hi, this is a minute of overpass. my name is eric and i make apps. now this week i want to ask, which is better: in-app purchases or paid applications? ok. so the biggest concern you should have when creating a new app and the biggest concern i have when creating a new app is how you're going to make money from it. now, as far as i know through my experience, there's only 4 ways of doing that. you could 1. have a free version of the app with ads, 2. have a free version with in-app purchases, 3. have a full version of the app that people just outright buy, or 4. do something else like subscription to a website or branding like pepsi for example.
pepsi doesn't make apps to make money, they make apps to get people to buy pepsi. so, those are the big concerns. now i concern myself with the first 3. the wisdom at the moment with app experts is that they will tell you, don't worry about doing that full version of the app. nobody is buys apps anymore. you're just wasting your time. what you should do is have a free version of the app and then use upsell in-app purchases in the app to get them to upgrade. however, i just want to show you my statistics for my apps here. now these are for february, going back just a couple days ago. here's the statistics for google play. now here you can see that 68% of people would prefer to buy the app out right. so they try the app. they like it. rather than mess around with in-app purchases, they go find the full version and download the whole thing.
it's easier for them. it's easier for me. it's easier for everybody. however, some people just prefer to buy bits and pieces. so like 31% use in-app purchases in the app. it's contrary to what a lot of people will tell you, at least in my case. for me, full sales work but you need that free version out there otherwise nobody won't buy anything that they can't try. for itunes, it's completely different. itunes, i only make 2% of sales through in-app purchases. 2% are through bundles of apps and 95% are just people going in buying the full version. so it's different from what you may see. now the point that i'm trying to make is not that one is better than the other. in some ways, in-app purchases are much better than full versions of the app. so, if you have like a game you kinda expect people to play a game up to a certain level then go download a completely different app
and then play the rest of it and other things that require customization for example. you don't want them to go through the whole experience again. they should just be able to go and purchase it. but the point i'm trying to make is be careful of what app experts are tell you. now, there are no hard and fast rules in app development. all apps are different. all audiences are different. if i took other people's advice on what i should do with my apps, i would probably lose half the revenue because i'm going to get those full sales of the apps. there are no app experts. even what i say, take it with a pinch of salt. that's it with my minute of overpass this week. sorry, it's always over a minute. i should probably change the name. if you would like to have an app made, give overpass a call. we'd love to talk to you. our number's 0845 834 1008 and i'll talk to you next week.
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