September 30, 2009
At our iPhone Play event, someone asked a panel of top developers an interesting question:
“If I were to download your app right now, would you rather I get the free version or the pro [paid] version? … Which generates more money per user?”
James Anthony from Inedible Software answers: “The pro will in the next 10 minutes. We’d like to think that if you download free, you’re going to use it and over time we’ll actually probably make more money off the free one.”
More quotes from the clip:
Mick Johnson from JamCode: “It’s really a market segmentation problem. If you’re someone who’s going to contribute a lot of data or are going to click on a lot of ads then I want you to get the free version. If you’re someone who’s going to use the app once and then not use it again, I want you to get the paid version. The trick for me as a developer is to setup my versions so that the different versions appeal to the right people.
Eddie Marks from Inedible Software: “I’ve never heard of anyone who’s done less than 100 x on the free version… sometimes you see 1000 x on the free… You look at the top 10, top 100 applications, there are a lot of freemium apps”
Watch the clip.
About the Developers:
James Anthony and Eddie Marks are cofounders of Inedible Software. Their apps are Shotgun Free, Shotgun Pro, Air Guitar, and POW.
Mick Johnson is cofounder of JamCode. Their apps are GasBag, GasBag Pro, and myATM.
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