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Mobile apps: If you develop one, should you make it PAID or FREE?

24 Feb, 2010 McKell Naegle

This is an age old question for developers: Should my app be PAID or FREE?

Greg Yardley, CEO of Pinch Media, offers some statistics based on the 35 million+ downloads his iPhone app analytics startup has tracked.

For free apps, only about 20 percent of users return to use the iPhone app the first day after download.

Usage quickly declines from there.

By 30 days after download, less than 5 percent use the iPhone app.

The chart for paid apps (not pictured) shows a slightly steeper fall-off rate.

In short, there is a short period developers and marketers have to garner attention and revenue.

Garner’s advice: “Unless there is something inherent about the iPhone app that screams free, sell it.”

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