The value of In-app Purchases

Punch Quest is the latest title from Rocketcat game developer. The developer offers the game completely free of charge and is experimenting with to earn revenue by using the in-app-purchase option .

Do people spend money on in-app shopping

In The Verge they talk about the game and the failure of their experiment. The game seems to have been downloaded more than 600,000 times already, but they’ve barely managed to break five-figure revenue and, by one count, the revenue from one application is plummeting about a week after its release. This means that during the first days the expectation is great and people spend money but as time goes by it gets forgotten and this in the best of cases.

The value of In-app Purchases
The value of In-app Purchases

This game, has been designed from the first minute with the intention of generating revenue through in-app-purchase , so it seems that if it is not giving the expected result is that something fails. The difficult thing is to find out what.

Graham Spencer once wrote that people are more likely to pay for tangible options or novelties ” “. That is, people would rather pay for increasing the number of levels or adding new game modes, than pay for getting a new skill, a weapon or simply virtual money to buy this kind of stuff in games. If new levels or game modes are bought, people have a reason to return to the game, while otherwise there is nothing new, there is nothing to enjoy and people are not willing to pay for it.

Loren Bricther from Letterpress believes that the application is not successful because of lack of in-app-purchase optimization . He says that the totally free distribution of the application is an illusion to attract more downloads, but that these people are not really willing to pay.

In short, people want to feel like they are actually buying something when they make an in-app-purchase and not feel like they are throwing away money. Developers should think about that.

We could take the iThoughts HD application as an example. The application is sold for $9.99 and can be expanded through in-app-purchase. What your developers do is offer the owner of a license, the possibility to buy new features before they officially arrive at the application . In other words, the functionality will arrive in the form of an update to everyone who has the application, but if the customer wants to have it before then they can pay for it and not have to wait until the official release of the update.

Succeeding in creating an in-app-purchase based application is very difficult. You have to offer something that people are willing to pay for and, perhaps most importantly, something that people will pay for on a regular basis, otherwise there will come a time when the revenue will plummet and you will have to ” close the bar ” for lack of profit or at least revenue.

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