Why Your App Needs In-App Purchases

Published on March 28, 2013

Whether you choose to charge up front for your app or give it away for free, In-App Purchases (IAP) are a proven way to boost your bottom line. A report today from app store analytics firm Distimo shows exactly just how much money you could be leaving on the table without IAPs:

"In-app purchases generated a record 76% of all revenue in the Apple App Store for iPhone in the U.S. in February 2013. At least 90% of all revenue was generated by in-app purchases in the Asian markets, which include Hong Kong, Japan, China and South Korea."

IAP revenue over time

In case that's not clear: 76% of all the money flowing through the Apple App Store comes from In-App Purchases.

Of course, you need to make sure that your app jives well with IAPs. Just because the technology is available doesn't mean you should force it into your app. In some cases, like with children's apps, using IAPs can make your app seem more cheap and shady (and less like a great solution for your customer).

With that in mind, if you want to give customers the ability to "try before they buy" or the opportunity to unlock specialized functionality, In-App Purchases are certainly the way to go.

The Jed Mahonis Group knows how to incorporate In-App Purchases into your app. If you're ready to build the next big thing, get in touch with us today!

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