Freemium has become the standard business model in mobile apps

Chart-of-the-day-this-is-how-most-app-makers-are-making-money

Agreed, the app market is saturated with over 600,000+ apps – you need a strategy that first shows value in your product, then provides customers with additional content, features… powerups (Smurffberries anyone?). Customers are willing to pay, but not upfront.

Via Business Insider

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According to a BII analysis of App Store data, 93 percent of the top 100 grossing iPhone apps use in-app commerce. Of those 100 grossing apps, two-thirds are free.

As most the top grossing apps are games, in-app commerce is most commonly used to sell in-game currency. However, companies like Pandora and eHarmony are using in-app purchasing to sell subscriptions, while Marvel is using it to sell access to comics.

iphone app design, iphone development, mcommerce, mobile

Mark Cracknell

Director + Creative Lead at Binary Studio. Mark has 18 years experience within the digital and advertising industry. His passion (and talent) for design across digital platforms has made his work internationally awarded on campaigns for Volkswagen, Philips, McDonald’s and Johnson & Johnson. Recent mobile projects have been featured by Apple (Worldwide) and reached the coveted ‘Number 1′ position within the Australian App Store on multiple occasions. He is a member of the AIMIA (Australian Interactive Media Industry Association) and an all round nice guy.