bank accounts. Gaming is a great sector to invest in, but the shortage of funds tends to shallow down the foundation of growth. Some of these strategies definitely will help monetizing funds.
If you believe that you have developed a good game then you should contact me now to start promoting your app around the word!
Hey Guys,
We are small startup based on mobile games development, we would like to start monetizing via one of provided monetization platforms and their networks.
Some of our games will include rewarded video.
We are planning to get tones of views so important point for us is fill rate and completions.
Does their some big differences between supersonic and fyber? Which one should we use ?
Hi,
I work for ironSource Mobile, a leading advertising platform. We are experts at monetizing non-paying users.
Current publishers using our products include EA Sports, Zynga, Nordeus, GREE, LOVOO, Fingersoft, among other.
Our solutions generate substantial revenue for publishers by allowing users to earn your virtual currency in exchange for watching videos and completing targeted advertising offers from our top tier global advertisers.
I would love to learn more about your monetization strategy and talk further more about working together, as I'm confident we can help you increase your revenue significantly.
Feel free to reach out at [email protected]
albertos001 said:
Hey Guys,
We are small startup based on mobile games development, we would like to start monetizing via one of provided monetization platforms and their networks.
Some of our games will include rewarded video.
We are planning to get tones of views so important point for us is fill rate and completions.
Does their some big differences between supersonic and fyber? Which one should we use ?
Click to expand...
Click to collapse
Full Disclosure, I work with Appodeal, a programmatic mediation tool for developers.
Let me just say you need to broaden your considerations. Overall, Fyber, Ironsource (and MoPub), while popular, offer vastly similar technologies, relying on predictive algorithms based on historical data to ensure performance is optimized, and require ADDITIONAL integrations to support mediated partners.
With Appodeal, we do things a bit differently. Rather than relying on historical (an potentially irrelevant) data, our solution forces advertisers to compete, in real time, in bidding war for your ad request.
Also, everything is available under a single SDK/Account/Platform/Payment, so you're not managing separate adapters and accounts to actually mediate, as is the case with our competitors.
Overall, Appodeal technology can produce a 15% increase in revenues over other mediation providers, and we can save you more time with simpler integration and automated ad serving.
Feel free to hit me up via email, [email protected], or via Skype, christopher_jam, if you would like to know more. Happy to do provide a demo of the platform. Would be great to have the chance to check out some of your apps and recommend some user friendly ad strategies.
No matter what, best of luck!
Cheers,
Chris