VIDAPP BLOG

Are 'pay upfront' apps or 'freemium' apps (free apps with in-app purchases) the best approach?
Dave Hancock wrote this on May 15th 2015
We can release either type of app for you, but our advice is that in general 'freemium' apps are more successful.

First and foremost, our advice is based on figures from the Apple and Android app stores. 92% of app store revenue comes from in-app purchases, which indicates that 'freemium' apps are significantly more successful than 'pay upfront' apps.

Our advice is also based on design discussions with customers. We've found that users really appreciate being able to install 'freemium' apps, so that they can 'try before they buy'. Users can make sure the app works on their device, read more about the videos included in the app and watch free previews, before finally making a purchase. 'Pay upfront' apps on the other hand require payment in full, before the app has even been installed, which is a tough ask these days with so much free content available.

Finally, the success of our app 'Muay Thai - Training and Techniques' in the app store provides a good case study. Our app is a 'freemium' app and now the top ranked 'Muay Thai' app in the Apple and Android app stores, based on both installs and revenue. The app was only launched 6 months ago, facing stiff competition from apps that have been around for significantly longer. The main competition came from an app which included the same world champions presenting fairly similar content. The main difference between our app and theirs was the structure - ours was 'freemium' and theirs is 'pay upfront'. Our success compared to their app provides a great illustration of the power of 'freemium' apps!

So, again we can launch apps however you'd like to, but if you ask for our advice it would be to launch 'freemium' apps!