Free -> Premium Model

"Freemium"

Elliot Lee<slideshare@greengar.com>

Brain Tuner Lite (Free)

Prior to becoming an iPhone app developer, I was a web developerBrain Tuner originated as a Google Gadget in early 2008, where it has ~250,000 usersOn Aug 09 '08: Released Lite version

Ranked #2 on the list of Top Free AppsNot sure why, but my guess is: simple + fun + iPhone app + bright, cute icon + good name + App Store + luck = success!

Macworld ReviewReviewed by Macworld on Dec 15, 2008

Appeared on Macworld.comAppeared in the February 2009 issue of Macworld magazine

In the first year: over 1.6 million usersAll Time: over 2.3 million users (as of Jul 23 '10)

Brain Tuner Premium

On Aug 28 '08: Released Premium version @ 99¢ USDOn Sep 03 '08: Updated Lite version to promote Premium

UIAlertViewswhen the options (info) button is tapped (sometimes)on game end (sometimes)

320x50 banner ad (sometimes)

Real Code Snippet

Maybe not beautiful, but it is practicalBuild Lite & Premium from the same code, but use separate targets

Edit target properties and set "Other C Flags" e.g. -DLITE_MODE

ResultsHard to track: these were the early days of the App StoreI have no analytics, no link tracking, no affiliate links

I don't even have all the reports from AppleMy guess: many Premium users upgraded from Lite

Did better than many other appsOnly thing I know for sure: Year 1 graph, based on Apple's weekly reports

Whiteboard: Collaborative Drawing

On Jan 21 '09: Released Lite versionOn Jan 29 '09: ReadWriteWeb.com front page (luck)Ranked #2 on the list of Top Free Apps

Not sure why, but my guess is: simple + fun + useful + iPhone app + networking + bright, cute icon + good name + App Store + luck = success!What differentiates me from the competition?

It works wellIt's easy to use (simple, fun, useful)

NoteI'm not the firstI don't have the most features

Took a long time to make Pro

Full-time computer engineering student at USCOn Aug 20 '09: Released Pro (7 months later)On Sep 03 '09: Updated Lite version to promote Pro

Three in app methods:UITableView row (if the user has Internet, always)UIAlertViews

on app launch (sometimes)on drawing save (if the user has Internet, always)[when peer attempts to open an image]

Really fancy: load everything from my serverGood: change things instantly and remotelyBad: disaster when server went down for a few days

Three Sources for Results Data

bit.ly linksfree URL shortening and tracking service

affiliate linkslimitation: haven't yet signed up for any iTunes affiliate programs outside the U.S.

raw sales numbers & graphs

bit.ly links (Totals as of Jul 24 '10) on app launch alert = 547,116 clicks

362,583 from U.S.54,849 from U.K.129,684 from other countries (e.g. Canada, Australia, Germany, ...)

on save alert = 604,956 clicks (similar country distribution)realization (stats + observation): many people don't read alerts!

table row = 312,117 clicks (similar country distribution)

Analysis:Whiteboard Lite has had 3.5 million total users (Flurry) Sent a total of nearly 1.5 million clicks to the App Store Very flawed estimate: 41% of users clicked through Problem: if one person clicks through multiple times (pretty likely to happen!) they're counted multiple times

Affiliate Links

Apple partners with LinkShare for its U.S. affiliate program"signature" links include our custom tracking identifierStats tell us the cost of what the user bought

But not what the user actually boughtAnything the user buys will be credited to my account5% affiliate commission

Nice: from those U.S. users who buy Whiteboard Pro through my link, I effectively receive a 75% share

Remember these serious limitations...And I've only had time to compile & total the statistics for 2009 and Jan 2010So let's see what I do know so far...

LinkShare, 2009 + Jan 2010

Table Row: fewest clicks, greatest sales ($)Launch Alert: in betweenSave Alert: most clicks, lowest sales ($)

(Remember, LinkShare commissions are only 5% of this)

Analysis: "earnings" per click (note many caveats: e.g. U.S. only, includes other purchases that are not my app)Table Row = 41¢ per clickLaunch Alert = 23¢ per clickSave Alert = 21¢ per click- supports theory: many people don't read alerts!

# Active Users: slope increase on Sep 3

Lots of people got aniPod touch for Christmas

It can be good to be onthe App Store at that time

Christmas 2008, Brain Tuner Lite (Free)

In retrospect, it's an annual pattern!

Dec 25

Final Thoughts & Advice

Users choose apps based on the icon and nameLook at the Top lists on the App Store for examples of good icons and names

Ratings don't matter too muchObserve that many highly-ranked apps aren't highly rated2-3 stars is common among the Top 25 Free Apps

Most users buy or download your app directly on their device

Not much point in anything that's not on the deviceI wouldn't worry much about website banners, Facebook ads, press releases. These things can help, but promoting your apps in other iOS apps is going to provide the most benefit for the least effort.

Elliot Lee <slideshare@greengar.com>

Greengar Studioshttp://www.greengar.com

Download my apps (iTunes link)http://itunes.greengar.com