The average smartphone user spends two hours a day using mobile apps, including gaming and social networking apps. There is a growing trend toward free apps—23 of the top 25 Google Play apps are free. For 2013, the global app business is expected to make a staggering $25 billion in revenue, up a healthy 62 percent from 2012.
What model should app developers embrace to maximize revenue? The Freemium App Model offers apps free of charge, while requiring charges for advanced features, functionality or virtual goods, and it marks a shift away from the practice of posting in-app advertisements and pay-per download model. Candy Crush Saga uses elements of this model and makes an estimated $632,867 a day.
The Freemium App Model does have some flaws, however. App developers take a on a huge risk. They must continually convince users to make in-app purchases since they have no money from the initial download. To learn more about this model, check out this infographic presented by Startapp.