Mobile Application Pricing Models: In-application micropayments

cswambar — Thu, 02 Jul 2009 00:12:00 GMT

In-application micropayments can be a great way to monetize your creation when used properly

Re: Mobile Application Pricing Models: In-application micropayments

Barry Engel — Wed, 08 Jul 2009 01:26:36 GMT

I'm leaning towards the subscription model as the application requires data that gets outdated over time. A monthly (ideally) subscription would guarantee the data feed. Perhaps buy a year in advance at a discount. Automatic billing per month...similar to the KIndle newspaper or magazine subnscriptions.

Thoughts?

Re: Mobile Application Pricing Models: In-application micropayments

cswambar — Mon, 13 Jul 2009 15:46:05 GMT

Hi Barry -

Subscriptions are a time tested and proven method of helping monetize mobile applications. This model has been very successful in areas such as music and games, but has faced challenges in other areas, most notably in mobile TV for example. For the developer, subscriptions can provide an ongoing revenue stream and the chance to build a lasting relationship with the consumer rather than just a one time sale. For the consumer, subscriptions give access to several apps or services for a period of time, often times for the same or even lower price than a single downloadable app. When using the subscription model (or any other for that matter), you will want to first make sure you benchmark competitive offerings across multiple platforms, paying close attention to what is being offered, the quality of the offerings and of course, the price. You will also want to look at other products and services that while not necessarily direct competitors of your particular solution, could potentially be used by consumers to deliver a similar experience. As part of this effort, pay close attention to the “freeware” that is available within this segment. More and more often I come across people that like what a paid version of an application or service can do for them but feel that the free version is “good enough” and are willing to forego some of the functionality they desire in exchange for saving money.

Also, while I cannot tell you exactly where to price the subscription for your app, I would suggest you consider offering a free, trial version of your application as well, perhaps subsidized in part by ads, to give consumers the opportunity to try out your solution first hand before buying, to show the value your service provides, how much more useful the full version will be and why it is in their best interest to sign up for a subscription.

Thanks for the comment!

Re: Mobile Application Pricing Models: In-application micropayments

Darius — Wed, 05 Aug 2009 04:40:52 GMT

Darius from WaveSecure team here.

We have tried all the models.

True Subcription (operator postpaid)

Subscription (pay for 1 month / 3 month, and than go to the app and pay again once expired)

One time on device

One time at Point of Sale

Freemium

It seems to us the pricing model depends a lot on the context (culture, experience, etc.) - there is no one answer.

True subscription works for us for some postpaid operator deployments, and one time payment works well in Europe. Smaller renewals works well in Indonesia, Philliphines, india. Anything that is troublesome for user doesnt work anywhere.

p.s. WaveSecure coming to Android soon!