What are Freemium Apps?
Freemium describes a pricing approach for software applications and mobile apps that are free to use and offer paid upgrades for additional options and features. Software companies offer freemium software as a way to encourage people to use and try their software and apps, and make money from anyone who chooses to pay for the optional features.
Freemium versus Free Trials
The freemium business model provides a fully functional program for free, but you can opt to pay for additional upgrades. Unlike free trials, which have time limit for how long you can use the software. you eventually have to upgrade or you can no longer use the software. With a freemium software or app, you get many basic features of the program. The free version may be more than adequate for your needs and you may never need to pay for any optional features. Freemium software allows you and other users to choose if they want premium features with what are called in-app purchases.
For example, many mobile apps qualify as freemium. You can download them for free from the app store, but you must pay for in-app upgrades. In the case of Facebook games, you can get more lives and items if you pay. Often, those payments are less than $1 per upgrade, but this money quickly adds up. It's how companies such as Zynga, which created FarmVille, have become successful despite not charging for their software.
What are some of the upgrade options?
While you don't have to spend any money, upgrades often allow you to achieve an objective -- message more people, add more storage, turn off ads or finish a level in a game. In freemium games, for example, you might be able to purchase clothing and accessories for your characters that aren't available for free or that could take you a long time to earn. Sometimes additional game play options are available with an in-app purchase. The freemium model can also apply to cloud services that save your documents and data.
A freemium office program may allow a certain amount of space on the server, and you'll have to pay to upgrade from that base amount. Music apps that only allow users to skip a certain number of songs in a specified time period qualify as freemium, too.
Freemium caution is advised
Freemium provides a good balance for users, because only people who want or need the paid features need to buy them. But it can cause some problems. In-app purchases can quickly add up, which is why companies such as Apple and Google have made it more difficult for children to make in-app purchases. Children often don't understand that those purchases cost real money, no matter how little the purchases appear to be.
With any freemium purchases, it's important to keep track of what you spend, unless, of course, money is no object. While 99 cents for additional paintbrushes or to move up a game level doesn't seem like much at the time, it's still just a penny short of one dollar, so keep track of your spending to stay within your budget.
To my way of thinking
Most mobile freemium apps are listed as free, so there's absolutely no risk in installing and trying one. Whether you use an Apple or Android device, or are looking at desktop applications, it will be clear when you have to make a payment to unlock or obtain some additional features. If you use Apple, your purchase is charged to the credit card you have on file with your Apple account. For Android, you can use either a Google Play account or the Amazon App Store to make a purchase, and your checkout is either with Google or Amazon.
Many of the mobile apps listed in the Top Grossing charts in the app stores are freemium apps, so it's a business approach that's seems popular with both consumers and app developers and offers you a way to try an app before spending any money.
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