7
Creating Free and Freemium Apps
WHAT'S IN THIS CHAPTER?
- Learning App Store revenue terminology
- Understanding the business reasons behind choosing a particular type of revenue model
- Further considering risks and rewards of particular revenue models
- Learning what ingredients to bake into a free, lite, and freemium app to maximize its potential for success
In the next two chapters, you learn how to build the various types of apps from a business perspective. This chapter looks at free and “freemium” apps, which, for most developers, will be the quickest path to the most revenue. Even if you decide on a particular revenue model and price for your app, you should thoroughly read this chapter and Chapter 8 because a portion of the content can apply to both free and paid apps.
Let's start by breaking down the App Store into two categories: anything free and anything paid. This chapter deals with anything free, which can be split up into three subcategories: purely free, “lite,” and “freemium.”
Chapter 8 deals with the paid apps, which includes non-premium apps (lower cost, and sometimes used as a synonym for “paid” in general), and premium apps (higher cost subset of paid apps with particular expectations). Any time metrics are used to discuss “paid” apps, they're generally referring to the entire gamut of paid apps (including premium).
With this understanding, let's take a look at some of the popular terms that are being thrown around as viable business strategies, or components ...
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