Tuesday, September 28, 2010

Free vs Paid Apps

The First session at the BlackBerry DevCon 2010 is all about Free vs Paid apps. And whilst listening to the leaned speakers telling us that "having a free app helps you get you more downloads than just a paid apps" - I was thinking "What is the future for the freemium model?".

We have successfully operated a "freemium" service with our BuzzMe Product since April 2009 - and its worked quite well for us - and for our users, but it that what people really want? The commercial alternative seems to be to introduce advertising into the apps, but I personally don't really like apps that include lots of ads - unless there is a real benefit to me and my use of the device - which most apps are just not able to provide.

What about a model where (a bit like what Pandora has done to the music market) where users pay a regular monthly fee to download any number of utility style apps - now that is something that I as a user might actually pay for - and that is also something that could reward developers for their work.

Challenge there is that might provide a way for developers to make a "hobby living" but can it create sustainable businesses? I doubt it.

For developers to grow to scale and create real value in their companies there needs to be a service that users are willing to pay regularly for in a way that the service actually either a) gives them a real cost saving over other commercial alternatives, or b) provides them with a lifestyle benefit that is worth paying for.

We have some ideas about this - but how about you? We would love to hear your comments

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