The Freemium App Model [Infographic]

By Brian Wallace | Small Business

How many hours a day do you spend a day with mobile apps? The average smartphone user spends two hours a day with them, which includes a mix of gaming (43 percent) and social networking (26 percent) applications. The trend of free apps is growing rapidly—23 of the top 25 Google Play apps are free. In total, 81 percent of the Google Play Store and 90 percent of the App Store is composed of free apps. Of the over 800,000 mobile apps available in the App Store, only 80 of them generated more than $1 million in revenue during the fourth quarter of 2012.

Now, for 2013, the global app business is expected to make $25 billion in revenue, up a whopping 62 percent from 2012. The Freemium App Model is very much a part of the mix here—it’s a model that offers the product free of charge, while requiring charges for advanced features, functionality or virtual goods. The popular Candy Crush Saga game is free for download and makes money from in-app purchases. The game makes an estimated $632,867 a day. Candy Crush’s engaging gameplay tempts users to make in-app purchases, as only five lives can be stored at any one time.

The Freemium App Model, however, is not without some flaws. To learn more, check out the infographic below presented by Startapp.

The Freemium App Model [Infographic] image Startapp freemium in app purchasesv5aThe Freemium App Model [Infographic]

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