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Learning Mobile App Development: A Hands-on Guide to Building Apps with iOS and Android by Michael Eierman, Jakob Iversen

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In-App Purchases

Making enough money from ad-supported apps to support a business is difficult. You need a very popular app to generate a significant amount of money. Another approach for monetization is to release a free app that is supported by in-app purchases. The basic theory for an in-app purchase monetization strategy is that you generate downloads with the free app, get the users hooked, and then allow them to add features by advertising the feature in the app. The sale is made during use of the app. This is a very popular approach among app developers. In fact, more than 75% of the revenue going to iPhone developers in February 2013 came from in-app purchases. Another advantage over the basic paid app is that in-app purchasing opens ...

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