| Whatever the reason for developing your iPhone | | | | The best revenue model for your app depends on |
| application, one of the most popular reasons is to | | | | your needs and how your application measures up to |
| create revenue. There are several ways to do this | | | | similar applications already in the App Store, so don't |
| and we will go over these ways in this article. | | | | forget to do your homework! Evaluating how much |
| Paid Applications: These applications generate income | | | | to charge for your app involves comparing other |
| when the user downloads the application, they pay a | | | | applications and market research. This research |
| small fee. This is the most straight forward revenue | | | | includes researching the App Store for similar apps |
| stream for iPhone apps. | | | | and setting your price from there. If users are keep |
| 1. You set the price | | | | to paying a certain price for a certain type of app, |
| 2. The user pays that price | | | | you should not try to reinvent the wheel and set |
| 3. Apple takes 30% cut | | | | your app at a higher price point. |
| 4. You keep the rest, it's that simple! | | | | When determining the price to set for your app, take |
| Free Applications: How these applications make | | | | a moment to determine how much money, time, and |
| money is a little less obvious that paid apps, but if | | | | intellectual data went into developing the application. |
| executed correctly that can be just as profitable if | | | | If you feel that it should be at a certain price point, |
| not more! Here are a few ways that a free | | | | sometimes it can pay off to trust your "gut" and set |
| application can create revenue. | | | | it at a price that appeals to you. Pricing iPhone apps |
| - Increasing sales of related product | | | | takes a lot of market research and testing. |
| - Selling advertising | | | | Sometimes when you raise the price people will |
| - Building a reputation for your company, increased | | | | actually begin to purchase more, but the main point is |
| exposure | | | | to try multiple things and decide from there what |
| - Selling an upgraded version on the same app | | | | works best. |