The app economy is growing at a pretty tremendous rate and one of the major innovations in the space is in-app purchasing. With in-app purchasing, users are downloading the apps for free, and purchasing upgrades or new features to the app. There’s a lot of cool stuff you can do with in-app purchasing like buy new levels in a game, buy virtual currencies or credits, or upgrade the app in a free-trial sense.
With in-app purchasing, developers will see far more downloads because there is no barrier to entry. With a free app, users can download the app and see whether it’s worth purchasing. Since there are far more opportunities to monetize the app, and users can choose what they want to pay for rather than put the money upfront, there will be more money spent and more satisfied users. We’re seeing a lot of growth with in-app purchases and my prediction is that this strategy is so successful, we’ll soon see the end of paid apps entirely.
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