In-App Purchases Not A Slam-Dunk For Riches, Says Developer

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Google just introduced in-app purchases to the Android Market, after the function has proved highly lucrative for some developers on Apple’s App Store. At least, we’ve heard it’s a great way for developers to increase their cash flow, letting them offer a razor-and-the-blade retail model with a low or free upfront cost and delayed payments over time to add new functionality to the app. However, some recent figures from a developer suggest the in-app purchase picture may not be quite as rosy as has been painted.

John Casasanta of Tap Tap Tap posted some statistics for the popular Camera+ iOS app. Granted, we shouldn’t draw too sweeping conclusions from looking at just one developer, but Camera+ is pretty popular app, so its numbers might be indicative of the kind of sales that other developers are striving for.

Casasanta says that only about 5% of those users who buy the app also opt to make an in-app purchase for an expansion pack. While that still accounts for tens of thousands a month, it doesn’t make the case that these transactions are something that can be relied on for contributing to a major fraction of sales. We imagine that things would be even less lucrative with a free app, since in the Camera+ case, its users have already shown their willingness to pay when they bought the app in the first place.

Sure, a lot of the success or failure of in-app purchases is going to rely on just what sort of added value is offered, how heavily the add-ons are promoted from within the app, and how the developer chooses to price them, but they’re a far cry from a magic bullet for app-sale success.

Source: Tap Tap Tap

Via: BGR

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!