Chapter 3. Pricing and Revenue Models
In This Chapter
Identifying the market
Finding income opportunities
Supporting other business ventures
Estimating revenue
Adjusting to market conditions
Ever since the App Store was launched, developers kept asking the hot question "What should I charge for my application?" No single correct answer exists, but the question can affect your development, your future as an iPhone application developer, and your success with this application.
Tens of thousands of applications are in the App Store, so you can find all sorts of pricing levels. The key is to determine what makes sense for your situation and apply a price that can help you meet your goals.
Identifying Revenue Streams
Whatever skill and sweat you put into an iPhone app, you probably want a way to receive a tangible reward for it. You can cash in on an iPhone app in two ways:
Paid applications: Generate income directly from the App Store when users download them.
Free applications: Generate income only from other business activities, such as
Increasing sales of related products
Selling advertising
Building your own reputation
The best revenue model for your app depends on your needs and how your application matches up to the current offerings in the App Store.
Paid apps
The obvious way to get a return from selling an iPhone app is a transaction in the App Store:
You set the price.
The user pays that price.
Apple keeps some of the money.
Apple deposits the rest in your bank account.
Evaluating how much to charge ...
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