Ever since the app store was introduced, the mobile market has continuously expanded. As smartphones got smarter and the accessibility of smartphones became more widespread, mobile applications thrived. Today, there are about two million apps available to anyone who has a mobile device.
With an industry as big as the mobile industry, there are developers who make a living with their apps. One might think that developers earn most of their income through their paid apps, but there lies an alternative, more profitable business model, referred to as the “freemium” business model.
This freemium model has recently taken over the app store, as more developers convert to the freemium business model.
With an industry as big as the mobile industry, there are developers who make a living with their apps. One might think that developers earn most of their income through their paid apps, but there lies an alternative, more profitable business model, referred to as the “freemium” business model.
This freemium model has recently taken over the app store, as more developers convert to the freemium business model.
What is "freemium"?
These freemium games are free at checkout; anyone can download these apps for free. However, the user will soon discover that these games are not completely free. There exist optional micro-transactions within the game that the player can purchase which can be used to either purchase in-game items or remove an obstacle from the game that is causing him or her stress. The term "freemium" refers to any app that is originally offered for free, but contains optional micro-transactions.