Projections show that 95% of people in the UK will be using smartphones by 2025.
As smartphone use has grown, so has the use of apps. Effective app development involves various aspects, and there are all kinds of features you can include. One thing that’s often seen is in-app purchases, which allow companies to generate higher profits.
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This in-app purchase guide will cover everything you need to know about how they work. Keep reading for more.
What Is App Development
App development is a process that involves developing app software specifically for mobile devices. Traditionally, this involves a high level of tech skills, but builder.ai can be used to create apps without the need for any coding.
What Are In-App Purchases?
In-app purchases are things that people can buy within a mobile app. These are typically digital goods that enhance the app in some way. They can be considered an upsell or upgrade to the original version of the app, which is often free.
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In most cases, these are optional. The free app offers basic features, so users can decide on in-app purchases if they want more functionality.
What Can Be Sold With In-App Purchases?
An in-app purchase can be anything that improves an app. They vary greatly depending on what an app does. Some common examples include:
- Songs or audio
- Bonus game levels
- Bonus game items
- In-app/in-game currency
- Premium features
- Removal of ads
- Increased usage limits
Games often contain in-app purchases, but they can appear in almost any type of app.
Different Types of In-App Purchases
There are four main categories for in-app purchases. The types you include will depend on the functionality of your app.
Consumable
These are typical of games and can be things like boosters or in-game currency. They’re anything that you can buy (usually multiple times) and consume within the app.
Non-Consumable
These are also common in games, as well as other apps. They’re permanent upgrades, so when a user buys a non-consumable, they’ll have access to it forever.
Renewable Subscriptions
These will give the user access to a feature within an app for a set period. At the end of the cycle, it will automatically renew, and they’ll still have access to the feature.
Non-Renewable Subscriptions
This is similar, but it won’t automatically renew. It will have a specified time frame for a one-off payment.
Benefits of In-App Purchases
When developing an app, including in-app purchases can be a great decision. Some of the benefits include:
- You can offer the standard app for free, resulting in more downloads
- A low-risk, low-friction way to generate money
- Digital goods don’t require stock or overhead, so revenue potential is huge
- You can charge based on app usage
- You can combine these with other monetization strategies to increase revenue
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Most free apps include some form of in-app purchases. It’s an excellent way to increase profit while not forcing people to pay to use your app.
Your App Development
During app development, you should definitely consider the inclusion of in-app purchases. It’s one of the most effective ways to increase revenue from your app.
