I’m working on a mobile app that could work out well either way with in-app purchases or with a subscription model.
I’m looking for data on revenue from subscriptions vs in-app purchases, but having trouble finding anything outside of mobile games.
I’m also interested in hybrid approaches like Audible with the ability to gain in-app currency via subscriptions or purchase the specific item directly.
Curious if anyone knows of any studies out there that could help guide my research and also any individual experience using each approach in your own projects.
What’s the usual amount of an in-app purchase vs the subscription price?
In-app is the dominating mobile app monetization model with 48.2% share but still, it depends on what your product is about. For eg. having regular subscribers means you’ve a more loyal base.
PS: I’m a professional market researcher so if you need any further help, feel free to DM.
i’ve found that the subscription model tends to bring in more steady revenue over time, while micro-transactions can be unpredictable. it might be worth considering a combination of both to appeal to different user preferences and maximize revenue potential. as for transaction fees, they can definitely eat into profits, so it’s important to weigh the pros and cons of each approach carefully.
If I were to go the micro transaction approach, I’d probably sell in-app currency bundles to minimize transactions.
The business brains will tell you that subscription models always make more money.
Users will probably tell you they don’t want to be forced into a subscription.
I just built a micro-purchase app because as a new app I didn’t want to be stuck with users on some pricing model that we would both be glued to. A big benefit of one-time purchases for a new app is flexibility to evolve the pricing structure.
You can always add subscriptions later.