Pricing model for IPhone paid + free app + desktop app

Question

I finished building an app that allows beaming of photos, contacts and text clips over Wi-Fi IPhone to IPhone and IPhone to desktop.

I want to decide on the feature set of the lite version of my IPhone app. I also want to come up with a pricing model. So the question is, which of these components should be free, and for which I should be charging for ?

For example, the lite version could have all features except the ability to interact with the desktop version - that is, it would work IPhone to IPhone, but not IPhone to desktop. The paid version would be able to beam to the desktop. In addition, the desktop version would be free, so you could share it with family and friends.

Alternatively, there would be a single free IPhone version and I would charge for the desktop app. The only thing here is that I would have to setup server side code for managing registration codes.

Answer 1

One reason to make your desktop app free and the iPhone app a paid product would be to take advantage of Apple's app store and their payment processing, hosting, etc. While I know 30% seems steep for what Apple provides, it is nice to have that part of the business be handled by someone else. For example, you will never have to deal with credit card processing or have to issue refunds - Apple does all that for you.

I like the mechanism that is more suited to viral distribution and giving people a good taste of all the features, before they are sort of convinced to go for the paid version. The marketing value of an app that can be freely tried out once one user recommends it to another, is invaluable. If someone recommends a product to me and I have to pay for it, then I probably would put off trying it till alter when I have learned more about it. However, if it is free, I can download and try it without feeling like I need to do more research prior. Once I like, and am hooked on it, then I will want locked functionality that I would have to pay to unlock.

I'd stay away from selling, payment processing, and reg code management, if your expertise is in coding - you'd make yourself more money writing more code than writing reg code management utilities...

Good luck.

Answer 2

I'm not sure charging for either is the best idea. If you keep both tools free, you get people trying (and liking) both apps. Viral distribution will ensure a decent user base. Once people use both tools, they're more likely to pay for the next part, which is the connector software.

I like your idea of three parts: a free iPhone app (Let people share photos on their iPhone), free PC app (There are hundreds of photo viewing apps, free... Don't try to charge for them, that way lies pain) and paid connection between 'em.

That way:

• You get people using your iPhone app virally (To share with each other's phones & try out the application)
• You get people using your PC app virally (Because the cost to try is nearly null)
• The connection can be sold through Apple's iStore, so you don't need to do the money handling side

You could even make the connection component a subscription, but as an end user I hate that idea unless I get some additional functionality from it being a subscription (Like free hosting).