The word freemium comes from two words “free” and “premium”.
Free- usually signifies the initial state of an app.
Premium- means that some money is required to unlock additional features.
An app can have a free version and can have a premium version available separately or the free app might be upgradeable to a premium one through in-app purchase.
Currently “freemium” games are the hottest thing since sliced bread, but you can’t just follow the trend—it’s important to carefully consider which business model makes sense, based on the attributes of each game. There are a wide variety of strategies, including ad supported, premium, or hybrid models.
How do you monetize your game through the freemium business model?
As mentioned before the most important tool for freemium app developers is in-app purchase (IAP). IAP allows app developers to sell packs of content or consumable items at specific price points. When using IAP, it is important to test often and adjust pricing as needed to maximize revenue and end-user engagement.
If you are just getting started with IAP, look at the top grossing apps that utilize this method to get a basic overview of how IAP should be implemented. (Don’t copy their app, obviously, but learn from their business model).
As freemium has become the most popular business model, developers and publishers are creating variations of the model for different types of games with fantastic results. Casual puzzle games can use the freemium model, if implemented and optimized correctly. For example, Bejeweled Blitz, one of the biggest brands in casual gaming, has maintained a top 50 grossing rank for the last six months.
Although this model is agile it doesn’t fit any type of app. So if you still haven’t read our article “knowing your app” now is the time. It will help you identify the best parts of your app and it will enable you to make that decision of going freemium.
Already made that decision? Check our blog regularly and learn what to do next!