imageThere are two version of PianoTime for Windows 8 – a successful title from a Colorado publisher. The free version sponsored by ads, and the $3.48 ad free version. Do people purchase their way out of ads? Yes, they do. Do most people. No, they don’t. So, is it worth it?

Freemium

Freemium is a booming business model for apps. Because of digital production, product copies can be given away. They are done so without an expectation that all or most users will buy. Instead, a single-digit percentage will purchase. But, the wealth of free functionality drives market penetration. As a result, that small percentage surpasses traditional pay-for-what-you-get purchase.

For example, a durable consumer purchase is the ad-free version. Similarly, an in-app purchase hiding ads is the same. Both provide users the full fidelity of an app. They can use it. They can love it. They can rely on it. All for free. Market penetration grows. Respect for the app and annoyance around ads are the purchase motivators. The percentage is small, but the number is large.

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