Subscription-based Pricing is a HUGE deal! Till recently it was limited to only a few categories, but yet again Apple will shake the App Industry by allowing any apps to use the subscription business model. You should use it immediately! Here are 10 reasons why Apples Subscription-based Pricing is a game-changer.
In our opinion here at Rebeloper Subscription-based Pricing has been the Announcement of the Year! But before we dive into the details let’s talk about the current status of the App Industry. Free to Play rules everything. While this is a good way of earning money from apps it had some serious side effects on the developer community. The problem with Free to Play is that it cannot work for all kind of apps. It really works mainly on games and it mainly works only when implemented on a complicated and huge scale.
Free to Play was eating up the Middle Class of the developer community. It seemed that nothing will save us and we’ll be pushed out by the giants of the elite 1%. But the going for the subscription business model may give us a second chance. I personally have been waiting for this day for years. Why? Because the Subscription Based Business Model is the Holy Grail of Cash Flow.
The only one problem with subscriptions was that people didn’t necessarily wanted to subscribe to services or apps. Now that Apple is taking this model to the masses by introducing it on the App Store, we will see a massive adoption rate among users. It will no longer be weird to subscribe and pay each and every month. This time it will be something normal.
Be the first who changes his business model to adopt the Subscription Pricing and profit from being an early adopter. Here are the 10 most important reasons why you should definitely consider using the Subscription Model:
- You will get recurring payment monthly. It’s like Getting a new user pay for your app each new month but without spending the time and money to acquire him. Sweet!
- Subscribers churn rate has historically been around 1-3%. This means that if you have 100 subscribers this month you can basically bet that you will have at least 97 next month. A good way to predict cash flow and plan next moves.
- Subscribers get in the habit of using your app. Because they pay anyway they will come back to your app to use it. Retention rates among subscribers will rise! Basically if you can make them coming back for around 90 days they will most probably stick for another 180 days or more.
- The user makes only one “Payment Action” when he subscribes but pays several times. The subscription model reduces the “Pain of Paying” to only 1 while users money is transferred to your bank account several times.
- Finally you will get paid for working on updates. This was not the case of the “Buy Once” model where users expected you to update and maintain the app for years after their initial purchase. Even worse: with the Free to Play Model Ruling the App Store users now expect you to update and maintain your FREE app. Crazy, right? Don’t worry, the Subscription Model solves this issue.
- Users are more likely to spend a little now and have the freedom to test your product and unsubscribe than to pay a huge sum upfront for your app.
- Everyone who had the power to create a subscription based service is using it. Think of Newspapers, the Electric Company, Netflix, Apple Music. Now you have that power in your hands. Thanks Apple!
- If you do a great job you will earn more. Apple rewards developers who have been holding on to a subscriber more than a year. After the first year you will get 85% profit share!
- I know that games rule the App Store but it’s worth to mention that now other App Categories get a chance to strive.
- The Middle Class of the App Industry (me and you) will finally get a standing chance of creating a sustainable business from publishing apps. Free to Play is killing us. It was about time Apple made this move.
We at Rebeloper are super excited about the new Subscription Pricing and are already experimenting with some Subscription Based Models. You will surely hear from us on the topic in the future. What are your thoughts about the Subscription-based Pricing? Comment below.
Updated on September 3rd. Take a look at what Auto-renewable Subscriptions can offer you at: https://developer.apple.com/app-store/subscriptions/
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