BizSugar.com › Startups › The Art of the In-App Purchase

A successful in-app purchase (IAP) strategy is about finding the tipping point between enough functionality without IAPs to create a positive experience, but with enough added value once the IAP is made to justify the expenditure.

IAPs, either free or with a paid app, are dominating the app market, with almost half of apps in the App Store adopting the freemium IAP business model. Unfortunately, it’s not so easy to get people to use real money to buy digital things, like coins, points, a bonus item or unlockable content. So here are our thoughts on the art of IAP, and how you can use it to make yourself a little more moolah.

Quick note – before we continue, we need to be clear that most of the existing chatter about IAPs as well as most of their use in apps is in games, so that’s where I’m going to focus my attention.