Microtransactions are a hot topic of debate in the app world. They are a great way to make money from your app, but do they exploit users? Read on to find out.
Every app inventor dreams of making it big in the market. We all know there are simple app ideas that can be hugely successful and make money.
But there are also more complex apps that use microtransactions to generate huge amounts of revenue for app developers.
Not sure if your $2 million dollar app idea needs the help of microtransactions to succeed? With years of experience developing apps, BrainyApps can help.
While microtransactions can definitely boost revenues, freemium monetization strategies can also sabotage the success of your app idea as it moves through development and enters the marketplace.
So, we’ve put together some pros and cons to consider before choosing the best way to make money from your app.
Let’s build an amazing app together. Here we go…
Pros Of Microtransactions
1. Microtransactions Can Generate HUGE Revenues
Candy Crush is one of the most touted case studies about the benefits of freemium apps.
At the peak of its popularity, Candy Crush was raking in a jaw-dropping $850,000 from in-app purchases every day!
The app’s developer, King Digital, was eventually purchased by Activision Blizzard for nearly $6 billion.
Yes, you read that right…that’s “billion” with a “b!”
It’s hard to argue with success when measured in billions.
When done correctly, there is no question that freemium apps can propel your revenue numbers up dramatically.
2. Positive Widespread User Experience
In terms of app design, microtransactions can make your app users feel like champions.
Supporters of freemium app design say it is the best way to enhance the user experience for everyone.
Game designer Sean Plott thinks freemium is the best way to develop games going forward.
He says, “If people are playing your game and there is something they are frustrated with, the developers can fix it and make the players happy, and the players will continue to stay on the product.”
Make the players happy, and they will keep coming back for more.
League of Legends, one of my son’s favorite games, is an example of using micropayments in this way.
The game is free to play, but League of Legends generated more than $1 billion in revenue in 2014.
Players can buy new characters and new character designs, enhancing their abilities and experiences in the game.
Users of every skill level can use apps comfortably and to their skill level when microtransactions are used in app design.
The more people that feel comfortable and enjoy using your apps and games, the better.
By the way, freemium is not only for games and gaming apps.
Household software developers like Skype, Dropbox, and Spotify also attracted millions of users using the freemium model.
3. More Initial Users
When properly balanced, the freemium strategy is bound to bring more new users to your app.
Who isn’t willing to try something for free?
Freemium is like giving a free trial with full functionality.
As users need additional items to customize their own experience, they invest back into your app.
Cons Of Microtransactions
1. Subject to Legal Scrutiny
Microtransactions can make you billions, but they can also bring the watchful eye of law enforcement agencies.
Many apps and games with a freemium design have recently come under public scrutiny for allegedly taking advantage of younger users.
By exploiting users unfairly, critics say app inventors and developers have generated wealth unfairly.
Some freemium apps have faced public backlash for charging large fees.
Nothing could be worse than going through the trouble, effort, and expense of creating an app from an amazing idea and then having it be outlawed.
But don’t fret because microtransactions can still be low-risk and provide your users with a great experience if you balance the freemium services against the app itself.
2. Some Hardcore Users Don’t Like Freemium Apps
One of the biggest keys to success in your app is the role of early adopters and specialists.
As explained in Malcolm Gladwell’s excellent book, The Tipping Point, these early adopters in the app and game markets may be tech-savvy super users open to trying new things.
Alienate these users and you could diminish your chances of widespread success.
Why are hardcore users and gamers sometimes severe critics of the freemium experience?
For one thing, it may create an un-level playing field.
Freemium services are not unlike the controversy over steroid use in baseball.
If some players are using steroids and others are not, the game can be unfairly tilted to one side.
Also, some users dislike the overall experience freemium provides.
Because ads can slow down the user experience, some users would rather pay upfront for full functionality of your app.
Regardless of where developers end up on the microtransaction debate, if it negatively affects the experience of early adopters, widespread use could go down.
Early adopters and widespread use help generate reviews and momentum for your app.
Just use your freemium strategy wisely and you will avoid opening your app to negative criticism and even legal debate.
Make Microtransactions Work For Your App
If you have an amazing app idea, but are still unsure about using microtransactions, be sure to choose an app development company who will assist you with this crucial decision.
From development to marketing, apps require experience and special skills to succeed.
Getting expert help now will help ensure positive reviews in the future.
BrainyApps works closely with you to decide which features will boost user experience and generate the most revenues.
Our creative, dynamic team helps build and develop apps tailored to your business goals, while also providing continued support and guidance after your app is launched.
Start climbing your ladder to app success without delay.
Contact BrainyApps now and turn your amazing app idea into reality.