In this Digital World, everything is possible with Digital Versions like Applications & Software. So, there is a strong potential to Gain Revenue from Digital Services. From that perspective, the App Subscription Model arises.
When you going to Download & Install an Application, you have to face any kind of Different App Subscription Model. This article is all about the Different Types of App Subscription Models available nowadays.
Different Types of App Subscription Models
Here, we are going to discuss Various Subscription Models of Applications available on the Internet & you can face any one of them when you Download an Application on Mobile. So, let us start with the Freemium App Subscription Model.
1. Freemium Model
The Freemium App Subscription Model is the combination of two different concepts. From the Freemium Model, the users get two different choices. In one case, they can use the application Free of Cost but with some limitations. If the Subscription is used, the Entire Application will become available.
Advantages of the Freemium Model:
- More users are attracted due to the Free Version of the Application.
- High chance the Users get converted from Free to Subscription.
- Different Revenue Streams are available like Ads in the Free Version & Subscription Fees.
2. Premium Model
From the name itself, you can understand that in the Premium App Subscription Model, there is no space available for the Free Use of Application. Once you Download the Application, you must choose any Premium Subscription Package from the application to move ahead.
Advantages of the Premium Model:
- Consistent flow of Revenue.
- Create Perception of Good Quality Application.
- Serious Users can invest in the application to generate Revenue.
3. Paywall Model
The Paywall App Subscription Model is another example where the Free Service & Premium Service are getting together. However, the Paywall Model is not similar to the Freemium Model. In the Paywall Model, users can use the Free Service for a certain number of days. After completion of Free Trail, they have to opt for Premium Package.
Advantages of the Paywall Model:
- Users can get the Sample Application in the Free Trial.
- It suits best for the High Quality & Exclusive Content.
- The Developers have a chance to increase the Free Trail based on needs.
4. Usage-Based Model
The Usage-Based App Subscription Model is the case where you have to pay some amounts to the application as a user. However, the amount of the fee depends upon the Use of the Application. If you are using the application less, the Service Fees will also be less. And for Higher use, the Service Fee will be Higher.
Advantages of the Usage-Based Model:
- Flexible Pricing Model available.
- Lower Initial Fees can attract more users to the app.
- Revenue Generation increases with time.
5. Subscription Model
The Subscription Model is the straightforward Revenue Generating Process where the users need to pay an amount decided by the App Authority to access the features. In this case, there are a large number of packages are provided to the users to pick any one as per their choice.
Advantages of the Subscription Model:
- Easy to Manage & Scale the Revenue Process.
- Constant Revenue can be generated in this Model.
- The users become super active as they have brought the service.
6. Fixed Price Model
From the name itself, you can understand there are some Fixed Prices you have to provide to the application in this Fixed Price App Subscription Model. In this case, as a user, you have to provide the Entire Annual Fee of the Application at the time of the Registering Process.
Advantages of the Fixed Price Model:
- Easy for Users to handle the application.
- The Revenue Generation can be done annually.
- No Recurring Billing needs to be generated.
7. Hybrid Model
In the Hybrid App Subscription Model, different Subscription Models of Applications can be merged & a new system can be generated. There can be a Freemium Model merged with the Usage-Based Model. And hence, users need to pay as per their use in the Premium Version of Freemium.
Advantages of the Hybrid Model:
- A Large Flexibility option is present.
- Revenue Generation can be Maximized by Combining Models.
Conclusion
From the above discussion, we can saw Different Kinds of Subscription Models for Applications are present in the market & even you can even merge Two or More Subscription Models to make a Hybrid App Subscription Model. So, as an Android Developer, it is your choice which App Subscription Model you have to pick for your application.
