On 02/16/2012 12:22 PM, Tim Mensch wrote:
On 2/16/2012 11:47 AM, Nathan wrote:
You'll notice the top is dominated by freemium app, but you can install or look further to find out how much they charge for accessories. I suspect lot of them make big money in small increments.

I have spent a lot of time researching freemium apps, and while it's important to have low-end ($1) things to buy, it's equally (or possibly MORE) important to have expensive things to buy.

I bet you'll find every one of those top grossing games has a $99 add-on. And in a lot of cases it's the most popular purchase, or at least in the top three.

Despite that $0.85/user number, most users never buy anything. It's the "whales" (users who spend a LOT) that bring up the average. There are reports of some games inspiring users to spend THOUSANDS of dollars. I'm not making this up. The highest number I've heard was around $30,000 spent by one user on one game.

You could pay to have a complete game developed (albeit a small one) for that amount. You can also imagine it doesn't take too many "whales" to raise the average spent per user.

Tim


Since I do contract game work on other platforms and some coming on Android I heard many complaints from existing game publishers about figuring out what to do with a 99 cent market. That's why "casual games" have become popular there. Most are more idea than code and if you have some nice graphics will entice people to buy.

For non game niche apps I always found it was best to tip-toe into the market. I have people who email me and say they are will to pay quite a bit more for more features, i.e. $30 to $50. I want to see more interest but that is building in the field as more people get Android devices. And I still have people wanting me to do iPhone and Windows Mobile. I had a Windows Mobile product but I could not guarantee that it would continue to work with newer phones and in fact it doesn't completely. Another solution to adding features was a smorgasbord approach where users could chose what addons they wanted to work with the base app. And I still have a Windows app selling at $50 that is way overdue for a 2.0 upgrade.

As for pricing this is a very good article on pricing software though it doesn't discuss pricing in a recession when inflation takes off (though it sort does indirectly):
http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html

There are, however, a number of articles to be found on the Internet about strategies during a recession and when inflation sets in.

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