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Understanding and Using In App Purchasing

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In App purchases are gaining lots of popularity as a solid way to drive revenue for an iPhone or iPad app. Jeff Hughes makes clear that the concept is to give away some of the functionality of your app and then charge for additional features or functionality.
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Everyone likes to get something for free. It's no different with iPhone apps. The freemium model is gaining ground as many developers are realizing that using the free app model with In App purchasing built into the app is a great way to sell their products.

The ability to have In App purchases was introduced some time ago by Apple, but more recently a number of well-known apps are using this approach to generate sales.

Doodle Truck, a popular iPhone game, offers its popular app as a free download. The app allows you to access an In App purchase, which offers a game pack for 15 new games.

In App purchases can be broken down into three categories or types: non-replenishable, replenishable, and subscriptions. I

In App purchasing has the following characteristics:

  • Requires iOS 3.0 and later.
  • In App purchase capability can be offered on free and paid apps. Some apps, such as I Am T-Pain, are purchased and also provide music that can be downloaded for an extra charge.
  • No free In App purchases are available, meaning that you can't offer an In App purchase without charging for it.
  • There is no option to gift an In App purchase.
  • If an app provides In App purchases, the app description page may include a description page of available In App purchases (a store) or the app can list the Top In App purchases

Non-Replenishable In App Purchases

In App purchases that are non-replenishable only require a single purchase. They can be transferred to multiple devices authorized with the same iTunes Store account. For example, an app that allows you to purchase additional game levels is a one-time purchase. An app that allows you to purchase additional countries for navigation is another example of a non-replenishable In App purchase.

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